Australian Wave Energy Project Gets Government Boost

In spite of back tracking on its renewable energy commitments, the Australian Government has granted A$11 million to Carnegie Wave Energy’s first CETO 6 Project to be located at Garden Island, Western Australia, in addition to Clean Energy Finance Corporation $20m loan facility. Read More

Carnegie wins $11m ARENA boost

30 June 2014

The Australian Renewables Agency announced $11 million funding to support the next step in the $46 million Carnegie Wave Energy’s CETO 6 wave technology.

The CETO 6 technology is the commercial version of Carnegie’s CETO 5 prototype, with three units off Garden Island in Western Australia expected to deliver 3MW capacity, providing grid-connected power for a nearby Navy base.

“The $46 million CETO 6 project represents the next generation of Carnegie’s landmark wave technology and is expected to deliver energy at approximately half the cost of CETO 5,” ARENA chief executive Ivor Frischknecht said.

Mr Frischknecht said the technology aimed to be cost competitive with fossil fuels in “in certain markets when deployed in large-scale projects”.

“CETO 6 also allows for offshore power generation, which could enable additional applications for the technology operating further from shore, in deep water,” he said.

The CETO units are large, fully submerged buoys, tethered to the ocean floor and designed to harness energy from the ocean’s waves, with the latest version expected to deliver four times the capacity of the CETO 5 units.

Carnegie also has a $20 million loan with the Clean Energy Finance Corporation as part of its project, and has raised $70 million in private money over 10 years.

$11m Government Grant for Australian CETO 6 Project

 $11m Australian Government grant awarded to Carnegie for $31m CETO Project

 Carnegie’s first CETO 6 Project to be located at Garden Island, Western Australia

 $11m grant is additional to Clean Energy Finance Corporation $20m loan facility

 Power from Project to be bought by the Australian Department of Defence

Wave energy developer Carnegie Wave Energy Limited (ASX: CWE) is pleased to  announce the award of a new $11m Australian Federal Government grant to support  Carnegie’s next wave power project.

The $11 million grant will be received from the Australian Renewable Energy Agency’s  Emerging Renewables Program. This is matched by the $20m five year loan facility from  the Clean Energy Finance Corporation previously announced in March this year.

The securing of this combined funding now allows Carnegie to confirm Garden Island  as the location of its first CETO 6 project. All the power generated from the project will  be bought by the Australian Department of Defence under Carnegie’s existing power  supply agreement for use at HMAS Stirling, Australia’s largest naval base which is  located on Garden Island.

Impression of the CETO 6 Project

The CETO 6 Project (Project) will consist of three CETO 6 units deployed off the coast  of Garden Island and connected to the Western Australian electricity grid. Electricity  generated from the Project will be sold to the Australian Department of Defence under  Carnegie’s existing power supply agreement. The Project will be up to 3MW in capacity and, based on the recent design work, is expected to have a total cost of $31m including design and contingency but excluding corporate payroll and overheads. Design work on the Project has been underway since 2013.

The CETO 6 unit in the Project has a target power capacity of 1MW (1000kW), some four times the current CETO 5 generation being used in the Perth Project. The increased apacity, combined with superior efficiency, delivers significantly reduced power costs and, when deployed at large commercial scale, aims to be cost competitive in a range of markets globally. The CETO 6 design builds on a decade of experience gained in previous generations including the design and manufacture of the current CETO 5 units.

Carnegie’s Managing Director and Chief Executive Officer, Dr Michael Ottaviano said, “This grant funding represents a crucial element of the CETO 6 Project and we are delighted to have achieved this outcome at this time. In a globally competitive environment this gives us the confidence to move forward quickly and efficiently with the commercialisation of our CETO technology. Carnegie is grateful for the ongoing support of the Australian Government.”

The current primary focus of the Company remains on the commissioning and operation of its Perth Project, however, given the lead times inherent in developing projects, it is important that the CETO 6 Project and associated financings are progressed in parallel with the Perth Project. The Perth Project utilising the CETO 5 technology has progressed up to the point of commissioning and an update on CETO 5 Perth Project will be made shortly.

About Carnegie

Carnegie Wave Energy Limited is an Australian, ASX-listed (ASX:CWE) wave energy technology developer. Carnegie is the 100% owner and developer of the CETO Wave Energy Technology intellectual property.

About CETO

The CETO system is different from other wave energy devices as it operates under water where it is safer from large storms and invisible from the shore. The technology is capable of generating power onshore or offshore depending upon the specific characteristics of a project site.

CETO technology characteristics include:

 Converts ocean wave energy into zero-emission electricity and desalinated water.

 Environmentally friendly, has minimal visual impact and attracts marine life.

 Fully-submerged in deep water, away from breaking waves and beachgoers, and unaffected by

storms.

CETO 6 Project Fact File

 The Project comprises the design, construction, deployment and demonstration of three CETO 6  units in a grid-connected, up to 3MW peak installed capacity wave energy project at Garden Island, Western Australia.

 The CETO 6 Project is supported by $11m in Australian Government funding through the Australian Renewable Energy Agency’s Emerging Renewables Program.

 The CETO 6 Project is supported by a five year $20 million loan facility form the Australian Clean Energy Finance Corporation.

 Utilises Carnegie’s fully submerged and commercially proven CETO wave energy device.

 The clean, renewable energy generated by the Project will be sold to the Australia Department of Defence at Australia’s largest naval base, HMAS Stirling, on Garden Island in Western Australia.

Source:  www.carnegiewave.com