ANNUAL
REPORT
2024
We harness ocean energy
to make the world more
sustainable
Carnegie Clean Energy Annual Report 2024
2
Board of Directors
Terry Stinson
Non-Executive Chairman
Michael Fitzpatrick
Non-Executive Director
Grant Mooney
Non-Executive Director
Anthony Shields
Non-Executive Director
Chief Executive Officer
Jonathan Fiévez
Company Secretary
Grant Mooney
Registered Office Address
21 North Mole Drive
North Fremantle WA 6159
Postal Address
PO Box 39
North Fremantle WA 6159
Telephone
(08) 6168 8400
Share Registry
Automic Group
GPO Box 5193
Sydney NSW 2001
1300 288 664 (within Australia)
Auditors
HLB Mann Judd
Level 4, 130 Stirling Street
Perth WA 6000
Website: www.carnegiece.com
Subsidiaries
CETO Wave Energy Ireland Limited
4th Floor, North Block, Rockfield Central
Dundrum DN 16, W7W3 Ireland
Carnegie Technologies Spain S.L.
Claudio Coello, 24 – 4A2
28001 Madrid, Spain
CETO Wave Energy UK Limited
5 South Gyle Crescent Lane
Edinburgh EH12 9EG, Scotland
Corporate
Directory
ASX Code: CCE
OTCQB: CWGYF
Carnegie Clean Energy Annual Report 2024
3
Table of
Contents
2024 has been a year of
immense progress.
The emerging wave energy
industry will benefit our
clean energy transition.
Stay connected with
Carnegie on social media
for interesting insights.
Driving wave energy
innovation through
strategic partnerships.
Carnegie is a leader in
the wave energy industry.
Proudly supporting
several key SDGs.
Delivering our CETO and
MoorPower wave energy
technologies to the world.
A unique asset delivering
revenue to Carnegie from
solar generation.
Information highlighted
from share registry details.
Chairman’s Letter
Social Media
Global Context and
Opportunity
Partnerships and
Collaborative
Ecosystems
Financial Report
04
07
12
20
24
06
10
13
21
22
Company Overview
Our Products
UN Sustainable
Development Goals
Garden Island
Microgrid
Additional
Information
Carnegie Clean Energy Annual Report 2024
4
I am pleased to present the Annual Report
for Carnegie Clean Energy for the financial
year ending 30 June 2024. The past year has
been one of immense progress, marked by
significant strategic accomplishments that
maintain Carnegie’s position as a leader in
the rapidly evolving field of wave energy.
The impacts of climate change drive the critical
need for clean, renewable energy solutions. At
Carnegie Clean Energy, we are steadfast in our
commitment to commercialising wave energy
and playing a pivotal role in supporting the
essential global energy transformation.
The past year has been a testament to the hard
work, creativity, dedication and expertise of
our team. The ACHIEVE Programme is moving
CETO technology closer to commercial reality,
thanks to the support of the EuropeWave
Programme, the Basque Energy Agency, and
the Spanish Government who are providing
combined support of €7.05m ($11.66m) to
facilitate development and demonstration of
CETO in Europe. These funds, in addition to co-
funding provided by the Company, will support
the upcoming deployment of a scaled CETO
prototype at the Biscay Marine Energy Platform
(BiMEP) in 2025. The Company’s co-funding
will come via existing shareholder support
raised in the 2024 Share Purchase Plan and will
also include other financial mechanisms such
as guarantees and loans which may be used
to support cashflow during capital intensive
periods, given the retrospective terms of
several key milestone payments from various
government backed funding sources.
The increasing support and engagement from
regional, national and European governments
represents a significant leap forward, not only
for Carnegie but for the entire wave energy
sector. It signals growing recognition of the
value that wave energy can deliver to enable
an affordable and just clean energy transition
and helps accelerate our journey towards
the growth and profitability that comes with
commercialisation.
The ACHIEVE Programme is a crucial step on
the CETO commercialisation pathway. This
scaled demonstration of CETO technology is
intended to validate the CETO technological
advancements developed over recent years
and deliver the technical and commercial
due diligence required for future large scale
projects with strategic partners. Additionally,
a successful deployment and operation will
help heighten the commercial interest in CETO
through real time demonstration, thus attracting
new commercial partners, and ultimately leading
to a faster time-to-market and broader adoption
of the technology.
In parallel, over the past year, our MoorPower
technology has demonstrated remarkable
potential to reshape offshore energy on barge
type applications.
Letter
From the
Chairman
2024
Carnegie Clean Energy Annual Report 2024
5
MoorPower uses the moorings of offshore
moored vessels to capture energy from the
waves in addition to keeping the vessel in place.
This past year we witnessed the successful
deployment, operation and validation of our
MoorPower scaled demonstrator, made possible
with support from the Blue Economy CRC
and delivered in collaboration with partners
and future aquaculture customers. The data
collected has validated our core design
principles and paved the way for commercial-
scale deployment. The ability to provide clean,
reliable energy to offshore aquaculture and
other maritime industries represents a vast
and untapped market opportunity, and with the
success of the demonstrator, we are actively
pursuing commercial-scale deployments on
operating aquaculture barges.
Carnegie’s pursuit of innovation extends
beyond the technology deployment projects
outlined above. Our global team is also actively
participating in industry research programs
such as MEGA Wave PTO and WECHULL+,
collaborating with industry leaders and engaging
with esteemed academic institutions. Working
with our partner Hewlett Packard Enterprise, we
are also bringing artificial intelligence to ocean
energy, delivering results that can improve
power and control of our CETO technology.
The research projects we participate in
continue to progress the core CETO technology
towards commercialisation with near term
improvements, while also supporting longer
term improvements and innovations that will
continue to drive future costs down.
As we look to the future, I continue to be
optimistic. The wave energy industry is gaining
momentum, with growing recognition of its role
in achieving a sustainable energy mix. Carnegie,
armed with innovative technologies, strategic
partnerships, and our team of passionate
individuals, is well positioned for success during
the renewable energy transition. While the
world has not yet reached the tipping point into
large-scale industrialisation of wave energy,
evidence of how wave energy can benefit our
future clean energy grids is increasing, support
is rising and confidence in commercial success
is growing every year, and this was a big year.
I extend my deepest gratitude to our
shareholders for their continued support. Your
investment in Carnegie is an investment in a
cleaner, greener future for generations to come.
I also express my sincere appreciation to the
Board of Directors, the management team,
and every Carnegie employee for their tireless
dedication and hard work.
Together, we are harnessing the boundless
power of the ocean for a brighter and more
sustainable tomorrow.
Terry Stinson
Non-Executive Chair
Carnegie Clean Energy Annual Report 2024
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Carnegie Clean Energy is an industry
leader in the wave energy sector.
Offering a portfolio of cutting-edge wave energy technologies that harness the ocean’s power to
generate clean, reliable electricity.
Our CETO and MoorPower technologies cater to diverse energy requirements, with the potential to
power a variety of markets, from large utility grids to remote communities and offshore aquaculture
operations.
With a deep understanding of wave energy’s
potential, Carnegie continues to develop and
deploy innovative solutions that support the
world’s transition to net zero. Our extensive
experience spans the entire development
spectrum, from modelling and simulations to
large-scale commercial prototypes.
With a growing global energy demand and
climate change impacts, new sustainable
solutions are vital to augment already deployed
technologies of solar and wind. Wave energy
offers advantages because it provides a
consistent, reliable and predictable energy
source that is complementary to solar and
wind energy. This positions wave energy as a
key player in a renewable energy portfolio that
can be delivered over the coming years. With
its potential to stabilise the energy grid and
minimise the requirement for extensive battery
storage systems, the wave energy industry
is poised for significant growth. Upcoming
projects, including Carnegie’s ACHIEVE
Programme in the Basque Country, are set to
validate the CETO technology, attract further
investment and pave the way for widespread
commercial deployment. Meanwhile, MoorPower
projects in Australia are expanding wave
energy’s applications in the expanding offshore
aquaculture sector.
Listed on the Australian Stock Exchange (ASX:
CCE) and US OTCQB Market (OTCQB: CYGYF),
Carnegie is an Australian company with a global
footprint. Our team of world-class engineers,
scientists, and professionals - driven by a
shared passion for sustainability and renewable
energy, are dedicated to harnessing the oceans
energy to make the world more sustainable.
