Western Australian wave developer Carnegie Wave Power has bought a 35% stake in Perth microgrids company Energy Made Clean in a transaction worth A$4.5m.
The agreement will see Carnegie invest A$3m in cash and $1.5m in shares. Carnegie said the two companies would form an alliance to share resources to increase its range of renewable energy offerings to the Australian and international markets.
The companies will combine solar, wave, wind and energy storage in the form of microgrids to islands, off-grid and grid-connected communities.
Carnegie chief executive Michael Ottaviano said the investment in EMC would accelerate the commercialisation of CETO wave technology in island markets.
“We will now have the capability to finance, construct, own and operate commercial scale wave-integrated renewable microgrid solutions globally,” he said.
EMC’s turnover is likely to exceed $15m in turnover this financial year, up from $5m in 2014/15, Ottaviano added.
Carnegie will have a seat on EMC’s board of directors. The Carnegie shares will be escrowed such that 80% of them cannot be sold within the first 12 months.
The transaction is subject to some conditions precedent including the approval of EMC shareholders which will be voted on at an EGM within 30 days. The transaction is expected to be completed within 15 days of that meeting.
Image: Ceto 5 at Perth project (Carnegie)
