Commonwealth Bank of Australia is to loan Carnegie Wave Energy $20m as part of the financing for the next stage of Ceto 6 wave energy unit’s development and commercialisation.
The deal, which is the first wave energy financing deal with a commercial bank in Australia, also includes a further loan facility of a minimum $1m to part finance the Garden Island Microgrid project.
Carnegie said the $20m will help to make Ceto export ready for the global market.
The financing replaces an existing $20m loan facility Carnegie has with the Australian’s Government’s Clean Energy Finance Corporation.
Carnegie chief financial officer Mr Aidan Flynn said: “This cost competitive capital from the CBA will help Carnegie take a significant step forward in our development and commercialisation of the Ceto technology, including the integration of Ceto into a microgrid with other renewable energy sources. This will put us in a strong position to compete in the global, developing wave energy market.
“We look forward to a strong and ongoing relationship with both Commonwealth Bank and the CEFC with regards to future project and development opportunities both in Australia and overseas.”
Commonwealth Bank general manager, corporate financial services WA Gary McGrath said: “The wave energy sector is an industry of the future with great potential for Australia to be a world leader and exporter of renewable energy technology.
“We are delighted to be the first ever commercial bank in Australia to execute a wave energy finance deal. We’re pleased to support Carnegie and the development of its Ceto 6 Project and Microgrid Project.”
Image: Ceto 5 project (Carnegie)