Company Overview
Carnegie Clean Energy Annual Report 2024
7
Global Context
and Opportunity
Why Wave Energy?
Harnessing the immense energy of the oceans waves presents a reliable and consistent solution
to the global energy challenge, offering a range of benefits that complement the existing
renewable energy mix and enable the required expansion to meet our net zero targets.
The global wave energy resource is vast with estimates indicating a global potential exceeding
29,500TWh (Ocean Energy Europe). In order to understand this measurement, that 29,500 TWh is
roughly equivalent to the global total electricity consumption in 2023 according to the International
Energy Agency. This untapped resource provides a reliable and consistent source of power, particularly
in coastal regions where wave energy is most concentrated. Unlike solar and wind which depend on
specific weather conditions, waves are generated continuously by wind blowing over the ocean’s surface.
This predictability makes wave energy an attractive option for power generation, providing a stable
foundation for both grid and offshore energy generation.
Image credit: Ocean Wave Energy in Australia, 2024.
0
50
100
150
200
250
300
Australia
United States
Chile
New Zealand
Canada
South Africa
United Kingdom
Iceland
Norway
Spain
Portugal
France
Wave Power Resource for Selected Countries
Wave Power [GW]
Carnegie Clean Energy Annual Report 2024
8
We harness
ocean energy
to make the
world more
sustainable.
Wave energy’s natural rhythm complements the
variability of wind and solar power. Waves tend
to be stronger in winter months and often peak
several hours after wind generation, creating
a natural synergy that enhances grid stability
and reduces reliance on energy storage. By
diversifying the renewable energy mix with wave
power, we can move towards a more resilient
and sustainable energy system around the clock.
The potential for wave energy converters to be
co-located with offshore wind farms is being
further explored, a concept that will lead to
cost savings in infrastructure and maintenance.
This synergy further strengthens the case for
wave energy as a key player in the clean energy
transition.
Beyond its grid benefits, wave energy offers
unique advantages. Carnegie’s CETO device is
located offshore and under the surface of the
water, it has minimal visual impact compared
to other renewables. Installation of offshore
technologies such as wave energy as part of
a growing blue economy will stimulate local
economies and expand local supply chains,
creating jobs in manufacturing, installation, and
maintenance. The wave energy industry itself is
rapidly advancing with significant investments
pouring into research and development, driving
down costs and improving efficiency.
As the industry advances, further cost
reductions will be delivered through learning
by doing and learning by research, making
wave energy increasingly competitive with
traditional fossil fuel sources and alternative
renewable energy technologies. Wave energy is
expected to follow a similar cost trajectory as
was seen for both wind and solar energy along
their commercialisation pathways, with scale
being a significant driver of cost reduction and
commercial viability.
Harnessing wave energy creates new and
significant economic, environmental and
technical benefits. Countries are beginning to
recognise these benefits with Europe and the
USA ramping up efforts to provide the support
required to capture the market opportunities.
Australia is lagging behind, but still has a
window of opportunity to develop the vision
and policies required to capture the benefits
associated with the wave energy industry.
In a world grappling with the urgent need to
decarbonise our energy generation, wave energy
represents a compelling solution, offering a
clean, reliable, and abundant source of power
that can help us navigate the challenges of
climate change and build a brighter energy
future.
Carnegie Clean Energy Annual Report 2024
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Wave Energy’s Global
Momentum
With strong government backing, wave energy is riding a
wave of momentum towards rapid expansion and a vital role
in the clean energy transition. Over the coming years, private
investment should be driven into the sector on the back of
strategic visions, roadmaps and policies from global governments.
Co-locating wave and
offshore wind can save up
to 12% in costs. (Offshore
Wind Consultants Ltd, 2023)
Deployment targets and
revenue support are crucial
for industry growth. (Ocean
Energy Europe)
Wave energy could be worth
£19bn to the UK economy
by 2050. (University of
Edinburgh)
France provided a financial
package including at
least €65M for the 17.5
MW FloWatt tidal stream
project. (Ocean Energy
Europe)
12%
29,500TWh
€195M
£19bn
€65M
25GW
€240M
137MW
$112.5M
300GW
Global wave energy
potential exceeds
29,500TWh. (IRENA and
OEE, 2023)
Europe saw €195M public
funding for ocean energy
in 2023. (Ocean Energy
Europe)
The UK has a 25GW wave
energy potential.
(EVOLVE, 2023)
Spain’s ‘RENMARINAS
DEMOS’ Program awarded
€240M to marine
renewables, including
€12.2M to wave energy.
(IDAE)
Wave energy complements
wind and solar for a reliable
power supply. (Ocean Wave
Energy in Australia, 2024)
Europe leads in ocean
energy with a 137 MW project
pipeline. (Ocean Energy
Europe, 2024)
The US announced $112.5M
funding for wave energy
commercialisation. (US
Department of Energy)
The average power of the
ocean waves crossing the
perimeter of Australia’s
continental shelf is
estimated at around 300
GW, ten times Australia’s
average rate of electricity
consumption. (Ocean Wave
Energy in Australia, 2024)
Carnegie Clean Energy Annual Report 2024
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United Nations Sustainable
Development Goals
Carnegie supports the United Nations Sustainable Development Goals (SDGs) to create a better
and more sustainable future for all. As we reflect on the past year, we are proud to share several
key SDGs that resonate with our mission and vision.
Carnegie Clean Energy Annual Report 2024
11
SDG 6: Clean Water and Sanitation:
Ocean energy can power desalination to
transform seawater into clean water, ensuring
access to clean water for coastal communities.
SDG 7: Affordable and Clean Energy:
Carnegie remains at the forefront of the clean
energy revolution. We will continue to develop
affordable, sustainable wave energy solutions
that reduce carbon emissions.
SDG 8: Decent Work and Economic Growth:
Our commitment to innovation and sustainable
practices is not only contributing to
environmental preservation, but also creating
employment opportunities and driving economic
growth in the regions we operate. We believe
that a green economy can be a source of
prosperity for all.
SDG 9: Industry, Innovation, and Infrastructure:
Carnegie is driving innovation in wave energy
infrastructure, leading to advancements that
will benefit industries, economies, and societies
globally. We are committed to technological
excellence and sustainable development.
SDG 11: Sustainable Cities and Communities:
Our work is not only about technology but
also about transforming communities into
sustainable, resilient hubs along our coastlines.
By providing clean energy solutions and
infrastructure, we are empowering coastal
communities to thrive in a rapidly changing
world.
SDG 12: Responsible Consumption and
Production:
We recognise the importance of responsible
consumption and production. By promoting the
use of clean energy, we are contributing to a
more sustainable future, where resources are
used efficiently and sustainably.
SDG 13: Climate Action:
The fight against climate change is a global
priority. We continue to play our part by
harnessing the power of the oceans to generate
clean, renewable energy.
SDG 14: Life Below Water:
Through innovation and responsible ocean
energy solutions, we are committed to
safeguarding the rich biodiversity of our oceans.
SDG 17: Partnerships for the Goals:
None of these achievements would be possible
without the strong partnerships we have
forged with governments, organisations, and
communities around the world. Together, we are
driving towards a sustainable and prosperous
future for all.
In the coming year, Carnegie
remains dedicated to our mission
of delivering clean, sustainable
wave energy solutions and
fostering partnerships that will
support progress against these
Sustainable Development Goals.
Carnegie Clean Energy Annual Report 2024
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Social Media
Stay Connected with Carnegie
Carnegie’s social media channels offer engaging insights into the world of Carnegie and the wave
energy industry. You’ll find interesting industry news, project highlights, and behind-the-scenes
glimpses into our work, team members and partnerships. Connecting with us on our social
media platforms provides a deeper understanding of the wave energy sector and Carnegie Clean
Energy’s role in shaping its future.
We’re excited to see our online community grow as more people join us in the journey towards a
cleaner future. Our LinkedIn platform has welcomed 2,692 new followers this year – a 24% increase.
We appreciate the support and engagement from all who have connected with us to share in our
commercialisation journey. To stay updated with Carnegie’s email newsletter, featuring market updates
and industry news, Scan the QR code provided to find the link to our mailing list.
