A two-dimensional time-domain, potential-theory-based fully nonlinear numerical wave tank (NWT) was developed by using boundary element method and the mixed Eulerian-Lagrangian (MEL) approach for free-surface node treatment. The NWT was applied to prediction of primary wave energy conversion efficiency of a bottom-mounted oscillating water column (OWC) wave power device. The nonlinear free-surface condition inside the chamber was specially devised to represent the pneumatic pressure due to airflow velocity and viscous energy loss at the chamber entrance due to wave column motion. The newly developed NWT technique was verified through comparison with given experimental results. The maximum energy extraction was estimated with various chamber-air duct volume ratios.