An Irish wave energy company is joining forces with multinational oil giant Chevron in a deal worth about €500,000.

Wavebob, which is developing systems of harnessing wave power to provide energy on a commercial basis, said it had entered into a deal with Chevron Technology Ventures to provide technical consulting services regarding wave energy conversion.

Wavebob launched its prototype last year at the Marine Institute test site in Spiddal, Co Galway. The next stage model is due to be launched in June.

Chief executive Andrew Parish said yesterday that Chevron chose the Wavebob prototype over several other systems from rival companies.

"Chevron is the fourth-largest energy company in the world," he said. "Its subsidiary, Chevron Technology Ventures, has been scouting the world looking for emerging energy technologies.

"One of the areas that they see big potential in is ocean and wave energy, and they have chosen our technology, which is essentially a floating buoy."

He added: "They've looked at a number of converters around the world and they have decided that Wavebob's is the most promising technology."

Mr Parish said a key reason for Chevron's decision was that it was a buoy, as the group was already familiar with buoy-based systems. In addition, the technology was reliable, cheap and could be maintained at sea.

"For us, it means that we have access to finance and technical resources. They have over 60,000 workers around the world; it's a huge opportunity for us," he said.

Neither side said how much money would be involved in the deal. However, it is understood to be in the region of €500,000.

Wavebob has already spent more than €2.5 million on research and development.

Minister for the Marine Noel Dempsey attended the announcement of the deal yesterday. He said it was in line with his call to have Ireland placed at the forefront of ocean energy development.

Physicist and company chairman William Dick founded Wavebob eight years ago.

Chevron has spent more than $2 billion (€1.49 billion) on researching alternative and renewable energy over the past five years.