Carnegie Wave Energy has formed an alliance with Energy Made Clean (EMC) which will focus on the delivery of a combination of renewable technologies in the form of microgrids to islands, off-grid and grid-connected communities.
Through Carnegie’s Au$4.5 million ($3.4 million) investment in EMC, composed of Au$1.5 million in Carnegie shares and Au$3 million in cash, the Australian wave energy developer will acquire 35% stake in EMC, a Perth-based developer of solar and micro-grid operations.
The alliance between the two companies will see them share resources, skills and expertise to bring a wider range of renewable energy offerings to the Australian and international markets, with the joint focus on the delivery of a combination of technologies such as solar, wave, wind and energy storage in the form of microgrids.
Carnegie’s CEO, Michael Ottaviano, said in addition to the joint microgrid focus, Carnegie’s investment in EMC would also accelerate the commercialisation of CETO in island markets and give the organisation a stake in a business operating in a rapidly growing market.
“The global microgrid market is estimated to be worth $40 billion by 2020, up tenfold from 2013,” said Ottaviano. “Our strategy for island markets is to deliver CETO as part of an integrated microgrid solution. Having already won and kicked off a package of work in Mauritius, including the delivery of a wave-integrated microgrid, I’m delighted to have EMC on board to assist in the delivery of this project.”
Carnegie will become a party to the EMC shareholders agreement and have a seat on the board of directors, the company informed. The Au$1.5 million of Carnegie shares will be escrowed such that 80% of them cannot be sold within the first 12 months.