Ann: Carnegie Wave Energy Ltd Quarterly Report-CWE.AX, page-4

The Quarterly is a good summary largely of things we already knew. A key issue is the expectation of outcome of a European Commission grant in Q3 for Stage 1 at Wave Hub. This was always the big unknown in the train of steps towards commercialisation to the European Union utilities.

If the EC is willing to support the funding of EUR 17M for the Wello Penguin then it can hardly refuse funding for a single unit Ceto 6 to be placed in predesignated position at Wave Hub. The EU is desperate for reliable sources of renewable energy. It fears being beholden to Russian gas.

CWE has been playing its cards right in appearing to be a local company by doing R&D at Edinburgh, Plymouth, Exeter, etc. as well as presenting at Marine Energy conferences everywhere. It’s called flag waving and although it is time consuming it is a necessary strategic activity in being accepted as “one of us”. At the same time it builds to a critical watching power engineering fraternity among EU utilities who will become our large scale customers beyond 2020. Just how long they will wait to see performance at Wave Hub is hard to say. Utilities tend to be conservative but they may form a consortium to fund the next 10 – 15 MW of C6 units at Wave Hub.

By this time the GIMP will be complete and there should also be C6 units operating at Mauritius. This is what is called a convergence of evidence.

Juke