Government reconsiders Albany wave milestone payout

The government of Western Australia has taken the previously approved milestone payment for Carnegie Clean Energy’s Albany wave project under careful consideration after the resignation of the company’s long-standing chief executive.

In the light of the recent reports about increasing investor discontent and various other allegations concerning the business activities of Carnegie Clean Energy, reinforced by the recent resignation of Michael Ottaviano from the company’s head position after a decade in the role, the Australian-based developer has faced another setback.

Namely, after Ottaviano’s resignation and the appointment of Jonathan Fievez to the position of the Chief Executive Officer (CEO) of Carnegie, the Western Australian government made a decision to review the previously agreed payment for the first Albany Wave Energy Project (AWEP) milestone, Carnegie informed.

“There was a dispute about the interpretation of the first milestone, and so then there was a settlement on how we would proceed on that, but in light of the sudden changes to the company, we’ve put that on hold and we will be meeting with the board and the senior executive this week,” Alannah MacTiernan, Minister for Regional Development of Western Australia, was reported as saying by ABC News.

Following the minister’s statement, Carnegie informed that a meeting between company’s board and management, and government officials took place on October 2, 2018.

“The parties exchanged information and views. The Minister has taken the Carnegie payment under advisement and the company will be advised further within the week,” Carnegie said in statement.

The previously agreed payment of Au$2.6 million is only a part of the government milestone commitment of approximately AU$5.3 million for the AWEP project.

The project is supported by Au$15.8 million allocated by the Western Australian government, and Au$11.7 million of undrawn funding from Carnegie’s Au$13 million grant from the Australian Renewable Energy Agency (ARENA).

The AWEP site is planned to be used for the introduction of the company’s new wave energy device – CETO 6. The unit has been originally slated for deployment in the 2019/2020 summer weather window.