Connect with Us on Social Media
Join the clean energy conversation and stay connected with Carnegie
Clean Energy on social media. Follow us to discover the latest advancements
in renewable technology, learn about our impactful projects, and be inspired by
the positive change we’re creating together. Scan the QR code to find us on your
preferred platforms and become part of the movement towards a sustainable future.
Carnegie Clean Energy Annual Report 2024
13
CETO® Technology
CETO is Carnegie’s core wave energy converter technology named after a Greek sea goddess. Its
distinctive, fully submerged design operates discreetly beneath the ocean’s surface and converts
the consistent and predictable waves into clean, grid-ready electricity.
This submerged configuration not only minimises visual impact but also enhances CETO’s resilience in
challenging ocean conditions. The units are designed to harmonise with the ocean’s natural rhythm.
While moving with the waves, CETO’s power take-off system efficiently transforms wave energy into
electricity utilising advanced control systems to optimise the performance of the technology.
A versatile and scalable solution for a broad spectrum of applications, CETO can provide energy
independence to remote communities, demand applications and islands in addition to contributing
to large-scale renewable energy grids. As the wave energy industry matures and cost efficiencies are
realised, wave energy is expected to follow a similar growth trajectory observed in solar PV and offshore
wind sectors.
Carnegie is currently validating the CETO technology through the ACHIEVE Programme, which includes
the design, manufacture, deployment and operation of a scaled CETO prototype in Europe.
Our Products
Consistent, Predictable
and Complementary
Provides grid benefits when deployed in
portfolio with other renewables
Minimal Visual Impact
Fully submerged and invisible from
shore
Tested
Over 15 years of onshore, tank and tens of
thousands of hours of in-ocean testing
Flexible
Operates in variety of water depths, swell
directions, tides & seafloor conditions
Storm Survivability
Fully submerged and dives deeper
under extreme wave conditions
Maintainable
Easily towed to port for
upgrades and maintenance
Security
Provides emissions free sustainable
energy and water security to countries
and islands
Scalable
Modular array design
Clean
Minimal environmental impact,
co-exists with and encourages
marine life
Desalination
Zero-emission freshwater
co-production allows pseudo
energy storage
Carnegie Clean Energy Annual Report 2024
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ACHIEVE Programme: Design, Manufacture,
Deployment and Operation of a CETO prototype at BiMEP
Project: Deployment of the CETO wave energy converter at the Biscay Marine Energy Platform (BiMEP) in
Bilbao, Basque Country, Spain.
Deployment Site: BiMEP (Biscay Marine Energy Platform), dedicated testing ground for wave energy
installations.
ACHIEVE Programme
Carnegie and its international subsidiaries
(CETO Wave Energy Ireland and Carnegie
Technologies Spain) continue advancing
the CETO wave energy technology towards
commercial readiness via the ACHIEVE
Programme, which will deploy a CETO
prototype in the Basque Country. The first
CETO deployment in Europe.
Carnegie’s ACHIEVE Programme has received
significant recognition and support, with its
top ranked tender being awarded a contract via
the EuropeWave Pre-Commercial Procurement
(PCP) Programme, and additional grants awarded
by the Basque Energy Agency (Ente Vasco de
la Energía) and the Spanish Government’s
RENMARINAS DEMOS Program.
Carnegie Clean Energy Annual Report 2024
15
Wave energy is
special. A portfolio
of wave, wind
and solar energy
can deliver an
affordable clean
energy future.
CETO Wave Energy Ireland’s successful completion of Phases 1 and 2 of the EuropeWave
programme was followed in September 2023 with the award of a €3.75 million Phase 3 contract
to deploy CETO in Europe.
This award unlocked the deployment of a CETO device at the Biscay Marine Energy Platform (BiMEP)
in the Basque Country. Receiving the highest score in the programme provided the Company with the
strategic advantage of selecting its preferred berth location at BiMEP for the deployment. Achieving and
number one ranking from the original 36 applicants is a testament to the quality of the team and the
CETO technology.
Phase 3 activities under the ACHIEVE Programme commenced immediately in September 2023. The
project has gained further traction through securing a berth reservation at BiMEP, awarding contracts for
critical CETO component design and manufacture, and achieving the crucial Authority to Proceed (ATP)
milestone which reinforces the EuropeWave Buyer’s group’s confidence in Carnegie’s ability to deliver a
successful deployment.
Following the successful award of the EuropeWave Phase 3 Contract and selection of the BiMEP site
in the Basque Country, Spain, Carnegie’s Spanish subsidiary, Carnegie Technologies Spain, secured
additional funding to support the deployment of CETO at BiMEP through the Spanish Government and
regional Basque Energy Agency.
▷
A €1.2 million grant from Spain’s RENMARINAS DEMOS Program is enabling the Company
to extend and enhance the CETO deployment at BiMEP. This includes extending the
operational period to two years, improving wave prediction capabilities, developing
local infrastructure, and fostering collaboration with BiMEP on environmental surveys,
knowledge dissemination, and operations and maintenance.
▷
A €2.1 million grant from the Basque Energy Agency (Ente Vasco de la Energía) is providing
targeted support for crucial CETO components such as the Buoyant Actuator, Mooring
System, Power Take Off, and integration of the Reinforcement Learning Controller. This
funding is not only bolstering local manufacture in the Basque Country but also reducing
technical and financial risks, paving the way for accelerated commercialisation and
increased investor confidence.
Carnegie Clean Energy Annual Report 2024
16
MINISTERIO
PARA LA TRANSICIÓN ECOLÓGICA
Y EL RETO DEMOGRÁFICO
JULIA F. CHOZAS
CONSULTING ENGINEER
CETO
WAVE ENERGY IRELAND
Technologies Spain
EuropeWave PCP Contract: €3.75m
▷
CETO Wave Energy Ireland
▷
Focus: Accelerating wave energy development
▷
Funds a scaled CETO prototype deployment
The EuropeWave project has received
funding from the European Union’s Horizon
2020 Research and Innovation Programme
under grant agreement No 883751.
RENMARINAS DEMOS Grant: €1.2m
▷
Carnegie Technologies Spain
▷
Focus: Advancing marine renewables in Spain
▷
Enhances CETO deployment (extended
operation, wave prediction, infrastructure,
local knowledge)
Basque Energy Agency (EVE) Grant: €2.1m
▷
Carnegie Technologies Spain
▷
Focus: Supporting local involvement, technological
advancements
▷
Targets specific CETO components (Buoyant Actuator,
Mooring System, PTO, RL Controller)
Funding Support for the ACHIEVE Programme
The ACHIEVE Programme is being delivered by Carnegie Subsidiaries CETO Wave Energy Ireland and
Carnegie Technologies Spain with support from Carnegie Clean Energy and additional funders as
outlined below.
External Funding: €7.05m
Technologies Spain
Carnegie Clean Energy Annual Report 2024
17
Additional Research and
Development Activities
In addition to its core CETO product validation
work being undertaken via the ACHIEVE
Programme, Carnegie Clean Energy and its
subsidiaries are active participants in several
international research and development (R&D)
projects. The Company has been selected to
provide technical expertise on two European
research projects that are driving longer term
improvements to wave energy technologies:
▷
The MEGA Wave PTO Project, focused on
advancing the power generation technology
options for wave energy converters.
▷
The WECHULL+ Project, centred around
developing sustainable and environmentally
friendly concrete structures for offshore
structures like wave energy converters.
These engagements utilise our team’s technical
expertise in wave energy technology to further
innovation within the sector. By actively
participating in these initiatives, we continue to
contribute to the advancement of wave energy
development.
The company’s involvement in these projects
also provides access to a variety of industry
expert knowledge, ensuring that Carnegie stays
at the forefront of technological advancements
and can use that know-how to benefit
the commercialisation of our wave energy
technologies. Participation in ongoing R&D
creates opportunities to learn valuable lessons
from the projects and also support the growth
of the wave energy industry.
Industry Partnerships and
Engagement
Over the past year, Carnegie has increased
industry engagement with potential supply chain
partners across Europe. The engagement and
partnerships developed with the supply chain
for the ACHIEVE Programme are important as
they also support the ongoing validation and
commercialisation of the CETO technology.
This year also delivered strengthened existing
industry partnerships such as with Hewlett
Packard Enterprise (HPE) on the development
of the Reinforcement Learning based advanced
controller for CETO. In addition to delivering
technical value to the commercialisation
of CETO, the partnership is also enabling
Carnegie to reach new audiences. During the
year, Carnegie’s collaboration with HPE was
highlighted through several media pieces and at
the HPE Discover Conference at in Las Vegas,
USA, a key technology event in the USA.
