Carnegie Wave Energy completes $5.8M funding initiative

THE BOURSE WHISPERER: Wave energy developer, Carnegie Wave Energy (ASX: CWE) has completed a $5.8 million funding initiative for the company’s Perth Wave Energy project (PWEP), from a combination of Government and private funding.

Carnegie has secured agreement from the Government of Western Australia for a redistribution of the Low Emissions Energy Development (LEED) grant funding for the Perth Wave Energy project.

The net effect on Carnegie’s Perth project is an increase of $2.26 million in total State and Federal government grant funding to a total of $17.7 million.

Carnegie has already received $2.83 million from the LEED fund for development of its 100 per cent-owned CETO Wave Energy Technology intellectual property.

 

Source: Company announcement

 

In addition to the grant funding, the company has also raised $3.53 million of private capital through a combination of institutional and sophisticated investors, the majority from its existing shareholder registry.

88 Green Ventures, which led the capital raise, has now increased its ownership stake in Carnegie from 6.1 per cent to 9.7 per cent.

As a result, that company’s founder, Mike Fitzpatrick will join Carnegie’s Board of Director’s as a non-executive director.

“Carnegie presents an exciting opportunity to be a major player in the delivery of sustainable clean power and water projects for decades to come around the globe,” Fitzpatrick said in Carnegie’s announcement to the Australian Securities Exchange.

“The scalability of the CETO Wave Energy Conversion system to utility projects presents an exciting opportunity for 88 Green Ventures.

“I am looking forward to a greater involvement in Carnegie as a director as it continues its path through commercialisation to renewable utility scale generation.”

Carnegie said the increased $2.26 million in Government funding into the Perth project will result in a decrease of the same amount in capital the company will need to invest in the project.

Total Government funding into the Perth project is now $17.7 million.

Carnegie indicated the project is on track for completion of detailed design and securing of environmental and Government approvals by the end of 2012 and is scheduled to deliver first power at the end of 2013 with the Australian Department of Defence as the recipient.

“We greatly appreciate the continued support of the State Government of Western Australia,” Carnegie Wave Energy chairman Grant Mooney said.

“I am also delighted to welcome Mike Fitzpatrick onto Carnegie’s Board of Directors.

“Mike has an exceptional background in finance, infrastructure and renewable energy and I look forward to his contribution to Carnegie’s future success.”