Eco Investor October 2016

Pre-Revenue Securities

Sri Lanka Opportunity for Carnegie

Carnegie Wave Energy has added Sri Lanka to its growing list of potential island clients with a memorandum of understanding with Lanka Energy Conservation (Pvt) Ltd. The companies will identify opportunities and development paths for commercial wave energy plants and potential microgrids on Sri Lanka. They will look to integrate these into existing or new power infrastructure to supply both clean power and freshwater.

Chairman and managing director of Lanka Energy Conservation (Pvt) Ltd, Dammica Wickramaratne said "Sri Lanka shows good potential for wave, solar and wind energy power. Our population of 23 million is currently powered predominately by a mix of coal, diesel and hydropower with less than 5 per cent being powered by wind and solar. Sri Lanka is also a signatory to the Paris Agreement for Sustainable Energy development."

Carnegie's chief operating officer Greg Allen said Carnegie has made significant progress this year in its entry into small island markets.

While this is true, Carnegie should stop thinking and talking about 'small' and 'remote' islands. Sri Lanka is a good move for Carnegie as it's neither small nor remote. With its large population and high fossil fuel useage, it has the potential for large, ongoing revenue if a project comes good. And its high profile would assist marketing and sales.

Also late last month, the Australian Renewable Energy Agency commited $2.5 million towards Carnegie's Garden Island Microgrid Project near Perth - the world's first solar, battery and wave integrated microgrid project.

The Project will see the construction and installation of a 2 MW solar PV array, and a 2 MW/0.5 MWh battery energy storage system and control system, both integrated with Carnegie's planned CETO 6 wave farm and the existing desalination plant. CETO 6 is the latest, commercial scale version of its technology.

Construction will begin before the end of 2016 and commissioning will be in the first half of 2017. The system will be able to operate in "on-grid" mode in parallel with the WA electricity network and in "islanded" mode, isolated from the grid.

Carnegie's managing director and chief executive, Dr Michael Ottaviano said "The demonstration of this microgrid project will help drive the commercialization of CETO and will be a model we will roll out to island nations around the world."

Although it is still a pre-revenue business, Carnegie is one of the world's leading wave energy developers with numerous world-firsts to its name. It has numerous medium term opportunities underway for the potential development of commercial scale wave energy and microgrid projects.

The latest moves come just in time to help Carnegie's flagging share price, which touched a 10 year low of 2.4 cents. Within days of these announcements, it turned upwards to above 3 cents. (ASX: CWE)





Search Eco Investor