Business News (WA), Perth
21 Sep 2015
General News, page 1 - 1,116.00 cm²
Suburban - circulation 10,699 (M------)
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businessnews.com.au | September 21-27,2015"
I Environmental I
Services
list
page 16
USINESSNEWS
W E S T E R N
AU
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Michael Ottaviano
Managing director,
Carnegie Wave Energy
Photo: Attila Csaszar
Business News (WA), Perth
21 Sep 2015, by Saskia Pickles
General News, page 12 - 843.00 cm²
Suburban - circulation 10,699 (M------)
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3 Wave energy companies located in WA (of four nationally)
Wave players' swell connection
WA's natural wave resources have made it home to three
energy companies that have taken a collegial approach to
developing the new technology.
Saskia Pickles
[email protected]
Source: Morningstar
THE degree to which operators
in the state's burgeoning wave
energy industry are invested in
the success of their competitors
provides a marked point of difference to most business sectors in
Western Australia.
The complexities of developing
commercially viable models that
can convert unpredictable waves
into a steady stream of electricity
have proved harder to crack than
for wind and solar technologies.
As a result, hundreds of companies around the world that
entered the wave energy industry
have failed, leaving only three that
are generally regarded as close to
commercialisation and about SO in
earlier stages.
Of these, WA has a top three
contender, Carnegie Wave
Energy, and two in the early
stages - fellow public listed company Stonehenge Metals (which
recently acquired Protean Wave
Energy), and private group Bombora Wave Power.
Backed by some heavy corporate hitters, Carnegie Wave Energy
managing director Michael Ottaviano told Business News that, when
a wave energy company based in
Victoria recently carried out ocean
trials, Carnegie helped with the
deployment strategy.
"It was for the simple reason that
if they were to fail it reflects really
badly on the wave energy industry
generally," Mr Ottaviano said.
"Investors sometimes find it
hard to make the distinction that,
just because one technology's
failed it doesn't mean the whole
industry is a failure, particularly
in wave energy where there have
been lots of failures."
busincssncvvs.com.au/Company/
Camegie-Wave-Energy
half of its South Korean project),
acquired Protean for $1.3 million
last year and is now in the process
of going through a re-compliance
listing on the ASX.
Mr Lane said by focusing
on creating easily deployable
and smaller devices, Protean
believed it could offer island
While Mr Ottaviano is complidwellers, especially, a viable
mentary of Protean and Bombora,
alternative to Carnegie's deep
and they of his business, he has
ocean large-scale strategy, which
reserved judgement until they
is focused on markets in the UK
outlay major capital (Carnegie has
and Europe.
spent $100 million) and carry out
"Carnegie's device is of a scale
long-term ocean trials, as Carnegie
and engineering approach that
has done during the past decade.
requires a heck of a lot of money
However, Bombora and Proto be spent ... when you stand
tean have both argued they can
next to a Protean device you'll
bring products to market much
- understand we're playing the
quicker and for less money than
game differently," he said.
Carnegie.
While Protean and Carnegie
Stonehenge Metals managhave opted for buoy-type designs
ing director Bruce Lane, who
attached by a rope to a single
revealed to Business News he is
point on the sea floor, Bomboa Carnegie shareholder, said the
ra's mid-scale prototype being
company had spent just over $1
tested in the Swan River is commillion developing intellectual
pletely attached to the ground,
property and $500,000 to get
with a large, angled, moveable
recent approval to test 30 protomembrane.
types off Bunbury Port.
Brothers and former mining
Stonehenge, which started
engineers Shawn and Glen Ryan,
out as a uranium and vanadium
who designed the technology,
explorer (it has now divested
anticipate they need to raise $6
Business News (WA), Perth
21 Sep 2015, by Saskia Pickles
General News, page 12 - 843.00 cm²
Suburban - circulation 10,699 (M------)
Copyright Agency licensed copy
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million by the end of next year
to continue developments; a sum
a
busincssnews.com.au/Company/
Stonehenge-Metals
they hope to raise without going
public.
According to chief executive
Sam Leighton, Bombora has
struck on a strategy that will
allow it to capitalise on intellectual property early, use cheaper,
off-the-shelf technology where
possible, and bring in partners to
help them commercialise designs.
"As a small company, we plan
to license our technology to big
companies that will produce
these devices in very large scale,"
Mr Leighton said.
"Our plan is to be involved in
the production of the full scale
prototypes, then work with
partners who would become
manufacturers for the full-scale."
Until any of the companies
has a commercial product, they
don't expect their value, or in the
case of the two public companies,
their share price to reflect their
achievements.
"We would obviously like the
share price to be higher than it is
... but I'm confident that it will be
reflected in due course," Mr Ottaviano said.
0 For more on this issue,
=5 type into yo
biily/bombor
BN
DATA&LISTS ?*l BN
Carnegie Wave
Energy (CWE)t
DATA&LISTS
Stonehenge
Metals (SHE)
Share Price
Share Price
Closing price for the last 90 trading days
Closing price for the last 90 trading days
0.06
0.06
0.055
0.05
C
0.05
0.04
0.045
0.04
0.03
Sep'15
Jul '15
View the full CHART
Sep'15
Jul '15
»
View the full CHART
Source: Momingstar
Total Shareholder
»
Source: Morningstar
Total Shareholder
Return o
as at 31/08/15
1 year 5 year
TSB
1 year 5 year
TSR
TSR
TSB
90 m Orthoceil
Stonehenge
i 9 g t h
Carnegie Wave
<
%
_
Metals
Energy
576
224m JV Global
264 th Katana Capital
0% -24%
-11%
Metals Australia
604th Enterprise Uranium
-60% -29%
-64%
0%
-71%
-24%
9%
643
th
350'
th
rd
Australian Mines
Frankland River
Otive Company
-25%
-13%
698 WA (and selected non WA) listed companies
ranked by 1 year TSR relative to other companies with
similar revenue
Source: Morningstar
724'" Blaze International
-88% -57%
698 WA (and selected non WA) listed companies
ranked by 1 year TSR relative to other companies with
similar revenue
Source: Morningstar
Business News (WA), Perth
21 Sep 2015, by Saskia Pickles
General News, page 12 - 843.00 cm²
Suburban - circulation 10,699 (M------)
Copyright Agency licensed copy
(www.copyright.com.au)
ID 467523247
BRIEF CARNEGIE(P
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NATURAL: Michael Ottaviano is eyeing overseas markets, but says WA is a natural home for
wave energy development. Photo: Attila Csaszar
PAGE 3 of 3