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Image of wave array of CETO 6 devices

Carnegie Wave Hub Project Launched with UK DEFRA Minister of State and Cornwall Council

Carnegie Wave Energy Limited (ASX: CWE) formally launched its 15MW CETO Wave Hub Project on Friday November 11 with Mr. George Eustice, Minister of State at the UK Department for Environment, Food and Rural Affairs (DEFRA), the Leader and key Councillor’s from Cornwall Council and Wave Hub. 

Carnegie announced last week a £9.6m (AUD$17m) ERDF grant for the first phase of its Wave Hub Project. Phase 1 of the 15MW Project consists of the design, construction, installation and operation of a single 1MW grid-connected CETO 6 wave energy converter device, adapted to local conditions and industrialised for large scale commercial deployment at the purpose built Wave Hub test site in the UK.

The Project will commence immediately, with commissioning in 2018, followed by 12 months of operations. The launch provided the opportunity to brief Minister Eustice on the 15MW project, and the comprehensive offering Cornwall and the UK provides for wave energy. Phase 2, planned for 2020/21, will deliver a subsequent 15MW commercial array at the same site, offering a commercial return on investment.

Cornwall Council also announced this week that it has concluded negotiations with the UK Department for Business, Energy and Industrial Strategy (BEIS) on the transfer of Wave Hub, along with £14 million of funding and the creation of a low carbon Enterprise Zone in the key ports of Hayle and Falmouth during 2017. Combined, these are designed to put Cornwall at the heart of the emerging Marine Renewables sector.

Cornwall is open for business and, as the new owners of Wave Hub, Cornwall Council will be creating the right environment for the sector to grow and flourish.

Councillor Julian German, portfolio holder for Economy and Culture

Earlier in the week, Carnegie also attended the annual Ocean Energy Europe Conference in Brussels and Carnegie’s Executive Director of Business Development, Kieran O’Brien, presented on the Public Funding Conference Panel.

The Ocean Energy Roadmap, produced by the sector at the request of the European Commission, was handed to the European Commissioner for Environment, Fisheries & Maritime Affairs Mr. Karmenu Vella at the conference. The Roadmap sets out a strategy to deliver 10% of Europe's electricity from wave and tidal energy by the year 2050. This includes the need for a €250 million investment package and a €70 million insurance fund to attract investors and offset risk. 

Ocean energy is not just good news for our climate. It's also great news for job creation. We are speaking about a potential global market of up to €53 billion a year. Thanks to today's roadmap, we have a convincing path for investors to follow.

European Commissioner for Environment, Fisheries & Maritime Affairs Mr. Karmenu Vella

On Wednesday 9th November, the UK government also proposed a £290m budget for the second allocation round of the Contracts for Difference regime. This includes support for wave energy in the form of a strike price of up to £315/MWh. The Auction round opens in April 2017 and will include projects for delivery in either 2021-22 or 2022-23. Carnegie’s 15MW CETO Wave Hub project is proposed for 2021.