Western Australia is an ideal location for wave energy conversion with some of the highest energy density waves in the world. Renewable energy technologies have had an emerging presence in Australia, seen as a vehicle to decarbonise energy generation and provide a sustainable future. This paper examines the environmental and economic feasibility of energy generation from wave energy conversion in Western Australia by undertaking an Eco-Efficiency Analysis (EEA). The environmental impacts of wave energy converters (WEC) were assessed by application of a Life Cycle Analysis (LCA) while the economic performance considered the Life Cycle Costing (LCC). An eco-efficiency portfolio was developed to visualise the sustainability of coastal energy generation options – wave generation, offshore wind and diesel generation – finding that wave generation was the most eco-efficient option and could be deemed a sustainable energy generation technology. The LCA results were comparable to literature, validating the impact assessment. The proposed wave device was estimated to produce a global warming potential of 27.3 kg CO2 eq/MWh and have a levelised cost of energy at 134 $AUD/MWh. The environmental impact of the device was significantly lower than alternative coastal energy generation methods in Western Australia while the associated cost of energy remained competitive. This favourable assessment using the eco-efficiency framework confirmed that the application of WEC in Western Australia would be an eco-efficient option and that research should be undertaken to develop this technology as a key player in the transition to a sustainable energy industry.