Carnegie looking at competitive CETO design by end-Q3 2021

The Albany site. Source: Carnegie Clean Energy Ltd

August 12 (Renewables Now) - Carnegie Clean Energy (ASX:CCE) aims to have a CETO design on track to be competitive at future scale with comparable renewables by the third quarter of 2021, according to a presentation released last week.

Having removed the loss-making Energy Made Clean (EMC) solar and microgrid business that dragged it into voluntary administration in March 2019, Carnegie now plans to recapitalise the company and focus on its core operations of wave energy development. As previously announced, this process involves a non-renounceable pro rata entitlement offer launched on August 9 with the goal of securing between AUD 5.5 million (USD 3.7m/EUR 3.3m) and AUD 11.5 million in gross proceeds.

In its recapitalisation presentation, Carnegie unveils that, depending on how much it raises, the company would allocate between AUD 2.2 million and AUD 3.25 million to the development of the latest iteration of its flagship CETO wave energy technology, not including any revenue.

Carnegie will be following a new two-year digital development pathway that uses a less capital intensive, simulation-driven process to achieve shorter lead times to in-water testing. For comparison, the previous strategy revolved around a "highly capital intensive and slow process" that involved heavy engineering and large prototypes.

It starts with the development of a machine learning wave predictor and the identification of a preferred generator technology by the end of the first quarter of 2020. In the second and third quarter of that year, the company will proceed with the development of a machine learning hydrodynamic solver and controller, and with the optimisation of the CETO system architecture. Tank and PTO testing is expected to be conducted through the end of the first quarter of 2021 after which Carnegie hopes to have a complete virtual prototype of the device. If all goes as planned, by the end of the third quarter of 2021 the company will have secured a strategic partnership with a utility partner for the development of pilot and commercial projects.

After the entitlement offer is finalised and the company is relisted on the stock exchange, it will have a simplified balance sheet, with at least AUD 3.85 million of cash at bank and up to AUD 2.825 million in convertible notes due in March 2021.

The offer, which calls for the purchase by eligible shareholders of four new shares for every one share held, will close on September 4.

(AUD 1.0 = USD 0.678/EUR 0.606)

More stories to explore
Share this story
About the author
Browse all articles from Ivan Shumkov

Ivan is the mergers and acquisitions expert in Renewables Now with a passion for big deals and ambitious capacity plans.

More articles by the author
5 / 5 free articles left this month
Get 5 more for free Sign up for Basic subscription
Get full access Sign up for Premium subscription