The State Government of Western Australia has elected to terminate Carnegie’s Financial Assistance Agreement for the Albany Wave Energy Project , the company said on Tuesday.
The company said it is disappointed with this decision as the State Government were provided with a revised project funding plan in February which outlined Carnegie’s plans to deliver the Albany Project over an extended timeline and with a reduced budget.
According to the company, the changes presented in the funding plan would:
– Enable Carnegie to optimise the project spend profile in order to reduce the amount of research and development (R&D) Tax Incentive cash rebates that would be lost under the proposed changes to the R&D tax incentive;
– Provide additional time to incorporate a number of design innovations into the CETO unit to be deployed in Albany. These innovations would reduce the capital cost of the project and the
long term levelised cost of energy of the CETO technology, a key driver of Carnegie’s technology development pathway.
“This significant new development must now be incorporated into the strategic review currently underway,” Carnegie said.
The company said it will update the market in due course.