Shares in wave energy and clean technology developer Carnegie Wave Energy have moved up this morning after announcing it had signed a formal licensing and joint venture agreement with northern hemisphere development partner EDF EN.
Shares in wave energy and clean technology developer Carnegie Wave Energy have moved up this morning after announcing it had signed a formal licensing and joint venture agreement with northern hemisphere development partner EDF EN.
The signing of the license is the final step in the purchase process of the CETO intellectual property and global development rights by Carnegie paving the way for joint development of commercial CETO projects throughout the northern hemisphere and Reunion Island.
The CETO system distinguishes itself from other wave energy devices by operating out of sight and being anchored to the ocean floor.
Carnegie retains the right to own up to 49 per cent of each project and each project will pay Carnegie a license fee for the use of the CETO technology.
Yesterday, the company announced it is fully funded for next year, after raising $5.4 million through a heavily oversubscribed share purchase plan yesterday, six weeks after missing out on a major federal government renewable energy grant.
The company said it would put the cash towards testing and deployment of wave energy units in waters off Perth.
Shares in the company were up half a cent, or 3.57 per cent, trading at 14.5 cents per share at 1353AEST.
Full announcement below:
License and JV Agreement Signed
- Carnegie & EDF EN Sign Formal License & JV Agreement
- CETO Wave Technology Acquisition Complete
- Allows the start of joint international project development activities
Wave Energy Developer Carnegie Wave Energy (ASX:CWE) is pleased to announce the signing of the formal CETO Collaboration and Licensing Agreement ('Agreement") with Northern Hemisphere Development partner EDF EN.
The signing of the license is the final step in the purchase process of the CETO intellectual property and global development rights by Carnegie paving the way for joint development of commercial CETO projects throughout the Northern Hemisphere and Reunion Island.
Carnegie retains the right to own up to 49% of each project and each project will pay Carnegie a license fee for the use of the CETO technology.
Carnegie's Managing Director Dr Michael Ottaviano said:
"I'm delighted to have completed the CETO purchase transaction and to be formally collaborating with EDF EN on developing CETO projects internationally. We expect to have further news on international developments in the New Year."
The signing of this Agreement allows the issue of the Carnegie shares to Renewable Energy Holdings Plc ("REH") and its nominees as consideration for the purchase of the CETO intellectual property and development rights and results in REH becoming a 29%
shareholder in Carnegie.
About CETO
The CETO system distinguishes itself from other wave energy devices by operating out of sight and being anchored to the ocean floor. An array of submerged buoys is tethered to seabed pump units. The buoys move in harmony with the motion of the passing waves,
driving the pumps which in turn pressurise water that is delivered ashore via a pipeline. High-pressure water is used to drive hydroelectric turbines, generating zero-emission electricity. The high-pressure water can also be used to supply a reverse osmosis
desalination plant, replacing greenhouse gas emitting electrically driven pumps usually required for such plants.
CETO Technology characteristics include:
- CETO converts wave energy into zero-emission electricity and desalinated water
- CETO is environmentally friendly, has no visual impact and attracts marine life
- CETO is fully submerged in deep water away from popular surf breaks
