Wave power washout in Albany? | The West Australian

Doubts were last night hanging over the viability of a troubled Albany wave power project backed with $15 million of taxpayers’ money after the company behind the proposal left it to the 11th hour to prove it could fund the work.

Carnegie Clean Energy was yesterday facing a deadline to show it could fund its $26 million share of the $53 million Albany wave energy plant in order to obtain the next instalment of a State Government grant. The company waited until moments before the cut-off to submit its paperwork, although it had not updated the stock exchange by the time The Weekend West went to print.

Regional Development Minister Alannah MacTiernan confirmed she had received the submission.

In November Ms MacTiernan, right, gave Carnegie a lifeline when she agreed to extend the deadline for the company to produce a funding plan until yesterday.

Under an agreement with the Government, Carnegie is entitled to a $15.75 million grant provided it can meet its share of the project’s funding costs.

So far $2.65 million has been handed over by the State.

Last night’s developments were the latest in a saga stretching back to February, 2017, when Labor promised to help fund WA’s first commercial wave power project off Albany. 

Carnegie won the tender but has been mired in difficulty since, posting a $64 million loss last financial year.

The WA Nationals this week claimed the tender process had been engineered to ensure Carnegie was the only bidder that could win the development rights.

Documents released under freedom of information laws show the Government required the project to be built “in close proximity” to the Albany wind farm, just south of the town.

Warren-Blackwood Nationals MP Terry Redman noted Carnegie had an exclusive licence over the sea floor adjacent to the wind farm and it had been renewed in 2017.

Mr Redman said the criteria in the State’s “request for proposal” suggested the process was designed to ensure Carnegie was the only viable bidder. 

Ms MacTiernan dismissed the claims, saying proponents were not restricted to the area covered by Carnegie’s licence and pointing out three other companies put their hands up.

“As the tender documents made clear, the State Government was open to proposals for any location in the vicinity of Albany, not just the area over which Carnegie held a license,” she said.