Carnegie Wave Energy : Perth Wave Energy Project Update

• Perth Wave Energy Project nears commissioning and operation phase

• Good progress on assembly and pre-installation testing activities

• Final commissioning after winter in optimum deployment conditions

Progress on the assembly and pre-deployment testing is continuing at BAE Systems in Henderson south of Perth and at Carnegie's onshore project site at Garden Island in Western Australia. Current assembly and testing has been focused on the buoyant actuators, pumps, energy relief system, tethers, connectors and hydraulic pods, as well as the installation and testing of instrumentation equipment across all components of the plant and is progressing well.

Planned system commissioning will now not take place at the end of Quarter 2 in the interest of installing and commissioning the system in the optimum post-winter weather period. This also allows an extended period of pre-deployment testing prior to CETO unit installation.
Carnegie's Managing Director and Chief Executive Officer, Dr Michael Ottaviano said, "It's important that the CETO 5 system is successful when installed. We need to be in a
position to anticipate and respond quickly to the inevitable fault finding that will occur when you install a wave energy unit for the first time. Carrying out this sort of operation in winter could incur unnecessary risks.
Taking some extra time now will pay off once we are in the water and operating. There are too many examples in our industry where appropriate care hasn't been taken at this stage of a project's construction and Carnegie can learn from this."
The extension of the assembly and pre-installation testing phase will likely continue through the southern hemisphere winter which will allow CETO unit installation and any initial fault finding to occur outside of the larger winter swells. The availability of suitable weather windows is constrained in winter by consistent large swells. These reduce significantly in September and October, thereby increasing the opportunity and lowering the risk for any required intervention.

About Carnegie

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.

About CETO

The CETO system is different from other wave energy devices as it operates under water where it is safer from large storms and invisible from the shore. The technology is capable of generating power onshore or offshore depending upon the specific characteristics of a project site.

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.

Perth Wave Energy Project ('PWEP') Fact File

• 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.

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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