Carnegie shares rise on Water Corp contract

27/08/2013 - 14:43

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Carnegie Wave Energy chief Michael Ottaviano.

Carnegie Wave Energy shares have continued their strong run this week, gaining nearly 10 per cent on the ASX today after the renewable energy firm announced a new cooperation agreement with the Water Corporation.

Carnegie said the agreement would allow the Water Corp to provide support on Carnegie’s wave-powered seawater desalination pilot plant, which is part of the Perth Wave Energy Project.

The project will be the nation’s first commercial scale, grid-connected wave energy development once complete, and it is supported by $13.1 million in federal government funding.

The state government has also provided $7.3 million for the project’s construction.

Once complete, Carnegie’s facility will provide clean and renewable energy to the HMAS Stirling naval base on Garden Island.

Chief executive Michael Ottaviano said today that the company was pleased to have the Water Corp’s support for the world-first project.

Water Corporation chief executive Sue Murphy said seawater desalination was an important part of Perth’s long-term water supply solution.

“Carnegie’s wave powered seawater desalination technology offers a novel and promising approach to achieving desalinated freshwater with zero greenhouse gas emissions,” Ms Murphy said in a statement.

Carnegie shares gained 11.5 per cent on the ASX today, to finish at 6.8 cents, a 12-month high. That rise followed a 10.9 per cent gain yesterday.

The company’s shares were trading as low as 2.8 cents per share midway through June.

Carnegie also received a speeding ticket from the ASX earlier this month, after a recent uptick in the volume of its shares changing hands.

At the time, Carnegie said the increase in trading was due to significant recent progress on its wave energy project, including securing $2.7 million in government grants and placing nine of 10 major supplier contracts.

Stockbroker Patersons Securities also upgraded Carnegie to a 'buy' rating earlier this month.

 

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