Mixed Greens: Carnegie raises $9m for CETO-6

ASX-listed marine power company Carnegie Wave Energy has completed its latest capital raising, with a proposed $6 million offer heavily oversubscribed and ending up at around $9 million. Initiated in February, the share purchase plan ultimately attracted over-subscriptions of around $7.6 million from current share holders, and a further $1.5 million of commitments through a private placement.

The WA-based company says the funds will be used to further develop its 1MW CETO 6 wave energy technology and as working capital. Carnegie’s CETO 6 system is set to be tested as a 3MW installation at Garden Island in WA, where its existing Perth Wave Energy Project is located. The company also recently won a deal to test a 3MW installation at Wave Hub in the UK – a world-leading dedicated wave energy demonstration site. Settlement of the $9 million in funds and issue of shares will occur over the next 10 days.

A green bond boom?

Bond market analysts have predicted a flurry of Australian domestic green bond issuance, following last week’s “cracking” open of the market, when 15 investors took up UniSuper’s offer of access to a $100 million share in the World Bank’s $300 million issue of “Kangaroo” Green Bonds – its first Australian dollar denominated offering. “We expect at least $A1 billion (of green bond issuance) by the end of the year,” wrote Climate Bonds analyst Sean Kidney in an update this week.

A $40 billion university super fund, UniSuper offered its 450,000 members exposure to the 5-year, AAA-rated bonds by actively selecting its Socially Responsible (SR) Balanced ”option”. Investors included Aberdeen Asset Management, AMP Capital, Australian Ethical Investment Ltd, Colonial First State Global Asset Management, Local Government Super (a foundation buyer of green bonds in the Australian market) and QBE Insurance Group.

In other news…

A new solar-powered boat will soon be gracing the waters of the Great Barrier Reef Marine Park, charged with patrolling and monitoring the 348,000 square kilometre World Heritage area. The $5 million, 24-metre aluminium catamaran – built by Marine Engineering Consultants (MEC) Yachts at Coomera – is expected to be operational in May, when it will replace its 24 year old predecessor. A large bank of solar panels will power the boat, reducing its reliance on costly diesel and cutting greenhouse gas emissions by 30 per cent. The vessel can operate away from port for 12 weeks, has a range of up to 2000 nautical miles and speeds of up to 25 knots – and can carry up to 28 people on day operations.

Brisbane-based battery developer, Redflow, has announced further improvements to its unique zinc-bromine (ZBM) “flow” batteries that the company says will make them easier to manufacture and more flexible to use in a wider range of energy storage systems. Redflow says the changes mean the batteries could potentially be used in such applications as telecommunication towers, household and remote off-grid systems, DC-powered microgrids, and uninterruptible power supply markets. Last month, the company announced plans to target a 40 per cent cut in the capital cost of energy storage systems by the end of 2015.