Carnegie jumps on $12m state investment

Shares in Carnegie Corporation have risen as much as 27 per cent in trade today on the back of the state government investing $12.5 million in the company's new low-emissions power station off the coast of Albany.

Carnegie's share price jumped 4.5 cents to a high of 21c before closing at 18c today.

Environment Minister Donna Faragher and Energy Minister Peter Collier said today the funding from the Low Emissions Energy Development fund would enable Carnegie to develop the first two stages of a 50 megawatt power station by 2013.

This would include the commissioning of a five mega-watt facility.

"The funding is subject to the company matching every $1 of Government funds with $3 from elsewhere, which will lead to a direct total investment of $50 million in low-emissions electricity generation in Western Australia," Mrs Faragher said.

Submerged pumping units on the seafloor will collect wave energy in the form of pressurised sea water that would generate electricity from a hydroelectric turbine onshore. The pressurised sea water could be used for desalination using a reverse osmosis unit.

"The Government's investment gives the company a platform to explore the benefits of a commercial scale, wave-powered technology, which has the potential to save 240,000 tonnes of carbon dioxide equivalent emissions a year," Mr Collier said.

Mrs Faragher added the government would finalise contracts with Carnegie Corporation to allow the funds to be distributed once agreed milestones had been reached.

"We are extremely pleased by this announcement which will result in the creation of green investment and jobs in Western Australia and is a major boost for Carnegie's wave powered, commercial demonstration project," Carnegie managing director Michael Ottaviano said.