Carnegie and HPE’s collaboration was discussed
by HPE’s CEO during his keynote address at HPE
Discover, held in Sphere, Las Vegas. In addition,
during the event Carnegie’s CEO presented in
a session focused on how AI is revolutionising
industries and driving innovation. Our work got
further exposure through the CETO animation
and model wave tank which were displayed in
the HPE DIscover Showcase, for over 14,000
people in attendance at the Venetian Exhibition
Centre in Las Vegas.
Carnegie Clean Energy Annual Report 2024
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MoorPower® Technology
As the aquaculture sector moves operations
further offshore, new challenges are
encountered to access clean and reliable
energy. Without shore-based power, energy
intensive offshore aquaculture operations
such as feeding barges are reliant on diesel
generators with many associated costs,
risks and carbon emissions. This is also true
of many moored vessels across the blue
economy.
Carnegie’s solution to address this challenge
is MoorPower, a spin-off technology that
incorporates core aspects of Carnegie’s CETO
technology and know-how into a novel wave
energy converter system for use in offshore
energy demand applications. The first market
for this product is expected to be aquaculture
barges and vessels that require energy for
electrical loads operating offshore. Carnegie’s
new wave power product addresses the
challenge of securing clean and reliable energy
offshore and replaces the diesel generation that
would otherwise be required.
The concept and vision for MoorPower grew
out of engagement with stakeholders in the
Blue Economy CRC (BE CRC) including key
aquaculture companies and their technology
providers, ensuring that Carnegie understood
their requirements, constraints and challenges.
In order to deliver MoorPower to the market,
Carnegie is undertaking a strategic development
pathway that is ultimately intended to lead to
commercial roll out of the technology. During
2024, the Company achieved the significant
milestone of the deployment and validation
of the MoorPower Scaled Demonstrator and is
moving into the next phase, working towards
securing the first commercial prototype on an
operational feeding barge.
Our Products
MoorPower deployed at Carnegie’s
offshore test site in North
Fremantle, Western Australia.
Carnegie Clean Energy Annual Report 2024
19
MoorPower Scaled Demonstrator Project
Following the successful design process in previous years, the team completed the manufacture,
assembly and onshore testing of the MoorPower scaled demonstrator at the onsite facilities
in preparation for deployment in the summer of 2024. In January 2024, the demonstrator was
deployed at Carnegie’s offshore test site in North Fremantle, Western Australia, as part of the
$3.4 million Blue Economy CRC funded project.
The successful deployment in early 2024 marked
an exciting step in the commercialisation
pathway of the technology and allowed future
customers (and project partners) to see the
technology in action, watch the live data coming
into Carnegie’s facility, and learn from the data
collected during the deployments.
The Scaled Demonstrator deployments have
provided critical data that has now successfully
validated the functional design and numerical
modelling of the system in various sea
conditions.
The core design has been proven with the
MoorPower modules functioning as predicted.
The numerical models were validated using
Demonstrator performance data and commercial
feeding barge motion data, providing confidence
in Carnegie’s ability to forecast the performance
of the Commercial MoorPower system for a
variety of barges globally.
Following the successful deployment of the
MoorPower Scaled demonstrator, Carnegie is
actively working towards a commercial scale
deployment of the MoorPower modules onboard
a working aquaculture barge.
Concept
Done: Develop novel MoorPower product
in response to offshore aquaculture
requirements.
Requirements
and Goals
Done: Requirement not to negatively impact
customer operations. Annual average power
produce is more than 50% of the annual
average energy required.
Scaled
Demonstrator
Done: Scaled Demonstrator design.
Done: Scaled demonstrator deployment to
validate functional design and numerical
model.
Commercial
Prototype
Commenced: Commercial Design.
Next: Deploy MoorPower system on
operational aquaculture barge.
Commercial
Rollout
Future: Roll out MoorPower systems to
decarbonise global offshore aquaculture and
other offshore industries.
MoorPower Commercialisation Pathway
Carnegie Clean Energy Annual Report 2024
20
MINISTERIO
PARA LA TRANSICIÓN ECOLÓGICA
Y EL RETO DEMOGRÁFICO
CETO
WAVE ENERGY IRELAND
Technologies Spain
Carnegie’s collaborative approach drives wave energy innovation through strategic partnerships
with project developers, industry leaders, research institutions, and global industry associations.
These collaborations accelerate technology commercialisation, enhance performance, and reduce costs,
while ensuring Carnegie is at the forefront of wave energy technology developments.
Partnerships and
Collaborative Ecosystems
C
E
T
O
A
C
H
I
E
V
E
P
R
O
G
R
A
M
M
E
CETO DEVELOPMENT
ACHIEVE PROGRAMME
MOORPOWER
M
O
O
R
P
O
W
E
R
CETO
WAVE ENERGY IRELAND
Carnegie Clean Energy Annual Report 2024
21
One of Carnegie’s unique assets is its 100%
ownership of the Garden Island Microgrid
(GIMG), located on HMAS Stirling in Western
Australia. The Garden Island Microgrid
system includes the following:
Garden Island
Microgrid
Carnegie sells clean renewable energy
from the Garden Island Microgrid to
the Department of Defence under
an Electricity Supply Agreement. In
addition, as a registered renewable
energy power station, one Large-Scale
Generation certificate (LGC) is created
for every megawatt-hour (MWh) of
eligible electricity generated by Garden
Island Microgrid. These LGCs are held
by the Company and periodically sold in
batches. During the year, the sale of LGCs
generated $117,616 in revenue for the
Company.
The asset also offers a unique opportunity
for future wave energy projects through
its available electrical connection point,
existing offshore infrastructure, and
ability to sell power through the existing
Electricity Supply Agreement. The offshore
wave lease area was the site of Carnegie’s
previous Perth Wave Energy Project and
any future projects could benefit from
the previous site data and infrastructure
investments made at the site.
This year the Garden Island Microgrid
passed a generation milestone, exceeding
5,000 tonnes of carbon emissions
avoidance.
2MW Battery Energy
Storage System
2MW Solar
PV Array
Offshore lease area
for wave energy
Onshore electrical connection
point for future wave energy
deployments in Carnegie
offshore lease area
Carnegie Clean Energy Annual Report 2024
22
Additional Information
Spread of Holdings
Number of holders of ordinary shares
1 - 1,000
3,827
1,001 - 5,000
3,220
5,001 - 10,000
1,444
10,001 - 100,000
2,652
100,001 and over
471
Number of Holders:
11,614.
Number of Shareholders
holding less than a
marketable parcel:
8,791 at share price of
$0.039.
Voting Rights: All ordinary shares carry one vote per share without restriction. Options for ordinary
shares do not carry any voting rights.
Statement of Quoted Securities: Listed on the Australian Stock Exchange are 366,203,472 fully paid
shares. All ordinary shares carry one vote per share without restriction. Options for ordinary shares do
not carry any voting rights.
Company Secretary: The name of the Company Secretary is Grant Jonathan Mooney.
Registered Office: The registered office is at 21 North Mole Drive, North Fremantle WA 6169. The
telephone number is (08) 6168 8400.
Twenty Largest Holders of Each Class of Quoted Equity Securities - Ordinary Fully Paid Shares
Shareholder Name
Number of Shares
%
Citicorp Nominees Pty Limited
25,801,309
7.05%
HSBC Custody Nominees (Australia) Limited
22,121,923
6.04%
BNP Paribas Nominees Pty Ltd
18,003,794
4.92%
Asymmetric Credit Partners Pty Ltd
15,539,710
4.24%
HSBC Custody Nominees (Australia) Limited - A/C 2
8,994,637
2.46%
Dawnray Pty Ltd
8,607,273
2.35%
Richcab Pty Limited
8,057,273
2.20%
Mr Grant Jonathan Mooney
5,000,000
1.37%
Mr Barry Leslie Ramsay
4,500,000
1.23%
Daws & Son Pty Ltd
3,571,440
0.98%
Substantial Shareholders
Shareholder Name
Number of Shares
%
Log Creek Pty Ltd (88 Green account)
20,430,709
5.58%
Additional information required by the Australian Stock Exchange Limited
Listing Rules and not disclosed elsewhere in this report. The information was
prepared based on share registry information processed up to 3 October 2024.
