Carnegie raises funds for solar power project

Carnegie Clean Energy has announced plans to raise up to $6 million to fund its share of the development costs of the $20 million Northam solar power project.

Carnegie will raise the funds by way of a share purchase plan priced at 6.7 cents per share, representing a 15 per cent discount to its closing price on Monday.

The raising sent Carnegie shares down by 10 per cent to 7.1 cents each at 11:30am.

Carnegie will use the proceeds of the raising to fund its share of the Northam solar project’s development costs.

The joint venture project between Carnegie and Lendlease was announced to the market yesterday.

“We have dramatically expanded the Carnegie business since we last undertook a share purchase plan in 2015,” Carnegie managing director Michael Ottaviano said.

“We now have the capability to deliver utility scale solar and battery systems alongside our world leading CETO wave energy technology.

“Our more recent move into the build, own and operate model for solar and battery projects creates further diversification and opportunity.

“It is timely that we provide the opportunity for all our shareholders to invest at a discount, and brokerage free, particularly following the unlisted convertible note issue to larger shareholders earlier this year.”

The $20 million, 10 megawatt solar power station is expected to deliver 24,000MW hours of electricity per year.