Commercial Scale CETO 3 Installed and Operating

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    ASX Announcement

    20th

    April 2011

    Commercial Scale CETO 3 Installed and Operating

    Commercial scale CETO unit successfully installed and operatingand producing power off Garden Island

    Performance data being collected and transmitted to West Perthcontrol room for analysis

    Performance meeting all expectations with further results tofollow

    Wave energy developer Carnegie Wave Energy (ASX: CWE) is pleased toadvise that its commercial scale CETO 3 unit has been successfullyinstalled offshore from Garden Island in Western Australia and isproducing power in lines with expectations.

    The CETO Buoyant Actuator during the installationprocess The fully submerged commercial scale CETO unitin operation next to deployment barge

    Installation of the CETO system has taken place offshore from Australiaslargest naval base on Garden Island in Western Australia. The final step, theconnection of the buoyant actuator (BA) to the balance of the CETO system,occurred over the weekend. The system was immediately energised and isproducing hydraulic power exactly as expected.

    Carnegies Managing Director Dr Michael Ottaviano said,

    This is the most significant milestone in Carnegies history and follows morethan 5 years of in-ocean testing of scale CETO prototypes. It now allows us to

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    plan our project pipeline roll out with confidence. Carnegies CETO technology

    was already the only wave technology to have produced desalinated water; itis now the only commercial scale wave unit ever deployed and operated inAustralia and the Southern Hemisphere.

    Id like to thank all of Carnegies team which has put in a tremendous effortover the last 18 months and, in particular, the last 3 months. Their effort, alongwith our key contractors, has allowed us to achieve this major milestone safelyand effectively. Additionally, were grateful for the support of the StateGovernment of Western Australia through the LEED grant program and theAustralian Department of Defence. Dr Ottaviano said.

    The CETO units data acquisition and remote control system is also operatingto design and allows the collection and transmission of performance data andcomplete system control in real-time from the CETO control centre in WestPerth. Carnegie engineers are manning the centre around the clock toconduct power optimisation trials and monitor performance as well as carryingout detailed data analysis.

    Carnegie expects to have analysed performance data within 6 to 8 weeks andwill retrieve the CETO unit on completion of the primary testing period forvisual inspection.

    In parallel with manufacture, design and installation activities, Carnegie hasbeen developing the design of a small scale, grid-connected 2 to 5MWdemonstration project. A finalised conceptual design is now complete andwork on the detailed design will commence shortly.

    Further images and video of the installation and operation are included belowand can also be found on Carnegies website www.carnegiewave.com

    Buoyant Actuator being off-loaded prior toinstallation CETO unit operational off Garden Island just afterinstallation

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    CETO pump and attachment undergoing verticaltesting at Fremantle prior to installation

    CETO pump and attachment being deployed offthe barge

    About the Perth Wave Energy Project

    Carnegies Perth Wave Energy Project is located offshore in the ocean betweenGarden Island and Five Fathom Bank at a depth of approximately 25 metres. Upon

    completion, it will be Australias first commercial scale wave energy project.

    The primary aim of the project is to demonstrate the CETO technology in commercialoperation. The project site could also be a base for a desalination pilot projectutilizing Carnegies CETO technology.

    About CETO

    The CETO system distinguishes itself from other wave energy devices by operatingout of sight and being anchored to the ocean floor. An array of submerged buoys istethered to seabed pump units. The buoys move in harmony with the motion of the

    passing waves, driving the pumps which in turn pressurise water that is deliveredashore via a pipeline.

    High-pressure water is used to drive hydroelectric turbines, generating zero-emissionelectricity. The high-pressure water can also be used to supply a reverse osmosisdesalination plant, replacing greenhouse gas emitting electrically driven pumpsusually required for such plants.

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