A license agreement, with the Carnegie Corporation, to investigate a suitable site for the development of a wave energy power project within the state has been signed by the South Australian government. The licence, signed today (11th February), will allow Carnegie to test a site along the Limestone Coast in SA, near Port MacDonnell, with a view to building a demonstration 50 MW wave power station.

The License Area covers approximately 17,000 ha of seabed adjacent to Port MacDonnell near Mt Gambier in the state's South-East.

Commenting on the deal state Premier Mike Rann said; "Whether this is the right site will depend on these tests, but Carnegie is one of several emerging companies taking up the challenge of providing a new form of base-load sustainable energy. It is one of two companies looking to South Australia to trial its wave power technology along our coastline, and we want to encourage others to do the same."

He concluded; "Our message to these companies is that the South Australian Government will do all it can to open the way for renewable energy investment in the state."

The state is a leader in developing renewables. It already has 58% per cent of Australia's installed wind generation capacity and more than 70% of its geothermal exploration activity. The government has now given assurances that a similar framework will be developed specifically for the wave and tidal sector.

Carnegie Corporation's Managing Director Dr Michael Ottaviano said; "We are delighted to have secured a further option for the location of our commercial demonstration project in addition to our Western Australian sites. The South Australian coast receives a world class wave energy resource and further adds to South Australia's leadership in developing renewable energy including wind, solar and geothermal."

The License Term is for 3 years with a further 3 year right of renewal and allows the Minister for Energy to grant a life of project lease at any time during the license period.