Australia: Carnegie Makes Progress on Commercial Demonstration Project
- Business & Finance
During the quarter Carnegie Wave Energy Limited made significant progress on its commercial demonstration project, the Perth Wave Energy Project.
In addition, Carnegie continued to make technical and commercial progress on its proprietary CETO wave energy technology and commercial site development. Highlights from this quarter include:
- $9.9m in grant funding from the Australian Government’s Emerging Renewables Program (ERP) for the Perth Wave Energy Project which complements the existing $5.5m funding from the Western Australian State funding through the Low Emissions Energy Development Fund (LEED);
- Australian Prime Minister, the Honourable Julia Gillard visited Carnegie’s private wave energy research facility to announce the signing of an electricity supply and grid connection agreement for the Perth Wave Energy Project between Carnegie and the Department of Defence.
- Advancing the detailed design stage of the Perth Wave Energy Project, on track for completion by the end of 2012.
- Welcoming highly experienced cleantech investor, 88 Green Ventures (Australia), as a substantial shareholder.
- Completing a year-long Bermuda wave study that demonstrates the viability of the Island’s wave regime for a commercial CETO wave energy project.
Carnegie’s main focus remains the design and delivery of its first grid connected demonstration project, the Perth Wave Energy Project.
$9.9m Australian Government Grant for Perth Wave Energy Project During this quarter, Carnegie announced a $9.9m grant from the Australian Government’s Emerging Renewables Program (ERP) to support the Perth Wave Energy Project. This is Carnegie’s first grid-connected CETO wave energy project and will be located at Garden Island in Western Australia. The Australian Government grant complements existing grant funding for the Project from the Government of Western Australia’s LEED Program.
The Project will be 1 to 2MW in capacity and, based on the recently completed preliminary design, is expected to cost $31.2m. The combination of State and Australian Government funding allows the Project to proceed with approximately 50% Government funding. Both the ERP and LEED funding are milestone based and are paid in arrears as project milestones are met. Carnegie will fund the balance of the Project.
Detailed design is now underway, part of which includes applying for and all Government approvals required for the construction and operation of the Project as well as carrying out further formal community consultation. Construction and commissioning of the Project is scheduled to occur in 2013 with first power due for delivery into the grid at the end of 2013. Further details of the Project will be released as the detailed design and approvals process proceeds. The Project will deliver Carnegie its first power sales revenues through the sale of the electricity to the Australian Department of Defence.
Offshore WIND staff, July 30, 2012; Image: carnegiewave