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Parliamentary Questions


Question Without Notice No. 885 asked in the Legislative Council on 9 October 2018 by Hon Peter Collier

Parliament: 40 Session: 1

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.