Carnegie Clean Energy Annual Report 2024
23
N & C Watts Super Pty Ltd
3,100,000
0.85%
BNP Paribas Noms Pty Ltd
2,151,562
0.59%
Ocean Flyers Pty Ltd
2,000,000
0.55%
Hurose Pty Ltd
1,963,586
0.54%
Fraser Investment Holdings Pty Ltd
1,926,504
0.53%
Miss Michelle Rosalie Smith
1,693,925
0.46%
Mr Carl Gianatti & Mrs Margaret R Gianatti
1,598,395
0.44%
Miss Lynn Clare Murray
1,595,684
0.44%
Merrill Lynch (Australia) Nominees Pty Limited
1,406,351
0.38%
GFSF Super Pty Ltd
1,400,000
0.38%
Total
139,033,366
37.97%
Holders of Securities in an Unlisted Class - Options Issued Under Employee Incentive Plan
(Management And Staff)
Optionholder Name
Option
Code
No.
Options
Exercise Price
$
Expiry Date
Mr Jonathan Fiévez
CCEOPT11
3,000,000
$0.18000
13/10/2024
Terry Dewayne Stinson
CCEOPT12
2,000,000
$0.18000
22/11/2024
A&J Shields Co Pty Ltd
CCEOPT12
2,000,000
$0.18000
22/11/2024
Mr Grant Mooney
CCEOPT12
2,000,000
$0.18000
22/11/2024
Terry Dewayne Stinson
CCEOPT15
2,000,000
$0.15000
25/11/2024
Management & Staff
CCEOPT16
6,600,000
$0.06500
24/07/2026
Mrs Paula Louise Fiévez
CCEOPT16
3,000,000
$0.06500
24/07/2026
Total
20,600,000
Holders of Securities in an Unlisted Class - Options
Optionholder Name
Option Code
No. Options
Exercise Price $
Expiry Date
Cameron Charles Griffin
CCEOPT12
1,600,000
$0.1800
22/11/2024
Vicki Wendy Groat
CCEOPT12
400,000
$0.1800
22/11/2024
Asymmetric Credit Partners
Pty Ltd
CCEOPT04
5,000,000
$0.0625
28/10/2024
Total
7,000,000
Carnegie Clean Energy Annual Report 2024
24
CARNEGIE CLEAN ENERGY LIMITED
ABN 69 009 237 736
AND CONTROLLED ENTITIES
FINANCIAL REPORT
FOR THE YEAR ENDED
30 JUNE 2024
Carnegie Clean Energy Annual Report 2024
25
CARNEGIE CLEAN ENERGY LIMITED
ABN 69 009 237 736
AND CONTROLLED ENTITIES
CONTENTS
Page No.
_________________________________________________________________________________________
DIRECTORS' REPORT ........................................................................................................ 3
AUDITOR’S INDEPENDENCE DECLARATION .... ……………………….…...……………15
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME ............................................................................................. 16
CONSOLIDATED STATEMENT OF FINANCIAL POSITION............................................ 17
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ............................................ 18
CONSOLIDATED STATEMENT OF CASH FLOWS ......................................................... 19
NOTES TO THE FINANCIAL STATEMENTS .................................................................... 20
CONSOLIDATED ENTITY DISCLOSURE STATEMENT ................................................. 41
DIRECTORS' DECLARATION ........................................................................................... 42
INDEPENDENT AUDITOR’S REPORT………………………………………………….……43
26
38
39
40
41
42
43
64
65
66
Carnegie Clean Energy Annual Report 2024
26
CARNEGIE CLEAN ENERGY LIMITED
ABN 69 009 237 736
AND CONTROLLED ENTITIES
DIRECTORS' REPORT
30 JUNE 2024
The Directors present their report on Carnegie Clean Energy Limited ("the Company", or “Carnegie”) and its
controlled entities, ("the Group") for the financial year ended 30 June 2024.
DIRECTORS
The Directors of the Company in office at any time during or since the end of the financial year are:
Terry Stinson B.Bus Admin (Magnum Cum Laude) (Chairman) – appointed 15 November 2017
Mr Stinson has over 30 years of executive leadership and non-executive director experience with innovation
companies globally. He was formerly the Chief Executive Officer and Managing Director of Orbital Corporation
Ltd, until his resignation as a director on 18 November 2019. He was a former Vice President and General
Manager at Siemens AG, Chief Executive Officer and Managing Director at Synerject, Vice President at
Manufacturing Outboard Marine Corporation, and Director Advanced Product and Process Development at
Mercury Marine, a division of Brunswick Corp.
Mr Stinson is currently a Non-Executive Chair Talga Group Ltd, appointed February 9, 2017, and Engentus Pty
Ltd, appointed April, 2021. As well as Non-Executive Director of Aurora Labs, appointed 26 February 2020.
Michael Fitzpatrick AO B.Eng (Hons), B.A (Hons), M.A (Oxon) (Non-Executive Director) – appointed 28
November 2012
Committed to sustainability, Mr Fitzpatrick is a pioneer in renewable investments, including investing in Pacific
Hydro, developer of the first commercial windfarm in Australia in the 1990s and the Ord Hydro-Electric Scheme.
He founded the infrastructure investment firm, Hastings Funds Management Limited, managing investments of
over $3.8 billion.
Mr Fitzpatrick is an Alternative Director of Foresight Australia Limited (previously Infrastructure Capital Group),
manager of Australian Infrastructure Fund Limited, a billion dollar renewables fund owning wind, solar and hydro
assets.
He was a former Director of Rio Tinto Limited and Chairman of the Australian Football League.
Mr Fitzpatrick is the Chairman and Director of LATAM Autos Limited which was a listed company until 8 May
2020.
Grant Mooney B.Bus, CA (Non-executive Director and Company Secretary) – appointed 19 February 2008
Mr Mooney is the principal of Perth-based corporate advisory firm Mooney & Partners, specialising in corporate
compliance administration to public companies. Mr Mooney has gained extensive experience in the areas of
corporate and project management since commencing Mooney & Partners in 1999. His experience extends to
advice on capital raisings, mergers and acquisitions and corporate governance. Currently, Mr Mooney serves
as a Director to several ASX listed companies across a variety of industries including technology and resources.
He is a Director of Gibb River Diamonds Limited, appointed 14 October 2008, Accelerate Resources Limited,
appointed 1 July 2017, Talga Group Limited, appointed 20 February 2014, Aurora Labs Limited appointed 25
March 2020, CGN Resources Limited appointed 1 July 2023 and Riedel Resources Limited appointed 31
October 2018. He was a previous Director of Greenstone Resources Limited (formerly Barra Resources
Limited), until his resignation on 18 August 2021, and SRJ Technologies Limited, until his resignation on 17
January 2023. Mr Mooney is also a member of Chartered Accountants Australia and New Zealand.
Carnegie Clean Energy Annual Report 2024
27
CARNEGIE CLEAN ENERGY LIMITED
ABN 69 009 237 736
AND CONTROLLED ENTITIES
DIRECTORS' REPORT
30 JUNE 2024
Anthony Shields B.Bus (Non-Executive Director) - appointed 25 November 2019
Mr Shields is the Managing Director of Asymmetric Investment Management Fund Pty Ltd (Asymmetric), a
Perth-based investment manager specialising in private debt, venture capital and risk management. He also
sits on a number of other non-listed company boards both in Executive and Non-Executive capacities
(Asymmetric Investment Management, Source Certain International, NWQ Capital and Old Perth Port). Prior to
Asymmetric, Mr Shields established and managed an investment portfolio for a family office in Perth, Western
Australia. He currently sits on the investment committee of Canci Group advising on investment strategy and
portfolio management. Prior to his family investment roles, Mr Shields worked for Deutsche Bank in equity and
derivatives sales and trading, and for Macquarie Bank as an equity analyst and in institutional equity sales and
trading.
Mr Shields has not been a director of any other listed Company in the last three years.
At the date of this report, the direct and indirect interests of the Directors in the shares and options of the Company
were:
ORDINARY
SHARES
OPTIONS
Terry Stinson (i)
644,000
4,000,000
Michael Fitzpatrick (ii)
20,430,709
-
Grant Mooney (iii)
7,000,000
2,000,000
Anthony Shields (iv)
15,539,710
7,000,000
i.
