UPDATE – Wave developer allots global territories to partners

Wave energy developer Renewable Energy Holdings plc (REH) has approved agreements dividing exclusive global development territories between Carnegie Corp. Ltd. of Australia and EDF Energies Nouvelles SA of France.

The United Kingdom-based REH said August 10 it signed an agreement allowing Carnegie to develop wave energy projects in the Southern Hemisphere, excluding Reunion Island, using REH’s proprietary CETO wave power technology. REH previously signed an agreement, July 27, allowing EDF Energies Nouvelles, an Electricite de France unit, to use CETO to develop wave energy projects in the Northern Hemisphere and on Reunion Island, a French overseas department off the east coast of Africa. (HNN 7/30/07)

CETO features a wave power converter that sits on the seabed. It transmits high-pressure seawater ashore through a small pipe. The water is used either to power a turbine-generator or for reverse osmosis to produce fresh water.

Carnegie previously co-funded development of the CETO technology through its holding in SeaPower Pacific Pty Ltd., prior to REH acquiring SeaPower in 2005.

Under their agreement, REH, through SeaPower, will continue to own all CETO intellectual property while Carnegie will commit to fund CETO’s development through to commercialization from July 1. Carnegie is to raise 3 million pounds (US$6 million) in funding over two years.

Carnegie will be entitled to 90 percent interest in the equity of each CETO project in its �territory of exclusivity,� with the remaining 10 percent being a �free carry� held by REH, REH said. REH will grant technology licenses to project operating subsidiaries for a license payment of 2 percent of the total project cost.

Under the agreement with EDF Energies Nouvelles, REH has the right to participate in each of EDF Energies Nouvelles’ CETO wave power projects with equity interest of between 25 percent and 49 percent. REH will grant technology licenses to project operating subsidiaries for a license payment of 2 to 3 percent of the total project cost.

EDF Energies Nouvelles also agreed to purchase 6 million new shares in REH at 50 pence each for a total amount of 3 million pounds (US$6 million). The funds are to be used for completing a prototype and for industrial development of CETO technology to prepare it for commercial deployment.

REH also announced August 3 it placed 8 million shares at 50 pence (US$1.01) per share with institutional investors to raise 4 million pounds (US$8 million).

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