ASX Announcement

20th April 2011

Commercial Scale CETO 3 Installed and Operating

 Commercial scale CETO unit successfully installed and operating

and producing power off Garden Island
 Performance data being collected and transmitted to West Perth
control room for analysis
 Performance meeting all expectations with further results to
follow

Wave energy developer Carnegie Wave Energy (ASX: CWE) is pleased to

advise that its commercial scale CETO 3 unit has been successfully
installed offshore from Garden Island in Western Australia and is
producing power in lines with expectations.

The CETO Buoyant Actuator during the installation The fully submerged commercial scale CETO unit
process in operation next to deployment barge

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

Carnegie’s Managing Director Dr Michael Ottaviano said,

“This is the most significant milestone in Carnegie’s history and follows more
than 5 years of in-ocean testing of scale CETO prototypes. It now allows us to
plan our project pipeline roll out with confidence. Carnegie’s CETO technology
was already the only wave technology to have produced desalinated water; it
is now the only commercial scale wave unit ever deployed and operated in
Australia and the Southern Hemisphere.”

“I’d like to thank all of Carnegie’s team which has put in a tremendous effort
over the last 18 months and, in particular, the last 3 months. Their effort, along
with our key contractors, has allowed us to achieve this major milestone safely
and effectively. Additionally, we’re grateful for the support of the State
Government of Western Australia through the LEED grant program and the
Australian Department of Defence.” Dr Ottaviano said.

The CETO unit’s data acquisition and remote control system is also operating
to design and allows the collection and transmission of performance data and
complete system control in real-time from the CETO control centre in West
Perth. Carnegie engineers are manning the centre around the clock to
conduct power optimisation trials and monitor performance as well as carrying
out detailed data analysis.

Carnegie expects to have analysed performance data within 6 to 8 weeks and

will retrieve the CETO unit on completion of the primary testing period for
visual inspection.

In parallel with manufacture, design and installation activities, Carnegie has

been developing the design of a small scale, grid-connected 2 to 5MW
demonstration project. A finalised conceptual design is now complete and
work on the detailed design will commence shortly.

Further images and video of the installation and operation are included below
and can also be found on Carnegie’s website www.carnegiewave.com

Buoyant Actuator being off-loaded prior to CETO unit operational off Garden Island just after
installation installation
CETO pump and attachment undergoing vertical CETO pump and attachment being deployed off
testing at Fremantle prior to installation the barge

About the Perth Wave Energy Project

Carnegie’s Perth Wave Energy Project is located offshore in the ocean between
Garden Island and Five Fathom Bank at a depth of approximately 25 metres. Upon
completion, it will be Australia’s first commercial scale wave energy project.

The primary aim of the project is to demonstrate the CETO technology in commercial
operation. The project site could also be a base for a desalination pilot project
utilizing Carnegie’s CETO technology.

About CETO

The CETO system distinguishes itself from other wave energy devices by operating
out of sight and being anchored to the ocean floor. An array of submerged buoys is
tethered 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 delivered
ashore via a pipeline.

High-pressure water is used to drive hydroelectric turbines, generating zero-emission

electricity. The high-pressure water can also be used to supply a reverse osmosis
desalination plant, replacing greenhouse gas emitting electrically driven pumps
usually required for such plants.
CETO Technology characteristics include:
 CETO converts wave energy into zero-emission electricity and desalinated water
 CETO is environmentally friendly, has no visual impact and attracts marine life
 CETO is fully submerged in deep water away from popular surf breaks

About Carnegie

Carnegie Wave Energy Limited is an Australian, ASX-listed (CWE) wave energy

technology developer. Carnegie is the owner and developer of the CETO Wave
Energy Technology intellectual property.

For more information: Media:

Dr Michael Ottaviano Sarah Allchurch
CEO & Managing Director Allchurch Communications
Carnegie Wave Energy Limited +61 8 9381 6625
+61 8 9486 4466 +61 412 346 412
enquiries@carnegiewave.com sarah@allchurchcommunications.com

Website: www.carnegiewave.com