The Carnegie Wave Energy CETO

Wave Energy Project

-Progress towards Commercialisation

Dr Laurence Mann
Research and IP Manager
Carnegie Wave Energy Limited.
October 2009

© 2009 Carnegie Wave Energy Limited

 Carnegie Wave Energy Ltd – who we are

• Australian-based ‘CETO’ wave energy developer

• ASX li t d (CWE)
ASX-listed
• $100m Market Cap
• 20 staff
• Headquarters in West Perth, Western Australia
• Wave Energy Research Facility in Fremantle, WA
 Carnegie – what we do

• Develop & commercialise

proprietary ‘CETO’ wave
technology

• Build, own & operate CETO wave

Build
power stations

• Licence CETO wave technology to

third parties

• Sell services and equipment to

CETO wave power stations (in
f t )
future)
CETO – technology overview
CETO – zero-emission power & freshwater
Wave Energy – abundant, high capacity, predictable

• Energy in the ocean swell generated by large offshore

storms

(not tidal energy which originates from gravity between

the Earth & Moon)

• Located near load centres – no costly transmission (60%

of the world’s population lives within 60km of the coast)

• Abundant – global wave resource is 2TW (2 million MW)

or twice the world’s power consumption (World Energy
C
Council)
il)

• High availability of resource at best sites globally - less

intermittent and more p
predictable than wind or solar
 Wave Resource and Market Drivers

• Australia
o 500,000 MW of wave resource
o CETO considered pre-eminent wave technology
o Government Funding: $500m for renewable energy &
$1bn desalination
o 20% by 2020 Renewable Energy Target & Emission
Trading by 2011
Wave Energy– a global resource

– Power consumption grows…

Wave Energy Resource – average annual MW/km of wave front

(this is not tidal energy)
Wave Energy – global & untapped
Southern Wave Energy Engine
Wave Energy– January 2008
Wave Energy– July 2007
 Wave Energy – major energy companies involved

The enormous potential of wave energy is now increasingly recognized by

governments, corporations and investors worldwide…

Shell take stake in wave

energy company
Scotland aiming to become "Saudi
Arabia of marine energy”
gy ((Scottish 1st Minister))
“Iberdrola Renovables “GE Invests in Wave Energy”
begins tests on wave
energy plant” “EDF Energies Nouvelles
signs wave energy agreement”

“There is no doubt that marine power will be an

important pillar of future energy portfolios….”
Helge Daebel,
Daebel Emerald Technology Ventures
Chevron buys into
“Aquamarine and Airtricity to develop 1 GW of wave and tidal”
wave energy
Portugal Opens Pioneer Wave Power Plant

“Investec funds $250m for Carnegie wave power project”

Wave Energy – Technology Overview
Wave heights and the location of Australian wave sites suitable for
base-load power generation (Class A wave regimes)
Australia’s Baseload Wave Energy Resource
 CETO – how it is different

• Simple – no power generation

equipment offshore

• No visual impact – fully submerged

• Enhanced storm survivabilityy –

fully submerged and storm relief

• Zero-emission freshwater co-

production possible

• Minimal environmental impact

• Offshore: Single moving part –

low maintenance

• Onshore: Off the shelf power and

water production components
 CETO – technology overview

• BA – proprietary design and core knowledge

with respect to dynamic response and energy
release

• Tether – provides flexible link between BA

and pump. Tension member engineering
group providing specialist input.

• Pump – Custom engineered in conjunction

with specialist hydraulic cylinder
manufacturers.
manufacturers

• Attachment – Designed and manufactured

byy advanced manufacturing
g and p
production
engineering group

• Foundation – designed, based on site

specific sea
sea-bed
bed substrate composition
composition, by
subsea engineering and deployment experts.
CETO – technology development timeline

1999 - 2003
Concept
p
Development
9 Scale models & wave tank testing

2003 - 2006
P
Proof
f off C
Conceptt 9P
Prototype
t t producing
d i zero-emission
i i
power and desalinated water

2006 - 2008
Pilot Plant 9 Multiple, commercial design
units generating power

2008 - 2010 • Commercial scale

Commercial demonstration –
Demonstration starts in November
2009
R&D Facility - Fremantle, Western Australia

Perth city Fremantle

CETO onshore facility

CETO offshore test area
R&D Facility - Fremantle, Western Australia

CETO onshore facility

CETO offshore test area
2004 – CETO I Deployment (underwater laboratory)
2003-2006 -CETO I

Schematics Location

Pipeline to shore
2007 –Design Validation
2006/2007 – Virtual Ocean & Computational Design
2007 – Wave Rider Buoy for Design Validation
2006 – Power Production
2008 – CETO 2 Deployment
 Business Model - license fees plus project
j returns

• Projects undertaken on build, own and operate basis via

special purpose company
• Projects will pay a license fee to Carnegie plus a dividend in
line with any equity stake
• Licensee projects in non-core markets or where other parties
benefit from a lower cost of capital – e.g.
e g utilities
 EDF EN - CETO licensee & JV partner
p

• Northern Hemisphere licensee of CETO

• P
Pays Carnegie
C i capex license
li ffee/project
/ j t

• Carnegie retains right to participate in Northern Hemisphere

p j
projects

• EDF EN has over 2,200 MW of installed renewable capacity in

operation and another 1,000 MW under construction

• generated A$130 million earnings on A$1.8 billion revenue in 2008

• 50% owned subsidiary of the EDF Group - one of the largest power
generation companies in the world

