ALBANY WAVE ENERGY PROJECT
— CARNEGIE CLEAN ENERGY — FINANCIAL ASSISTANCE
885. Hon PETER COLLIER to the Minister for Regional Development:
I refer to the financial assistance
agreement with Carnegie Clean Energy and the payment of $2.6 million.
(1) On what date was the payment
made to Carnegie Clean Energy?
(2) Did Carnegie Clean Energy meet
the 1 July 2018 milestone?
(3) If no to (2), on what basis was
funding provided to Carnegie Clean Energy?
(4) What work has Carnegie completed
up to 1 July 2018?
(5) What evidence
did Carnegie submit to confirm procurement for common-user infrastructure and
site development activities have commenced? Will the minister table the
evidence submitted by Carnegie; and, if not, why not?
Hon
ALANNAH MacTIERNAN replied:
I thank the member for the question.
(1) The payment
to Carnegie Clean Energy is currently going through the Department of Primary
Industries and Regional Development's authorisation processes.
(2) There are
no deadlines attached to the milestones in the financial assistance agreement.
The milestone dates refer to the date from which the milestone payments may be
requested by the recipient on a not-earlier-than basis. The recipient is able
to claim payment of the milestone after this date once the relevant
deliverables relating to that milestone have been achieved.
(3) On 23 July
2018, Carnegie submitted a request for its first milestone payment of $5.25 million.
DPIRD conducted a due diligence on the milestone and reviewed this with
Carnegie. DPIRD was satisfied that Carnegie had commenced site development
activities but did not believe that the aspect of the milestone relating to
procurement of the common-user infrastructure had been demonstrated at that
stage. DPIRD sought procurement advice and following further negotiation with
Carnegie, on 27 August 2018, Carnegie submitted a revised proposal for a staged
payment arrangement for milestone 1. On 28 September 2018, DPIRD and Carnegie
signed a variation to the FAA to split the first milestone into two distinct
deliverables. Following legal advice, on 5 October 2018, DPIRD confirmed that a
$2.625 million payment will be made to Carnegie in recognition that it has met
the revised first milestone through the commencement of site development
activities.
(4)–(5) Carnegie
provided a project update to DPIRD on the Albany wave energy technology
development project on 23 July 2018. DPIRD considered these activities as
constituting site development activities as per the performance measure against
milestone 1 in the FAA.
I seek leave to have the
following information incorporated into Hansard.
Leave granted.
The
following material was incorporated —
�
Site Layout
For offshore aspects, Carnegie defined the preferred towing route, the
site for the CETO 6, the cable route and the Horizontal Directional Drilling
(HDD) exit point. For the onshore site, they had defined their preferred
onshore site, HDD entry point, connection point to the electrical grid, the substation site and the onshore cable
route. The work was based on the geophysical survey completed between 31 May
and 3 June 2018 using the Empress Marine (Dunsborough) Vessel. Carnegie
also carried out geological studies for the onshore location having secured
borehole data, which will allow them to design the HDD route and performed
analysis with the model to understand specific wave spectral characteristics
and effect upon the predicted CETO power output.
�
Common User Infrastructure
A request for Information (RFI) was issued to potential suppliers for
the export cable including the export cable pigtail, seafloor instrumentation
cable and the cable junction. A preliminary design for the offshore foundation
had been awarded. Four foundation concepts were investigated with the preferred
design being a single drilled and grouted pile. Cost estimates were prepared. A
procurement study was conducted for the AC/DC/AC converter and other key
components of the onshore substation. An RFI for the drilling works and
geotechnical survey was issued to eight companies.
�
CETO design
Study completed on the lifting options for different berths at Albany
port, with potential wharf modifications required to allow the CETO lifts to
proceed. The belt and pulley design was ongoing and a finite element analysis
of the key components was completed. Phase 2 of the power offtake unit design
was completed. Tank testing was completed at the Plymouth UK wave basin in
March 2018. Request for Quotations for the
mooring systems were issued with submissions received from five suppliers. The
buoyant actuator design was completed in house by Carnegie.
�
Community Consultation
Carnegie had made several public information displays and presentations
including local supplier engagement sessions.
�
Approvals
The environmental scoping study had been completed,
which was ready to be lodged with the Environmental Protection Authority and
the City of Albany. Onshore environmental surveys have been undertaken.