Carnegie Wave Energy : $1.9m Government Grant Milestone Payments

• $1.9 million milestone payments from Western Australian and Australian

• Payments for progress on onshore plant and completion of foundations for the

Carnegie received $739,862 for completion of two milestones from the Western Australian State Government under its LEED Grant. The milestone payments were awarded for Carnegie's progress on the onshore plant and the completion of the foundations for the Perth Project.

Carnegie has submitted milestone payment claims worth $1,165,921 for the completion of these milestones to the Australian Government under its grant from the Australian Renewable Energy Agency (ARENA) Emerging Renewables Program.

Carnegie Wave Energy Limitedis an Australian, ASX-listed (ASX:CWE) wave energy technology developer. Carnegie is the 100% owner and developer of the CETO Wave Energy Technology intellectual property.

The CETO system is different from other wave energy devices because it operates under water and is anchored to the ocean floor. Several fully submerged buoys are tethered to seabed pump units. The buoys move with the motion of the passing waves and drive pumps. The pumps pressurise water which is delivered onshore via an underwater pipe.
Onshore, 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 or reducing the reliance on greenhouse gas-emitting, electrically-driven pumps usually required for such plants. The technology is also capable of generating power offshore should the specific characteristics of a project site require it.

CETO technology characteristics include:

• Converts ocean wave energy into zero-emission electricity and desalinated water.

• Environmentally friendly, has minimal visual impact and attracts marine life.

• Fully-submerged in deep water, away from breaking waves and beachgoers, and unaffected by storms.

• Upon completion, PWEP will be the first commercial-scale CETO grid and desalinated water connected wave energy project.

• The Perth Wave Energy Project is supported by $13.1m in Australian Government funding through the Australian Renewable Energy Agency's Emerging Renewables Program.

• PWEP is supported by $7.3 million from the Government of Western Australia's Low Emissions Energy Development (LEED) Fund. This is part of a larger $10 million LEED grant, awarded to Carnegie by the Western Australian Government, to support the development of the CETO technology from concept through to completion of PWEP.

• The Desalination Pilot is supported by a $1.27m AusIndustry grant from the Clean Technology

Innovation Program.

• Providing clean, renewable energy and potable desalinated water to Australia's largest naval base, HMAS Stirling, on Garden Island in Western Australia.

The CETO 5 technology being utilised in the Perth Wave Energy Project (PWEP) is configured to utilise the CETO pumps to pressurise water and deliver it onshore via an underwater pipe. Then, onshore, 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 or reducing reliance on greenhouse gas-emitting, electrically-driven pumps usually required for such plants.

The CETO 6 unit will have a 1MW (1000kW) power capacity, some four times of the current CETO 5 generation being used in the Perth Project. It will also have superior efficiency, lower capital cost and reduced maintenance costs for sites where the array is located far from shore or in deeper water. CETO
6 will also incorporate the configuration option for the power generation system to be moved offshore and subsea rather than solely onshore as with the current CETO 5 generation. This option allows CETO to take advantage of deeper, more distant to shore wave resources which significantly increases the size of the commercial market for CETO.

For more information:

Dr Michael Ottaviano
CEO & Managing Director
Carnegie Wave Energy Limited
+61 8 9486 4466 enquiries@carnegiewave.com Website: www.carnegiewave.com

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