This paper describes development of the mathematical model simulating ocean performance of an offshore wave energy point absorber device-AquaBuOY. The AquaBuOY is the next generation of the technology, based on the IPS point absorber system and the hose pump, both of Sweden. AquaEnergy Group Ltd., USA, is developing the system in cooperation with RAMBOLL, Denmark. In March 2003 the Danish Energy Authority awarded a grant for a design study that includes development of the numerical model for the AquaBuOY operation, experimental testing and design optimisation. The scale model tests will be carried out at Aalborg University, Denmark in order to optimise the device design, operation and installation configuration with the goal of minimising system footprint. The paper provides an overview of the numerical modelling used in establishing system operating characteristics. The experimental results from the model tests on mooring forces under survival conditions will be presented during the conference in conjunction with different footprint configurations and different mooring systems. Finally the performance data based on theoretical and experimental results will be presented for the AquaBuOY in five representative generic sea states. Ocean energy and offshore wave energy conversion in the United States is at a significant milestone. During the next year, ocean energy technology developers and energy officials have the potential to deploy pilot scale ocean power plants and transition to commercial plants in the US. This capability comes at a time of increased interest in ocean energies at the National Academy of Sciences and the US Department of Energy. AquaEnergy will conclude its presentation with a brief overview of current legislation affecting the industry. In 2004, ocean scientists, engineers, and developers can continue to lay the groundwork for government spending and interest in ocean energies.