Mr Stinson has an interest in 644,000 ordinary shares and 4,000,000 options which are held by Terry
Stinson .
ii.
Mr Fitzpatrick is a Director of Log Creek Pty Ltd and therefore is deemed to have an interest in 20,430,709
ordinary shares held by Log Creek Pty Ltd.
iii.
Mr Mooney is a Director of Ocean Flyers Pty Ltd and is therefore deemed to have an interest in 2,000,000
ordinary shares. Mr Mooney also holds 5,000,000 ordinary shares and 2,000,000 options in his own name.
iv.
Mr Shields is a Director of Asymmetric Credit Partners Pty Ltd and therefore is deemed to have an interest
in 15,539,710 ordinary shares and 5,000,000 options held by Asymmetric Credit Partners Pty Ltd and
2,000,000 options are held by A&J Shields Pty < A&J Shields Family account>.
COMPANY SECRETARY
Mr Grant Mooney held the position of company secretary during the financial year and to the date of this report.
PRINCIPAL ACTIVITIES
The principal activity of the Group during the year was the development of the CETO Wave Energy Technology.
OPERATING RESULTS
The net loss the Group for the financial year ended 30 June 2024 was $2,320,225 (2023: loss of $630,396).
DIVIDENDS
The Directors do not recommend the payment of a dividend for the financial year ended 30 June 2024. No
dividends were paid during the financial year.
Carnegie Clean Energy Annual Report 2024
28
CARNEGIE CLEAN ENERGY LIMITED
ABN 69 009 237 736
AND CONTROLLED ENTITIES
DIRECTORS' REPORT
30 JUNE 2024
REVIEW OF OPERATIONS
During the year to 30 June 2024, the Group’s activities included the following:
Product Development
Carnegie and its subsidiaries have secured and are delivering several project contracts which are supporting
the Company’s core product development activities.
CETO Wave Energy Technology: Carnegie’s core wave energy technology, a submerged point absorber type
wave energy converter which converts ocean waves into zero-emission electricity
During the period, the team made significant strides in advancing CETO technology towards
commercialisation, with key activities undertaken as part of the Company's ACHIEVE Programme and
supported by the EuropeWave Pre-Commercial Procurement (PCP) Programme. Building upon
successful completion of Phase 1 and Phase 2 of EuropeWave, the Company secured a €3.75m
EuropeWave Phase 3 contract in September 2023 to deploy CETO at the Biscay Marine Energy
Platform (BiMEP) in the Basque Country, having received the highest score among competitors. Phase
3 activities commenced in September 2023, with an expected completion date of May 2026.
To date, key activities for the ACHIEVE Programme have included the signing of a Berth Reservation
at Carnegie’s preferred deployment location at BiMEP, the issue of various contracts for design and
manufacture of key components of CETO and passing the Authority to Proceed (ATP) milestone of its
EuropeWave Phase 3 contract. The ATP represented a significant milestone in the ACHIEVE
Programme as it signifies confidence from the EuropeWave Buyer’s Group in the team’s ability to deliver
a successful deployment.
In September 2023, the Company’s wholly owned subsidiary Carnegie Technologies Spain (CTS) was
selected to receive a €1.2m grant as part of Spain’s first competitive call of the RENMARINAS DEMOS
Program, which funds marine renewable energy projects in Spain. This additional funding complements
the EuropeWave contract for ACHIEVE and enables additional activities to be delivered for this key
CETO deployment in Europe. This includes funding a second year of CETO operations at BiMEP,
enhanced wave prediction capabilities, as well as supporting local engagement, infrastructure and
operations and maintenance.
In March 2024, Carnegie Subsidiary CTS was awarded further support of €2.1m ($3.5m AUD) for the
ACHIEVE Programme through the Basque Energy Agency - Ente Vasco de la Energia (EVE). These
additional funds will further support the deployment of CETO at BiMEP, financing local CETO Buoyant
Actuator manufacture and enhancements to the Mooring System. This grant will also support the
integration of the Reinforcement Learning Controller into the ACHIEVE Programme, a technology
developed through the ongoing collaboration with Hewlett Packard Enterprise and HPE Spain.
Subsequent to the period end, Carnegie was selected as a Technical Support Recipient under the U.S.
Testing Expertise and Access to Marine Energy Research (TEAMER) program. The Project was
awarded $95,000 to support a collaborative project that brings together the extensive modelling and
testing expertise of both Carnegie and the National Renewable Energy Laboratory (NREL), a national
laboratory of the US Department of Energy. The project will tackle the challenge of predicting accurate
loads in extreme wave events, an important aspect of survivability in wave energy converters.
The Company’s wholly owned subsidiary CETO Wave Energy Ireland (CWEI) was also selected to
participate in two European research and development projects.
o
CWEI awarded €45,238 to participate as an industry partner as wave energy converter use
case for the WECHULL+ project. The project will be delivered by a European consortium
through the Clean Energy Transition Partnership program. The funding provides an opportunity
for CWEI to engage in the development of a novel concrete material for wave energy converter
hulls, which could deliver valuable technical and commercial improvements to CETO.
o
CWEI awarded €38,000 to participate as an industry partner in the Mega Wave PTO Project
funded by the European Commission to deliver improvements in power take-off systems. The
project will be delivered by a consortium of European and UK partners and CETO will serve as
one of the wave energy technologies represented in the consortium.
Carnegie Clean Energy Annual Report 2024
29
CARNEGIE CLEAN ENERGY LIMITED
ABN 69 009 237 736
AND CONTROLLED ENTITIES
DIRECTORS' REPORT
30 JUNE 2024
CETO Wave Energy Technology (continued)
The technical and commercial promise of the CETO technology is reaffirmed by support received
through competitive EuropeWave PCP Programme for the advancement of wave energy technologies,
Spanish Government’s RENMARINAS DEMOS Program and Basque regional energy agency EVE’s
support. The Company’s ongoing commitment to CETO technology optimisation is also evident in its
selection to participate in the TEAMER program and the WECHULL+ and Mega Wave Projects.
Carnegie’s collaboration with Hewlett Packard Enterprise on implementing reinforcement learning
control for CETO was highlighted during the keynote at HPE Discover at Sphere, Las Vegas with
thousands of visitors also introduced to CETO through a wave tank and animation at the exhibition.
MoorPower Wave Energy Technology: A CETO derived wave energy technology designed to deliver a
sustainable energy supply for marine industries operating at a fixed moored location, reducing the reliance on
diesel.
The team has delivered the manufacture, assembly onshore and offshore testing of the MoorPower
scaled demonstrator as part of the $3.4m MoorPower Scaled Demonstrator Project. This Project is
supported by the Blue Economy CRC and is being delivered in collaboration with a strong consortium
of partners including Huon Aquaculture and Tassal Group. Aquaculture industry partners Huon and
Tassal could become the first adopters of the MoorPower commercial product.
The MoorPower Demonstrator was deployed and operated in Carnegie’s offshore test site in January
2024, immediately offshore from the Company’s onshore research facility in North Fremantle, Western
Australia.
The MoorPower Demonstrator has achieved many significant milestones during its initial operational
phase, with over 2,000 hours of operational data captured and analysed to date. During winter storms,
the system tackled significant conditions including up to 2.36m Hmax. The core design of MoorPower
has been proven with the Modules operating as predicted. In addition, the Company’s modelling of the
Demonstrator and future commercial units has been validated against data gathered from the operating
Demonstrator and an operating feeding barge in Tasmanian waters to support the commercialisation
pathway.
Mooring Tensioner Technology: A component which provides passive tension required for rotary electric
power take-off systems, such as is required for CETO and MoorPower.
The team progressed development of the Mooring Tensioner via the MoTWEC (Mooring Tensioner for
the Wave Energy Converters) Project, supported by the Blue Economy CRC and being delivered in
collaboration with partners.
Project partner Advanced Composite Structures Australia (ACS-A) and Carnegie previously designed a
Mooring Tensioner prototype that was manufactured by ACS-A. Carnegie designed and constructed a
test rig that is capable of undertaking functional and fatigue testing on the prototype which is located at
the Company’s onshore research facility in Western Australia. During the period, testing has been
undertaken with some breaks in operation for inspection and repair works.
