CETO 6 Project reaches financial close

Carnegie has reached a financial close on the Clean Energy Finance Corporation’s (CEFC) five-year USD 15.6 mln loan facility for partial funding of the project.

The funding will reduce the amount of equity required for the project. Australian Renewable Energy Agency (ARENA) has provided USD 8.6 mln grant for the project as well.

Aidan Flynn, Carnegie’s Chief Financial Officer, said: “Reaching financial close on the CEFC facility is a watershed moment for Carnegie as this is the first time ever that Carnegie has achieved a pure debt finance deal. It now gives Carnegie the certainty of capital and cash flows to build this important commercial version of the CETO technology. Not only does the financial close pave the way for this project to happen it also importantly paves the way for project finance for subsequent CETO projects.”

Carnegie has also recently been granted a Commonwealth investigation license to undertake the site characterization activities required to finalize the design of the Project.

Additional funding for the CETO 6 Project in the amount of USD 10 mln has been announced by Ian Macfarlane, Minister for Industry and Science.

Following on from Carnegie’s Perth Wave Energy Project, the CETO 6 project site is planned to be located approximately 8 km further offshore from the current Perth Project site, off Five Fathom Bank.

The development of the CETO 6 project officially began in 2013 and is currently in the concept design stage.

The project represents the first demonstration of Carnegie’s CETO 6 technology. CETO 6 unit has the capacity of 1 MW, and the CETO 6 Project is expected to consist of 3 unit array with 3 MW total capacity with a 2017 target demonstration date.

CEFC invests using a commercial approach to overcome market barriers and mobilise investment in renewable energy, energy efficiency and low emissions technologies.

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Image: Carnegie Wave