June 9, 2016 For personal use only - ASX · 2016. 6. 8. · ASX Announcement June 9, 2016 Carnegie Presentation at Asian Development Bank's Clean Energy Forum Please find attached

ASX Announcement June 9, 2016 Carnegie Presentation at Asian Development Bank's Clean Energy Forum Please find attached presentation delivered by Carnegie’s CEO Dr. Michael Ottaviano, today at the Asian Development Bank's Clean Energy Forum in Manila. The presentation outlines Carnegie's island and microgrid capability and progress. For more information: Dr Michael Ottaviano Managing Director Carnegie Wave Energy Limited (08) 9335 3993 [email protected] Website: www.carnegiewave.com

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© Copyright Carnegie Wave Energy Limited 2015 1

The delivery of very high penetration

renewable energy microgrids

Carnegie Wave Energy Limited

(ASX:CWE)

Dr. Michael Ottaviano

Chief Executive Officer

15th September, 201

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Commercial in Confidence © Copyright Carnegie Wave Energy Limited 2015 2

The information contained herein has been prepared solely for informational purposes and is not an offer

to buy or sell or a solicitation of any offer to buy or sell any security or to participate in any trading

strategy or to enter into any transaction. If any offer of securities is made, it shall be made pursuant to a

definitive offering memorandum prepared by or on behalf of any fund or other issuer which would contain

material information not contained herein and which would supersede this information in its entirety.

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Company Highlights

• ASX listed owner and developer of world leading “CETO” wave energy

technology.

• 35% stake in and strategic alliance with Energy Made Clean, leading

Australian solar/battery microgrid EPC.

• Dual market focus -

1. Wave energy farms: scaling to 100’s MW in early markets, similar to the

emergence of offshore wind (UK/EU).

2. Islands microgrids: design, financing, EPC and O&M of bankable renewable

microgrids. Later integration of wave to take advantage of wave’s consistency and

lack of footprint.

• CWE team of 45 focused on technology and project origination,

financing and delivery.

• EMC team of 55 focused on microgrid EPC and O&M.

• CWE well capitalized: A$18m cash, A$14m in undrawn Government

grants, $21m undrawn debt facility (31 March 2016).

L-R: Kieran O’Brien (ex ESB), Mike Fitzpatrick (ex

Hastings), John Leggate (ex BP), Jeffrey Harding

(Chairman, ex Pacific Hydro), Michael Ottaviano (MD

& CEO), Grant Mooney (NED, Joint Company

Secretary)

Carnegie team

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Carnegie Recognised as an Innovator

Innovation Excellence Winner,

2014

Program Innovation Winner,

2014Innovation Award Winner, 2016

Top 50 Most Innovative

Companies in Australia, 2016

Top 100 Global Sustainable

Solutions, 2016

Banksia Sustainability Awards,

Innovation Category Finalist,

2016

The Australian Innovation Challenge, Finalist,

Minerals & Energy, 2016

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Carnegie’s dual market focus – Wave energy and Island Microgrids

Commercial focus in two key initial markets:

• Wave energy farms: 100’s MW in early markets similar to the emergence of offshore wind (UK/EU), then islands.

• Island microgrids: deliver mixed, proven renewable microgrids (solar, battery, desal, wind etc) now and then integrate

wave later to take advantage of its consistency (particularly for high RE penetration) and lack of footprint.

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Perth Wave Energy Project – operation, maintenance and performance

The Perth Wave Energy Project CETO 5

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The Perth Wave Energy Project – Garden Island, Western Australia

• Only operational wave farm project in world and only wave

project to operate across 4 seasons

• Demonstrated CETO 5 technology including:

Three wave power units

Power delivery to grid

Wave powered, reverse osmosis desalination

<1 day CETO WEC installation

>14,000 operational hours over 4 seasons and 12 months

• Financed, designed, delivered and operated by Carnegie

• Collaboration across Federal, State, Local Governments and

Department of Defence (landowner and offtaker).

• Measured CETO 5 results confirmed modelled forecasts and

confirm CETO 6 forecasts

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CETO 6 – Commercial Product Platform

• Development based on:

o CETO 5’s in-ocean operational hours and data analysis

o CETO 6 wave tank testing, including University of Plymouth

o 10 years/ $100m of modelling, design, tank testing and large scale ocean testing

o Engagement with UK/EU and Australian supply chain.

• Approx. four times the output of CETO 5

• Power generation inside the buoyant actuator allows more

advanced control capability

• Rapid installation and retrieval (no offshore heavy lifts)

• Electrical export cable delivers power onshore avoids hydraulic

transmission losses

• Tidal range compensation

• Nearshore and more distant to shore wave sites suitable.

