Carnegie signs SA wave agreement

Carnegie Corporation has signed a licence agreement with the South Australian government to investigate a suitable site for a wave energy project.

South Australian Premier Mike Rann said the agreement is great news for industries looking to buy sustainable energy.

The three-year licence, signed off today, will allow Carnegie to install a few wave riding buoys to test the power of the waves, with a view to building a demonstration 50 megawatt wave power station in the state's southeast.

Having already piloted fully-submerged wave power technology in Western Australia, a 17,000-hectare section of seabed adjacent to Port MacDonnell in SA will become Carnegie's third site of investigation in Australia.

"Whether this is the right site will depend on these tests, but Carnegie is one of several emerging companies taking up the challenge of providing a new form of base-load sustainable energy," Mr Rann said.

"This is great news for climate change.

"It's great news for industries that will be looking to buy clean, green sustainable energy."

The deal marks the signing of the state's first wave power licence and joins a long list of other renewable energy sources being explored in SA.

Having previously welcomed wind, geothermal and solar energy, Mr Rann said the state was on track to reaching its target of a 20 per cent increase in the generation of renewable energy by 2014.

"This would put us in a world leading position," he said.

"Southern Australia is said to have one of the world's best wave energy resources and the potential for this energy technology will help maintain our leadership.

"Our message to these companies is that the SA government will do all it can to open the way for renewable energy investment in the state."

Carnegie's announcement is below:

Wave Energy Developer Carnegie Corporation Limited (ASX: CNM) is pleased to announce the signing of a License Agreement with the Government of South Australia to investigate a suitable site for the development of a wave energy power project. The License Area covers approximately 17,000 ha of seabed adjacent to Port MacDonnell near Mt Gambier in the State's South-East. A wave project developed at this site has the ability to be connected into the National Electricity Market which supplies power to the majority of Australians.

Carnegie Corporation's Managing Director Dr Michael Ottaviano said; "We are delighted to have secured a further option for the location of our commercial demonstration project in addition to our Western Australian sites. The South Australian coast receives a world class wave energy resource and further adds to South Australia's leadership in developing renewable energy including wind, solar and geothermal."

The License Term is for 3 years with a further 3 year right of renewal and allows the Minister for Energy to grant a life of project lease at any time during the license period.

The license area covers an area of seabed extending from just west of Douglas Point to Danger Point and extending out 3 nautical miles.