Garden Island Microgrid
Under Carnegie’s Power Supply Agreement, the Department of Defence continues to purchase all
power produced by the Garden Island Microgrid.
During the period, Carnegie and a supplier agreed, without admission of liability, to settle a dispute
related to the provision of solar panels to the Garden Island Microgrid on terms set out in a Deed of
Settlement and Release. As part of the Settlement, the supplier paid to Carnegie the sum of $1,534,648
in consideration for releases provided by both parties.
During the period, Carnegie sold a batch of Large-Scale Generation Certificates acquired through the
continued solar generation from the Garden Island Microgrid, delivering $117,616 in revenue.
Carnegie Clean Energy Annual Report 2024
30
CARNEGIE CLEAN ENERGY LIMITED
ABN 69 009 237 736
AND CONTROLLED ENTITIES
DIRECTORS' REPORT
30 JUNE 2024
Corporate
The Company’s Annual General Meeting (AGM) was held on November 14, 2023. All resolutions were
passed.
At the AGM, a resolution was passed to undertake a consolidation of capital. Every 50 shares were
consolidated into 1 share. The options currently on issue were also consolidated in accordance with
Listing Rule 7.22.1. Trading in the shares transitioned to a post consolidation basis on 16 November
2023.
During the period, a Share Purchase Plan (SPP) was completed with eligible Shareholders. Through
the SPP a total of $2.134 million was raised to support Carnegie to deliver the first European CETO
deployment at BiMEP.
Carnegie completed US listing onto the OTCQB, becoming dual listed. This provides real-time access
for institutional and retail investors in North America in US dollars, increases liquidity and increases
access to capital in the US.
FINANCIAL POSITION
The net assets of the Group decreased by $126,123 from $21.22 million to $21.10 million as at 30 June 2024.
This is predominantly the result of the net loss for the period offset by the $2.134 million of share capital raised via
the SPP.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
There has been no other significant change in the state of affairs of the Group to the date of this report.
SIGNIFICANT EVENTS SUBSEQUENT TO YEAR END
On 1 July 2024 the company received the funds associated with the $2.134 million (before costs) SPP which were
being held on trust by Automic Group who acted as lead broker for the SPP that was completed on 26 June 2024.
There has not been any matter or circumstance that has arisen after balance date that has significantly affected,
or may significantly affect, the operations of the Group, the results of those operations, or the state of affairs of the
Group in future financial periods.
FUTURE DEVELOPMENTS, PROSPECTS AND BUSINESS STRATEGIES
Strategy
The Company has two major focus areas: commercialising the CETO and MoorPower technologies. In the interest
of astute capital management, Carnegie has looked for, and found, programmes and organisations to financially
support these developments.
For CETO, the strategy has been to secure continued support via the EuropeWave programme since it aligns
perfectly with the technology roadmap and provides significant funding to complete the companies first ocean
deployment in Europe as part of Carnegie’s ACHIEVE Programme. Europe is the most attractive jurisdiction for
wave energy deployments currently given the targets set by the EU and the support on offer.
The focus on EuropeWave paid off with a €3.75m contract awarded for Phase 3 in early September 2023.
Additionally, the work on Phase 2 and the bid for Phase 3 was ranked first amongst the three finalists selected,
giving Carnegie first choice of the deployment sites on offer. Carnegie selected the Biscay Marine Energy Platofrm
(BiMEP) an offshore test site in the Basque Country, Spain.
In addition, during the year, Carnegie secured additional support through the Spanish Government (€1.2m) and
Basque Energy Agency (€2.1m) that provides additional capital support to the ACHIEVE Programme’s deployment
of CETO at BiMEP.
Carnegie Clean Energy Annual Report 2024
31
CARNEGIE CLEAN ENERGY LIMITED
ABN 69 009 237 736
AND CONTROLLED ENTITIES
DIRECTORS' REPORT
30 JUNE 2024
FUTURE DEVELOPMENTS, PROSPECTS AND BUSINESS STRATEGIES (continued)
Strategy (continued)
The strategy going forward is to use the European deployment of CETO through the ACHIEVE Programme to
attract a partner to drive development of future projects, including a first array project. Importantly, being awarded
top ratings in the EuropeWave programme also provides 3rd party assessment of the technology and the
company, crucial inputs to the investment decisions of a project partner.
For MoorPower, the strategy has also been to demonstrate the technology in order to build confidence within the
pool of potential customers. This is why the company has, with the support of the Blue Economy CRC, formed
and executed a project to deploy a scaled demonstration of the MoorPower system on a barge.
The MoorPower Scaled Demonstrator project was deployed in January 2024 and completed several months of
operations. With initial operational analysis validating the design and numerical models, the team is progressing
to work towards securing funding to deliver the next phase of the MoorPower technology roadmap, a commercial
prototype on an operating barge. This involves working with project partners, Huon and Tassal, together with the
Blue Economy CRC to form the project that will see the MoorPower system at commercial scale installed on a
working feed barge.
Risks
The need for renewable energy is only increasing. Governments are progressively recognising the growing risk
that climate change and other related pollutants pose to health and security. There are various mechanisms in
place in the major markets of the USA and Europe that support the energy transition with specific elements that
focus on the emerging field of ocean energy. Whilst this support is currently growing, risks are present due the
reluctance of governments and agencies to take a long term view in the face of the worsening crisis.
Technologies that are mature may potentially take a larger share of the support available as they are deployable
at scale today.
At the project level, risks are present for CETO (and the future planned commercial MoorPower prototype) with
finalising the design and securing supply of critical components. While the designs of both CETO and
MoorPower seek to predominantly use off-the-shelf items, some are bespoke and a limited number of suppliers
exist to provide them. This could delay the deployment or result in poor performance or reliability once in service.
In the coming 12-18 months, risks are also present for CETO related to the assembly, deployment and operation
of the CETO unit at BiMEP.
For MoorPower, the risks related to deployment have reduced given the completion of the first successful
operational campaign of the MoorPower Demonstrator. Deployment risks could be introduced again depending
on plans for future deployments of the Demonstrator. Current risks for the MoorPower technology are related
to securing and then delivering the commercial prototype on an operational barge – including finalising the
commercial aquaculture host, securing funding and delivering in compliance with operational requirements of
the aquaculture host.
ESG factors are predominantly positive for the Company but some risks remain. With any deployed equipment
there is a risk that they break free and do environmental damage to an area where they rest. Given there are
negligible fluids or chemicals onboard both CETO and MoorPower, any damage is likely to be minor. This would
however impact the social licence that wave energy acquires fairly easily due to its minimal visual impact.
As the Group continues to develop its proprietary technologies, it expects to have a net decrease in cash from
operating activities until it achieves positive cash flow.
The Group cannot say with certainty when it will become profitable because of the uncertainties associated with
successfully commercialising a wave energy technology. If existing resources are insufficient to satisfy the
liquidity requirements, the Group may seek to sell its solar microgrid asset, issue additional equity or debt
securities or obtain credit facilities. If the Group is unable to obtain required financing, it may be required to
reduce the scope of its planned product development and commercialisation efforts which could adversely affect
its financial position and operating results.
Carnegie Clean Energy Annual Report 2024
32
CARNEGIE CLEAN ENERGY LIMITED
ABN 69 009 237 736
AND CONTROLLED ENTITIES
DIRECTORS' REPORT
30 JUNE 2024
FUTURE DEVELOPMENTS, PROSPECTS AND BUSINESS STRATEGIES (continued)
Conclusion
Carnegie is positioned incredibly well to capitalise on the global ambition to decarbonise energy production at
all levels. At utility scale, project developers and utilities are both aiming to be at the forefront of this emerging
technology and are actively looking for the leading companies in the field. Governments are looking to ensure
that they secure the sovereign capability that comes with the first mover advantage.
For MoorPower customers, the demands for ESG reporting, particularly around emissions, are leading them to
look for diesel replacements. This is evident in the first market for MoorPower, the aquaculture feeding barge
market.
With two physical demonstration projects underway in Europe and Australia, Carnegie is now in a phase of high
visibility which will rapidly build credibility with the supporting agencies and future customers. This is also likely
to stimulate investors and build upon the strong financial position the company is in today.
As the Group continues to develop its proprietary technologies, it expects to have a net decrease in cash from
operating activities until it achieves positive cash flow.
