WA government pulls plug on Carnegie wave energy plan

A wave energy deal with Carnegie Clean Energy has been cancelled by the WA government after the tide turned on finances.

Two Carnegie Wave Energy CETO units being prepared ahead of towing during the Perth Wave Energy Project in 2016. Picture: Supplied

The McGowan Labor government has pulled the plug on an ambitious wave energy plan on the south coast of Western Australia, after giving $2.65 million to a publicly-listed company for the project.

WA regional development minister Alannah MacTiernan today announced the state government was withdrawing from its deal with Carnegie Wave Energy in the Southern Ocean at Albany, 400km south of Perth.

Carnegie entered an agreement for the wave power project with the McGowan government in September 2017, six months after Labor swept to power on a promise to create hundreds of renewables jobs and power people’s homes with wave energy.

Ms MacTiernan said her government was no longer confident that Carnegie had the financial ability to carry out the work.

She said the company had incurred losses on other projects. Another factor, she said, was the Federal government’s announcement in May 2018 that it would cap tax rebates for companies such as Carnegie engaged in projects that carry out research and development.

Until then, tax rebates of up to $16 million a year were allowed.

An artists impression of Carnegie Wave Energy's CETO 6 wave power concept. Picture: Supplied