Carnegie’s Wave Energy Future Faces Funding and Deployment Hurdles

Financial Performance and Position

Carnegie Clean Energy Limited (ASX – CCE) closed the financial year ended 30 June 2025 with a net loss of $2.33 million, marginally higher than the prior year’s $2.32 million loss. Revenue remained modest at $405,371, reflecting the company’s ongoing development phase rather than commercial sales. The company’s net tangible asset backing per share declined to 0.41 cents from 1.54 cents, highlighting the capital-intensive nature of its technology development.

Despite the loss, Carnegie’s directors remain confident in the company’s long-term prospects, supported by a strong cash position of nearly $2.9 million and a $2.5 million loan facility secured in late 2024 to bridge project funding gaps. The company also benefits from an Export Growth Bond Facility with Export Finance Australia, facilitating grant funding advances for its European deployment programme.

Technology Development and Commercialisation Progress

Carnegie’s core technology, the CETO wave energy converter, advanced significantly through the ACHIEVE Programme, marking its first deployment in Europe at the Biscay Marine Energy Platform (BiMEP) test site in Spain’s Basque Country. The company unlocked milestone payments totaling approximately AUD 3.6 million during the year, underpinning design, fabrication, and testing activities supported by a growing European supply chain.

Partnerships with industrial leaders such as SKF for the power take-off system and Hewlett Packard Enterprise for reinforcement learning control underscore Carnegie’s collaborative approach to refining its technology. The company also signed a memorandum of understanding with Chugachmiut to explore wave energy projects in Alaska, signalling ambitions to expand into new geographies.

Alongside CETO, Carnegie progressed its MoorPower technology, a wave energy solution tailored for marine industries like aquaculture to reduce diesel reliance. The MoorPower Scaled Demonstrator completed its operational phase offshore Western Australia, validating design and performance models with over 2,000 hours of data. A subsequent Commercial Pilot Preliminary Design project, supported by the Blue Economy Cooperative Research Centre, aims to bring MoorPower closer to commercial deployment.

Corporate Developments and Market Positioning

Carnegie established a wholly owned US subsidiary, Carnegie Clean Energy LLC, to tap into the growing American wave energy market, which benefits from substantial government support for ocean renewables. Leadership changes included the retirement of long-serving Chairman Terry Stinson and the appointment of Anthony Shields as the new Non-Executive Chairman.

Post year-end, the company announced a $3 million share purchase plan at 5.7 cents per share to bolster its capital base, reflecting ongoing efforts to secure funding for its commercialisation pathway. The company’s intangible assets, primarily the CETO intellectual property, increased in carrying value to $17.75 million based on a relief from royalty valuation method, indicating management’s confidence in the technology’s future revenue potential.

Risks and Outlook

While global momentum towards decarbonisation and offshore renewables presents a promising backdrop, Carnegie faces risks typical of early-stage technology developers. These include supply chain constraints for bespoke components, deployment challenges at test sites, and the need to secure commercial partners and funding for pilot projects. The company’s going concern status carries material uncertainty, hinging on successful capital raises and operational milestones.

Nevertheless, Carnegie’s dual focus on CETO’s European deployment and MoorPower’s commercial pilot in aquaculture positions it well to capture emerging opportunities in hard-to-abate energy markets. The company’s transparent reporting and strategic partnerships provide a foundation for investor confidence as it navigates the path to commercial viability.