Highlights

  • Carnegie Clean Energy (ASX:CCE) is progressing staged deployment of its CETO wave energy technology at BiMEP.
  • The company has expressed interest in using the PacWave South grid-connected test Facility in the United States.
  • Working capital support has increased, while Liquidity and Going Concern uncertainty remain important considerations.
  • Project execution, milestone payments and future capital requirements remain key areas to monitor.

Wave energy has been a decades-long promise, and Carnegie Clean Energy (ASX:CCE) is among the few ASX-listed companies still pursuing it. Recent developments include the opening of a grid-connected test facility off Oregon that the company wants to use and an increase in Working Capital support from its financier. Against that, FY2026 accounts show under A$1 million of cash and a going concern uncertainty note. Both sides of that position explain why execution and funding remain central to the company’s outlook.

Latest Development

In early September 2026, Carnegie marked the opening of PacWave South, a grid-connected open-ocean wave energy test facility off Newport, Oregon, backed by the US Department of Energy, the State of Oregon and Oregon State University. The company said it is interested in becoming a site user and intends to demonstrate CETO there to support North American deployment.

Chief executive Jonathan Fievez described wave energy as one of the largest untapped renewable resources globally, with Carnegie citing roughly 1,400 terawatt hours a year of capturable US wave power.

Company Overview

Carnegie develops CETO, a wave energy converter operating entirely beneath the ocean surface — a design the company says avoids visual impact and shelters the unit from destructive surface waves. Its other operating asset is the Garden Island Microgrid in Western Australia. Development runs through the European ACHIEVE programme, with assembly and testing alongside partners including SKF.

Recent Developments

In late August 2026, Carnegie disclosed that Ballamena Pty Ltd, Trustee for the Ellann Finance Unit Trust, had lifted its Loan Commitment from A$2.5 million, first announced in October 2024, to A$3.5 million. The facility bears interest at 15% per annum, matures on 30 June 2027 and is secured by a featherweight general security agreement.

The funds are temporary cashflow support for ACHIEVE, bridging procurement costs and milestone payments. Repayment depends on those payments and on Research and Development tax incentives.

Financial and Operational Position

For the year to 30 June 2026, total Revenue and other income was A$608,635, up 50.1%, of which A$453,774 came from Garden Island Microgrid electricity sales. The net loss after tax widened 18.8% to A$2,765,868.

Cash stood at A$996,347 at 30 June 2026, down from A$2.9 million a year earlier, against a net current Liability position of A$2,460,693. Directors acknowledged material uncertainty over going concern while stating they expect the group to continue, citing its capital raising record.

Net research and development spending on CETO was about A$1.1 million after grants and rebates. A A$2.1 million share purchase plan was completed in September 2025 and a A$2.5 million Placement at A$0.18 per share in July 2026. CETO intellectual property was carried at A$18.8 million.

What Investors May Watch Next

Staged ocean deployment of the scaled CETO prototype at BiMEP, the Biscay Marine Energy Platform in Spain's Basque Country, is planned to begin in October 2026 — the clearest dated milestone ahead.

Progress toward PacWave site use, a memorandum with Chugachmiut exploring CETO for remote Alaskan communities, and the September quarter Appendix 4C are the other markers.

Risks

The going concern note is the central issue: cash at balance date was under A$1 million against a net current liability position, and the company relies on milestone payments, grants and potential further capital. Borrowing at 15% is expensive for a pre-commercial developer. Wave energy has no commercial-scale operating record, and the A$18.8 million CETO carrying value rests on assumptions that delays could test.

Key Takeaways

Carnegie Clean Energy (ASX:CCE) is moving from design and development work towards staged deployment of its CETO technology. A prototype is planned to begin deployment at BiMEP from October 2026, while the opening of PacWave South creates another potential pathway for future testing in the United States.

Funding remains a central consideration. The increased loan commitment provides additional working capital support, but liquidity remains tight and the company continues to depend on milestone payments, grants and access to capital. The coming quarters may provide clearer evidence of whether technical execution keeps pace with funding requirements.