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• Garden Island, Western Australia

• CETO 6 demonstration project

• Funded by CWE, $20m CBA debt facility and $11m

ARENA grant

• Commissioning 2017

• Offtake to Australian Department of Defence

• Wave Hub, Cornwall, UK

• Stage 1 Commissioning 2018 (1MW)

• 30MW export capacity in place, upgradable to 48MW

• Tariff support and Government grants/debt available

• Stage 1 FID awaiting EU grant decision

CETO 6 First ProjectsF

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Island Markets – A Large, Complex But Largely Untapped Market

1. At least 400,000 MW of existing thermal installed

capacity that could be replaced with renewable energy.

And with energy consumption growing in developing

nations growing at ~ 8% p.a.

2. About 10% of this or 40,000 MW has a wave resource

in excess of 30kW/m.

3. These islands are not yet ready for a wave system –

require an integrated & demonstrated RE solution.

4. Microgrid solutions can be delivered now and made

“wave compatible” so CETO can be “retrofitted” once

ready into the 40,000 MW market place.

5. And an effective non-wave, microgrid solution opens

up the remaining 360,000 MW (non-wave) market not

currently available to CWE

6. Many islands have RE targets ranging from 15% to

100% and need technical and commercial (financing)

solutions to now deliver on targets.

Total Island global installed

power capacity = 600 GW

Total Island global installed

thermal capacity = 400 GW

40GW thermal

capacity where

wave resource

>30kW/m

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Wave-Integrated Microgrids – Expanding Our Product Offering

• Integration of multiple, proven energy

generation sources

• Enabled by sophisticated control systems

and storage

• CWE & EMC alliance to deliver fully

integrated project: design, finance, EPC

and O&M.

• Desalination allows higher levels of

renewables, as a form of energy storage

• Garden Island Microgrid (GIMG) will be

the world’s first wave integrated

renewable microgrid project.

• Delivering Mauritian wave and microgrid

design project

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NewExisting

Island Microgrid Project #1 – Garden Island, Western Australia

• CETO 6 wave energy project

• Containerised desalination plant

• Existing DOD 2 x 1.3MW diesel generators

To Achieve:

• Very High Penetration Variable Renewable Energy (VRE) microgrid system on an island-able fringe of grid power system

• Bi-directional network connection to Western Power grid

• Power and water offtake to Australian Department of Defence

Timing:

• Commissioning in 2017

• FID decision waiting on Government grant funding

2 MW150kL/day1MW + + + +2MW/0.5 MWh Control

System

• 2MWp solar PV array

• 2MW/0.5MWh energy storage

• Advanced microgrid control, synchronisation and protection system

Control System

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Island Microgrid Project #2: Mauritius & Rodrigues

Mauritius Example

• Isolated grid system with peak load of 378MW

• Multiple generation sources (diesel, biomass, hydro, PV, wind,..)

• ~ 22% from RE currently, near term target of 35%, longer term +50%

• Will need grid integration technologies and distributed generation in the

form of microgrids (importing/exporting) to ensure power quality and

reliability can be maintained.

Current Project

• Carnegie delivering AU$800,000 DFAT funded contract for (i) High

Penetration Renewable Energy Roadmap, (ii) Wave Resource

Assessment and (iii) 5MW Microgrid System Design.

Planned next stage

• Carnegie take its design and, against a PPA, deliver the financing, EPC

and O&M of a solar, battery microgrid project.

• Existing project delivers a roadmap, at a detailed level, to subsequently

deliver a wave power solution when required.

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Carnegie and Energy Made Clean

Energy Made Clean

• Carnegie invested $4.5m for 35% of Energy Made Clean (EMC) and the parties

form alliance in March 2016.

• Focused on delivery of proven renewable microgrids to islands, off-grid, fringe-of-

grid communities

• Leading Australian Solar/Battery Microgrid EPC

• 55 staff and offices, workshop, warehouse, test facility and equipment fleet based

in Perth, Brisbane and Melbourne.

