NOVELTY - The wave energy converter (10) has two floats (11,12) and a spar (13) mated with a motor housing. Each float is rotational about a central longitudinal axis, and is coupled with each power take-off via drive shaft oriented along the central longitudinal axis. The power take-offs, preferably low-speed, high-torque direct driven rotary generators, are mounted within the motor housing. The bottom of the spar extends to the body of water.    USE - Wave energy converter for extracting energy from both heave and surge energies contained in ocean waves, and producing power by converting extracted energy into electricity.    ADVANTAGE - The wave energy converter allows for twice the energy extraction potential of other systems that only extract energy from heave motion in waves, since the converter can extract energy from both heave and surge motions. Cost-effective and efficient wave energy conversion is possible by preferably using high-torque, low-speed direct driven rotary generators. Since size reduction of converter of up to half the size of an existing converter with the same power rating is possible, reduction in capital costs and energy costs can be realized. Operating and maintenance costs are reduced by the system's operational design which uses minimal moving parts. The moving parts are made to move fluidly to reduce effect of snap loading. Increasing the speed of body motions helps to reduce generator capital costs. Reliability is improved and survivability is ensured by eliminating all intermediate conversion stages. Fluid motion of the converter in an ocean environment reduces structural loading and mooring loading, and accommodates for tidal variation. Power extraction efficiency may be raised, while system performance may be optimized and stabilized, by proper orientation of floats and their rotation axes with respect to the incoming wave front.    DETAILED DESCRIPTION - An INDEPENDENT CLAIM is also included for a method for generating power.    DESCRIPTION OF DRAWING(S) - The drawing shows the isometric view of a wave energy converter.    Wave energy converter (10)    Floats (11,12)    Spar (13)    Heave plate (14)    Bearing shaft (16)