SA wave project may stay afloat as debts sink developer Oceanlinx

SOUTH Australia’s $7.2 million effort to harness energy from waves may stay afloat despite project developer Oceanlinx sinking under debts of more than $10 million.

SOUTH Australia’s $7.2 million effort to harness energy from waves may stay afloat despite project developer Oceanlinx sinking under debts of more than $10 million.

Receivers and administrators have been appointed to Oceanlinx which has Macquarie Bank as a major secured creditor and at least 60 unsecured creditors, including South Australian companies that helped build its 3000-tonne concrete prototype at Techport in Adelaide.

Oceanlinx’ GreenWave project, funded partly by a grant from the Federal Government’s Australian Renewable Energy Agency and the Australian Research Council, is already in troubled waters after a failed launch in early March.

The prototype unit with a turbine and number of electrical components and sensors was being towed from Port Adelaide to a site at Port Macdonnell when its supporting airbags were seriously damaged.

It is now in shallow waters off Carrickalinga.

The award-winning one-megawatt “wave energy converter” - the most powerful such unit in the world and capable of powering about 1000 households - was a culmination of 16 years of research and development by Oceanlinx.

The project, showcased to Prince Charles on his visit to South Australia in November 2012, was to be lowered onto the seabed and connected to the grid by sub-sea cable.

Receivers KordaMentha were appointed to Oceanlinx by major secured creditor Macquarie Bank last week.

While receivers usually look at liquidation of assets to recover outstanding dues, KordaMentha may consider completing the project to secure better returns, sources close to the matter told The Advertiser.

KordaMentha is undertaking a similar exercise with its receivership of Gunns Timber Plantations.

KordaMentha receiver Rahul Goyal said it was too early to outline the strategy and the immediate priority was “to work with the South Australian and NSW governments to alleviate any safety concerns”.

“The company suffered financially after an incident at sea delayed the final installation.

“This caused delays in funding which was dependent on meeting installation deadlines,” Mr Goyal said.

Oceanlinx’ maiden project in NSW also attracted Federal funds, but is rusting in waters off Port Kembla.

Administrators Hall Chadwick’s first meeting with unsecured creditors, mostly private investors and research organisations, is due tomorrow.

Hall Chadwick’s David Ross said he hoped the project could be completed to deliver better outcome for creditors.

Oceanlinx managing director Ali Baghaei was unavailable for comment at the time of publishing.