Exhibit 10.23

                                                                  20 July, 2001
                                 MUTUAL RELEASE

                 THIS RELEASE ("RELEASE"), is made by and among

                  Ocean  Power  Corporation,  a  Delaware  corporation  having a
         principal place of business at 5000 Robert J. Parkway, El Dorado Hills,
         California 95762, United States of America ("Ocean Power"),

         on the one hand, and

                  Aquamax  (International)  Holding  B.V.,  a Dutch  corporation
         having   a   principal   place  of   business   at   Locatellikade   1,
         Parnassustoren,  1076 AZ Amsterdam,  P.O. Box 75215, 1070 AE Amsterdam,
         The Netherlands ("Aquamax"), and

                  Keeran  Corporation N.V., a Netherlands  Antilles  Corporation
         having a principal  place of business  at World Trade  Center  Curacao,
         Unit  BC.II.01-04,  Piscadera  Bay,  Willemstad,  Curacao,  Netherlands
         Antilles ("Keeran"), on the other.

Ocean Power,  Aquamax and Keeran may each be referred to herein as a "Party" and
collectively as the "Parties."

                  WHEREAS,  the Parties  previously  entered  into that  certain
Aquamax-Keeran-Ocean  Power Licensing Agreement, fully executed on September 21,
2000 (the "Original Agreement"); and

                  WHEREAS,  the Parties  desire to release one another  from all
duties,  obligations,  covenants  and  representations  under or arising out the
Original  Agreement and to relinquish all of their  respective  rights,  powers,
privileges, interests and claims under or arising out of the Original Agreement;

                  NOW THEREFORE, FOR GOOD AND VALUABLE CONSIDERATION, including,
inter  alia,  the  signing  of this  Release  by each  Party,  the  receipt  and
sufficiency of which are hereby acknowledged, the Parties agree as follows:

                  1. Ocean Power hereby releases, acquits and forever discharges
Aquamax and Keeran,  jointly and severally,  their  subsidiaries and affiliates,
and their respective directors,  officers, employees and agents (for purposes of
this Release,  collectively referred to herein as "Aquamax and Keeran") from any
and all duties, obligations,  covenants and representations and warranties under
or arising out of the Original Agreement.

                  2. Aquamax and Keeran, jointly and severally,  hereby release,
acquit and forever  discharge Ocean Power, its subsidiaries and affiliates,  and
their respective directors, officers, employees and agents (for purposes of this
paragraph,  collectively  referred to herein as "Ocean  Power") from any and all
duties,  obligations,  covenants and  representations  and  warranties  under or
arising out of the Original Agreement.

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                  3. Ocean Power  hereby  relinquishes  and  releases all of its
rights,  powers,  privileges,  interests  and claims under or arising out of the
Original Agreement.

                  4.  Aquamax and Keeran  hereby  relinquish  and release all of
their rights, powers,  privileges,  interests and claims under or arising out of
the Original Agreement.

                  5. This  Release  shall in no way be construed as an admission
of any  liability by any Party.  This Release shall be binding upon and inure to
the  benefit  of  the  Parties  and  their  respective  legal   representatives,
successors and assigns.

                  6. The Parties shall not:
                  (i)  disclose  the  contents  or  substance  of  the  Original
                  Agreement;
                  (ii)  disclose  any facts  regarding  the  dealings  among the
                  Parties from the execution  date of the Original  Agreement up
                  to the date hereof;
                  (iii) issue any  statements or press  releases  concerning the
                  termination of the Original Agreement

         to any  third-parties,  for a period  of ten (10)  years  from the date
         hereof.  Notwithstanding  anything  contained  in this  Release  to the
         contrary,  any Party may disclose the terms of this Release  and/or the
         Original Agreement, to the extent required by law or in connection with
         any financial or other disclosure  obligation,  or if required pursuant
         to subpoena or other court-ordered process, provided that, in the event
         that a Party is served with a subpoena or other court-ordered  process,
         it shall  first  notify  the  other  Parties,  in  writing,  and  shall
         thereafter  not make any such  disclosure  of the terms of the Original
         Agreement  for a  period  of ten  (10)  business  days  following  such
         notification.

                  6. The  validity  of this  Release is subject to that  certain
Side Letter by and among Ocean  Power,  Aquamax,  Keeran,  Hadwaco  Ltd. Oy, and
Balantun Oy (Newco),  dated 20 July,  2001.  If the  circumstances  described in
paragraph 1 of the Side Letter come to pass, then this Release shall be null and
void and of no effect.

OCEAN POWER CORPORATION

By:    /s/ Philip Johnson
       ---------------------
Name:      Philip Johnson

Title:     VP Ocean Power
       ---------------------

Date:      20 July 2001


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AQUAMAX (INTERNATIONAL) HOLDING B.V.

By:    /s/ Rainer Sjostrom
       -------------------
Name:      Rainer Sjostrom

Title: ___________________

Date:      20 July 2001
       -------------------


KEERAN CORPORATION N.V.

By:    /s/ Rainer Sjostrom
       -------------------
Name:      Rainer Sjostrom

Title: ___________________

Date:    20 July 2001
       -------------------