Wave developer Carnegie Clean Energy has been given nine weeks to provide a detailed funding plan to the Western Australia (WA) state government to continue with its Albany project.
Upon receipt of the plan, WA will assess whether the company has the financial capability to complete the 1.5MW project.
The move follows an agreement by regional development minister Alannah MacTiernan to pay Carnegie the previously negotiated and revised first milestone payment of A$2.625m for the Albany scheme.
Carnegie said WA was satisfied Carnegie has commenced site development activities and design works, and has complied with its contractual obligations.
The financial viability of the project consisting of a single Ceto 6 device has come under question following changes to federal R&D tax incentives.
“The proposal to change R&D tax incentives, contained in their 2018-19 budget, has threatened the bottom line of several Western Australian companies, from renewable energy to tech metals,” the company said
“Given the circumstances surrounding the changes, the state government is committed to protecting its investment and building safeguards in the project to minimise financial exposure.”
Source:Renews