• EDF has over 120,000 MW, 38 million customers and 160,000 staff
& generated A$9 billion earnings on over A$120 billion revenue in
2008
 Investec – Australian Financing
g Partner

• Heads of Agreement to fund up to $250 million of first large scale

project with Investec Australia - subject to certain conditions

• Investec has pre-emptive investment rights on subsequent

Australian grid connected projects for 3 years

• Carnegie retains equity participation rights

• Projects to be developed in Special Purpose Company

• j
Projects will p
pay
y Carnegie
g a license fee/project
p j p
plus dividend

• Investec Australia is subsidiary of Investec International - $4.4

billion market capitalisation listed on LSE & JSE

• Investec is rated Baa1 by Moody’s Investors

CETO – project development timeline

2006 - 2008
Site
9 WA & Victorian wave research licenses
Identification 9 WA,
WA SA & VIC project
j t sites
it awarded
d d

2008 - 2009 9 $12.5 million WA Govt grant for 5MW project

Project Pre- 9 MoU with Dept of Defence for Garden Island
Development 9 $250 million Investec HoA for 50MW project
9 French & Canadian Govt grants ($7million)
• Australian Govt grant application for 50MW
2010 - 2011 project
Small Scale • 5MW Power Offtake
Commercial Demo • 5MW in WA

2011 - 2013
Large Scale • 50MW Australian project
Project • 10-20MW international
50MW Commercial Project
 Vancouver Island

• Pacific Coastal Wave Energy Corporation a joint

venture between Renewable Energy Holding Plc Plc, EDF
EN and local company Global Energy Horizons (GEH)
• investigating the potential for CETO wave energy off
the west coast of Vancouver Island in British
Columbia, Canada
• Granted an Investigative Permit November 2008 by
British Columbia’s
Columbia s Ministry of Agriculture and Lands to
conduct a wave energy investigation over an area of
approximately 475 hectares off Ucluelet, Vancouver
Island.
Island
• In April 2009, awarded CAD$2m through British
Columbia’s Innovative Clean Energy (ICE) fund to
develop a wave energy project off Ucluelet.
Ucluelet
 Reunion Island

• La Réunion, an overseas department

p of France in
the Indian Ocean, has announced the funding of a
research and development project with EDF EN to
investigate the potential for Ceto wave energy,

• Includes adaptation and optimisation of the

technology
gy in La Réunion.

• The feasibility of a pilot plant will also be studied.

Final contractual arrangements for €3M of funding
are currently being negotiated.
 Republic of Ireland

• The potential for commercial scale demonstration of the CETO

technology is being investigated at Sustainable Energy
I l d’ (SEI) wave energy ttestt sites
Ireland’s it llocated
t d off
ff Spiddal
S idd l in
i
Country Galway and Belmullet in County Galway.

• Ocean energy initiative funding of €26m is available for

research and facilities, and establishes a feed-in tariff of
€220/MWh for wave and tidal power.

• Ireland has a renewable energy target of 33% by 2020, with an

aim of 500MW of installed ocean energy by 2020 with an
interim target of 75MW by 2012.

• To facilitate this development, ocean energy is currently given

priority for grid access.
 Bermuda
• Renewable Energy Bermuda (REB), a joint venture between REH, EDF
EN and Bermudan based Triton Renewable Energy, have completed
preliminary
p y site investigation
g studies for a wave energy
gy facility
y off the
east coast of Bermuda.

• REB plan to build and operate wave farms in Bermuda using CETO
wave power technology with an initial test site of 2MW to be developed
and subsequently a grid connected 20MW installation.

• September 2008 the Bermuda Electric Light Company Limited (Belco),

as the main supplier and sole distributor of electricity in Bermuda, issued
a Solicitation for interested parties to provide the island with renewable
power supply.
• REB submitted a statement of intent ((SOI)) for a demonstration site of
2MW to be developed and subsequently a grid connected 20MW
installation.
• REB were subsequently notified by Belco in February 2009 that its joint
SoI with Triton has been successful and it expects to move forwards with
development of the 2MW CETO test site in 2010.
 CETO – technology development timeline

2008 - 2010
Commercial • Commercial scale
Demonstration unit deployment

• Single autonomous unit and

associated energy dissipation
and instrumentation
infrastructure
• Verify energy delivery
performance of a single CETO
unit
• Foundation scheduled for
deployment in November 2009
• Stakeholder consultation and
permitting underway
• CETO unit and associated
infrastructure deployment in
Sepia Depression to the West
of Garden Island following on
from mooring deployment
Summary
y

CETO ¾ Advantages compared with competing wave

t h l i
technologies
¾ Expected to be cost competitive with fossil
fuels when deployed at scale

Carnegie ¾ Global owner of CETO IP

¾ Target first revenue generation 2011
¾ Strong
St technical
t h i l tteam focused
f d on
commercialisation

Upcoming ¾ D
Deployment
l t off commercial
i l scale
l unit
it b
begins
i
in Nov 2009
Milestones
 Further Information

• Contact:
Dr Laurence Mann
Research and IP Manager
Carnegie Wave Energy Ltd
Level 1, 16 Ord Street
West Perth WA 6005
AUSTRALIA
+61 8 9486 4466
lmann@carnegiewave.com

• Website: www.carnegiewave.com