03/08/2015 - 13:58

Scotland invests in WA's Carnegie

03/08/2015 - 13:58

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Carnegie Wave Energy's international growth has been boosted after the Scottish government awarded the Perth-based company a $4.3 million grant to develop a wave energy power conversion system.

Scotland invests in WA's Carnegie

Carnegie Wave Energy's international growth has been boosted after the Scottish government awarded the Perth-based company a $4.3 million grant to develop a wave energy power conversion system.

The deal supports Carnegie managing director Michael Ottaviano’s business strategy, which he told Business News two months ago involved the Western Australian business seeking opportunities overseas where more lucrative projects beckoned.

“The challenge for Carnegie when we’re looking at doing projects for Australia is we could do a plant here for $100 million, or we could do the same project in Europe, which would cost the same, but I could sell the power for five times higher than what I’d sell it for in Australia,” Mr Ottaviano said in April.

“That’s pretty hard to compete with, so we have to go where the revenue is highest for us.”

The $4.3 million grant represents about 14 per cent of the total budget allocated by the Scottish government to its renewable energy initiative, Wave Energy Scotland.

The money will be used to develop a power conversion system, called WavePOD, which Carnegie envisions will become part of Carnegie’s first CETO project in the UK in 2018.

CETO is the name for Carnegie’s patented technology – a type of buoy system that delivers high-pressure fluid to turn hydroelectric turbines, all powered by the natural motion of the ocean’s waves.

Carnegie’s wholly owned UK subsidiary, CWE UK, will develop the WavePOD along with Scottish wave developer Aquamarine Power and German-based drive and control manufacturer Bosch Rexroth.

While Carnegie had earlier today requested a trading halt pending an announcement that it said may not come until Wednesday, but it did not take long for it to publish news of the grant.

In response Carnegie shares lifted, trading at 5.2 cents at 1.44pm WST today, up almost 2 per cent.

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