• Licensed Electrical Contractor, Licensed Electricity Retailer (SWIS), CEC

Accredited, Chartered Engineers & NPERs

• Partnership with NZ utility Infratec to expand state-of-the-art Solar/Battery/Diesel

Solutions to NZ and the Pacific Islands

3,500 m2 construction and staging facility, Western Australia

Remote monitored and controlled 100 kW PV /110 kVA Diesel/ 64 kWh

battery project in outback Australia

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EMC Meta Maya Project

• Pilbara Meta Maya Aboriginal Corporation in Pilbara, Western Australia

• Train local Aboriginal communities to O&M the hybrid system and roll out to the remote

towns currently running on diesel

• Peak Load @ 70kW, night time load approx. 7kW

• 100 kW Solar PV (carport mounted partly CAT-D wind region)

• 110 kVA Diesel Generator

• Pre-assembled and pre-commissioned 20ft POD, 64 kWh Sony Lithium Iron Phosphate

• Fully remote monitored and controlled (National Instruments control architecture)

• >35kAUD savings / year with a potential 7 year payback since 2015 operations.

EMC 20 ft. POD unit EMC Solar Panels

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EMC Thevenard Island Project

• Project for Mackerel Island Corporation

• Attractive island location, offshore from Onslow, Western Australia

• Project aimed to provide fuel independence and energy savings.

• Corrosive location and high wind (CAT-D) region

• Peak load @ 240kW & annual load usage > 1GWh

• 614 kWh Sony Lithium Iron Phosphate (2 x 40ft containers)

• 324 kW Solar PV (ground mount screwpile)

• 440 kVA Diesel Generation (4 x 110kVA)

• Real time monitoring and control

EMC CEO John Davidson (left) with Western

Australia’s Premier Colin Barnett (right) inside a POD

Unit

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EMC Utility Solar Square Kilometre Array Project

• Project for CSIRO, located 350km northeast of Geraldton, Western Australia

• Designed to produce world’s most sophisticated antenna system to have the most

sophisticated solar/storage/diesel power system in the world.

• 1.6MWp solar facility in combination with an N+1 IGBT based battery system being

capable of diesel off functionality.

• EMC tasked to perform structural design for solar installation and fully pre-commissioned

containers from Perth.

• 1.25 MVA microgrid-connected at 6.6 kV, ABB PCS100 Inverter 1.25 MVA

• 2.6 MWh Samsung SDI Lithium batteries (68Ah)

• PV central inverters delivered in EMI shielded containers manufactured by EMC in Perth

• Containerised installation, Fire Suppression / Fire Rated, Centralised HVAC

• EMC control system (National Instruments)

• Delivery Quarter 2 2016For

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EMC Rottnest Island Project

• Rottnest Island Water and Renewable Energy Nexus (WREN) project for Hydro

Tasmania. Located 19km West of Fremantle, Western Australia

• ARENA (Australian Government) $4.8m grant

• Current Generation: 600kW wind, 7 x diesel generators including LLDs.

• Aimed to increase renewable fraction to 45%.

• EMC delivering new 630kWp solar facility including solar protection & control

system.

• Hydro Tasmania Control System and Load resistor used for dispatch of loads.

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EMC Alkimos Project

• On-grid Utility-Scale Battery Project

• First of its kind on a community scale in Australia

• Located in Alkimos Beach, Perth, Western Australia

• 1.1MWh energy storage system

• Demonstration project for Synergy (Western Australian Government-owned Gentailer)

• Commenced early 2016

• Offers residents:

• Virtual energy storage rebates for solar PV

• Solar hot water system and other energy efficient appliances

• In-home energy display unit monitoring generation and usage

• Education program to help residents maximise their potential to save money and

better manage energy usage

• ARENA (Australian Government) $3.3m grant

Australia’s Treasurer and Minister for Energy Dr. Mike Nahan

(left) with Australia’s Minister for the Environment Greg Hunt

(right) inside a POD Unit at the Alkimos Beach Project

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Summary

• CWE owns and develops the world leading wave power technology, CETO, and after nearly 10 years

and $100m invested, has a clear pathway to commercialisation.

• Recent expansion into island, remote and fringe of grid mixed renewable microgrids broadens the

opportunity set, lowers the business risk and brings forward revenues.

• Initial microgrid capability achieved through:

• 35% stake in and strategic alliance with Energy Made Clean, leading solar/battery/diesel

micogrid EPC

• Garden Island Micogrid Project: 2MW solar, 2MW/0.5MWh battery + wave, desalination and

diesel. DoD offtaker. FID waiting on Govt grant.

• Mauritius roadmap, wave assessment and microgrid design project funded by Australian Govt

DFAT

• Project pipeline under development

• Microgrid project delivery now creates the market for the more consistent wave energy technology

once proven which will enable very high penetration microgrids.

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Documents

June 9, 2016 For personal use only - ASX · 2016. 6. 8. · ASX Announcement June 9, 2016 Carnegie Presentation at Asian Development Bank's Clean Energy Forum Please find attached