The 250kW bioWAVE pilot is expected to generate sufficient power to address the electricity needs of 250 homes and will be connected to the national grid.
The project also received A$5m ($5.1m) from the state government of Victoria.
BioPower and its projects partners too are contributing funds, equipment or services, in support of the project.
The company will start constructing the bioWAVE in a few months time with its planning; site development, permitting, and engineering design are all underway.
The bioWAVE pilot is expected to be deployed in late 2013 after it is satisfactorily operated and tested for a period of 21 months.
Australia based BioPower Systems is a renewable energy technology company developing systems for both wave and tidal power conversion.
