22/03/2016 - 10:02

Carnegie buys stake in EMC

22/03/2016 - 10:02

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North Fremantle-based Carnegie Wave Energy has acquired a 35 per cent stake in solar power and lithium battery storage provider Energy Made Clean through a $4.5 million investment.

Carnegie Wave Energy chief executive Michael Ottaviano. Photo: Attila Csaszar

North Fremantle-based Carnegie Wave Energy has acquired a 35 per cent stake in solar power and lithium battery storage provider Energy Made Clean through a $4.5 million investment.

The wave energy technology developer will invest $3 million in cash and $1.5 million in shares to acquire the stake in Perth-based EMC, with the two companies to form an alliance to share resources, skills and expertise to bring a wider range of renewable energy offerings to the market.

As part of the investment, Carnegie will have a seat on EMC’s board of directors.

The two companies plan to jointly focus on delivering a combination of renewable technologies including solar, wave, wind and energy storage in the form of microgrids to islands, off-grid and grid-connected communities.

“EMC itself is experiencing rapid growth and is likely to exceed $15 million turnover this financial year, up from $5 million in 2014-15,” Carnegie chief executive Michael Ottaviano said.

“Combined with Carnegie’s CETO technology, technical capability, ASX structure, governance and international reach, we will now have the capability to finance, construct, own and operate commercial scale wave-integrated renewable microgrid solutions globally.

“The significant minority investment structure and alliance agreement delivers both parties the benefits of close cooperation with alignment of interests whilst allowing each to focus on their core business – for Carnegie that remains the commercialisation of CETO.”

Mr Ottaviano said the company’s strategy for island markets was to deliver its CETO wave technology as part of an integrated microgrid solution.

EMC managing director John Davidson said the deal would provide the company with capital it needs to fast-track growth and its international reach.

“There are clear synergies between what both organisations are trying to achieve and I look forward to working alongside Carnegie to deliver innovative clean energy solutions globally,” he said.

Carnegie shares were 11.4 per cent higher to 3.9 cents each at 10am.

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