The Group cannot say with certainty when it will become profitable because of the uncertainties associated with
successfully commercialising a wave energy technology. If existing resources are insufficient to satisfy the
liquidity requirements, the Group may seek to sell its solar microgrid asset, issue additional equity or debt
securities or obtain credit facilities. If the Group is unable to obtain required financing, it may be required to
reduce the scope of its planned product development and commercialisation efforts which could adversely affect
its financial position and operating results.
ENVIRONMENTAL ISSUES
The Group is required to carry out its activities in accordance with the laws and regulations in the areas in which
it undertakes its activities. There have been no known significant breaches of these laws and regulations.
SHARE OPTIONS
At the date of this report, there were:
5,000,000 options outstanding in respect of unissued ordinary shares exercisable at $0.06250 per share
on or before 28 October 2024,
3,000,000 options outstanding in respect of unissued ordinary shares exercisable at $0.18 per share on
or before 13 October 2024,
8,000,000 options outstanding in respect of unissued ordinary shares exercisable at $0.18 per share on
or before 22 November 2024.
8,600,000 options outstanding in respect of unissued ordinary shares exercisable at $0.15 per share on
or before 28 September 2024.
2,000,000 options outstanding in respect of unissued ordinary shares exercisable at $0.15 per share on
or before 25 November 2024.
9,600,000 options outstanding in respect of unissued ordinary shares exercisable at $0.065 per share on
or before 24 July 2026.
No person entitled to exercise options had or has any right by virtue of the option to participate in any share
issue of the company or any other body corporate.
No options were exercised during the year or up to the date of the report.
INDEMNIFYING OFFICERS
During or since the year end, the Company has given an indemnity or entered an agreement to indemnify, the
Directors against certain risks they are exposed to as Directors of the Company.
Carnegie Clean Energy Annual Report 2024
33
CARNEGIE CLEAN ENERGY LIMITED
ABN 69 009 237 736
AND CONTROLLED ENTITIES
DIRECTORS' REPORT
30 JUNE 2024
REMUNERATION REPORT - AUDITED
This report details the nature and amount of remuneration for each Director of Carnegie Clean Energy Limited and
other Key Management Personnel (KMP) being the Chief Executive Officer, Mr Jonathan Fievez.
Remuneration Policy
The remuneration policy of Carnegie Clean Energy Limited has been designed to align KMP objectives with
shareholder and business objectives by providing a fixed remuneration component and offering specific long-
term incentives based on key performance areas affecting the Group’s financial results. The Board of Carnegie
Clean Energy Limited believes the remuneration policy to be appropriate and effective in its ability to attract and
retain the best KMP to run and manage the Group, as well as create goal congruence between KMP and
shareholders.
The Board’s policy for determining the nature and amount of remuneration for KMP of the Group is as follows:
The remuneration policy, setting the terms and conditions for the Executive Directors and other senior
executives, was developed by the Board of Directors after seeking professional advice from independent
external consultants. The Board of Directors benchmarks the Company’s salaries payable to senior
management by reference to independent industry data to ensure that the Company is consistent with prevailing
market conditions. All executives receive a base annual salary (which is based on factors such as length of
service and experience). The Board of Directors has chosen to adopt an equity-based approach to remunerating
executive staff and employees. The Company utilised the Employee Share Option Plan as adopted by
shareholders in November 2020 as the mechanism by which options may be issued to executive management
and staff to adequately incentivise these individuals.
The Board of Directors reviews executive packages annually by reference to the Group’s performance,
executive performance and comparable information from industry sectors and other listed companies in similar
industries and then considers the justification of any salary review or participation in the Employee Share Option
Plan.
The performance of executives is measured against criteria agreed annually with each executive and is based
predominantly on the past year’s growth in shareholders’ value over the financial year and by contrast with its
peers and industry sector. All incentives must be linked to predetermined performance criteria. The policy is
designed to attract the highest calibre of executives and reward them for performance that results in long-term
growth in shareholder wealth.
The Board policy is to remunerate Non-Executive Directors at market rates for time, commitment and
responsibilities. The Executive Directors determine payments to the Non-Executive Directors and review their
remuneration annually, based on market practice, duties and accountability. Independent external advice is
sought when required. No remuneration consultants were used during the year. The maximum aggregate fees
that can be paid to Non-Executive Directors is subject to approval by shareholders at the Annual General
Meeting. Fees for Non-Executive Directors are not linked to the performance of the Group.
Company Performance, Shareholder Wealth and KMP Remuneration
2020
2021
2022
2023
2024
$
$
$
$
$
Revenue
117,668
60,955
321,938
383,737
346,921
Net loss after tax
(275,522)
(934,845)
(1,924,680)
(630,396)
(2,320,225)
Share price at year end
(pre-consolidation)
0.001
0.002
0.001
0.002
N/A
Share price at year end
(converted to
consolidated)
0.05
0.10
0.05
0.10
0.042
Carnegie Clean Energy Annual Report 2024
34
CARNEGIE CLEAN ENERGY LIMITED
ABN 69 009 237 736
AND CONTROLLED ENTITIES
DIRECTORS' REPORT
30 JUNE 2024
REMUNERATION REPORT – AUDITED (Continued)
The remuneration for each KMP of the Group paid during the year was as follows:
Details of Remuneration for Year Ended 30 June 2024
* Fees include $60,000 paid to Mooney & Partners Pty Ltd, a company associated with Grant Mooney, for company
secretarial services.
^Fees include $93,531 bonus for the year awarded at the discretion of the Board for performance relative to annual
executive performance criteria.
**Share Based Payments relate to options issued to directors and are non-cash. The value is determined by way
of calculation using a Black & Scholes formula determined at the time of issue of the options following approval by
shareholders at the Annual General Meeting.
Details of Remuneration for Year Ended 30 June 2023
* Fees include $60,000 paid to Mooney & Partners Pty Ltd, a company associated with Grant Mooney, for company
secretarial services.
^Fees include $26,250 bonus for the year.
**Share Based Payments relate to options issued to directors and are non-cash. The value is determined by way
of calculation using a Black & Scholes formula determined at the time of issue of the options following approval by
shareholders at the Annual General Meeting.
Employment Contracts of KMP
The employment conditions of KMP are formalised in Service Contracts.
The Company entered into an executive services agreement with Mr Jonathan Fievez on 27 September 2018 in
respect of his employment as the CEO of the Company. The principal terms of the executive services agreement
are as follows:
(i) Mr Fievez receives a base salary of $294,919 (revised 6/11/2023) per annum, excluding mandatory
superannuation contributions;
(ii) a cash bonus of up to 30% of the annual gross salary may be payable annually at the discretion of the
Directors.
(iii) express provisions protecting the Company’s confidential information and intellectual property;
(iv) Mr Fievez may terminate the agreement by giving 3 months’ notice in writing to the Company; and
(v) The Company may terminate the agreement (without cause) by giving Mr Fievez 3 months’ notice in
writing (or make payment in lieu of notice), unless the Company is terminating as a result of serious
misconduct (or other similar grounds) by Mr Fievez, in which case no notice is required.
Cash salary,
leave paid
and fees
Non Cash
Benefits
% of
Remuneration
Performance
Based
Terry Stinson
70,000
$
-
$
7,700
$
-
$
29,919
$
107,619
$
27.80%
Anthony Shields
50,000
$
-
$
5,500
$
-
$
-
$
55,500
$
-
Michael Fitzpatrick
50,000
$
-
$
5,500
$
-
$
-
$
55,500
$
-
Grant Mooney*
110,000
$
-
$
5,500
$
-
$
-
$
115,500
$
-
Jonathan Fievez^
383,049
$
-
$
42,135
$
-
$
79,819
$
505,003
$
15.81%
Total
663,049
$
-
$
66,335
$
-
$
109,738
$
839,122
$
13.08%
Total
Short-term benefits
Post
Employment
Benefits - Super
Other long
term benefits
Share based
payments**
Actual rewards received in the period
Cash salary,
leave paid
and fees
Non Cash
Benefits
% of
Remuneration
Performance
Based
Terry Stinson
70,000
$
-
$
7,350
$
-
$
60,000
$
137,350
$
43.68%
Anthony Shields
50,000
$
-
$
5,250
$
-
$
-
$
55,250
$
-
Michael Fitzpatrick
50,000
$
-
$
5,250
$
-
$
-
$
55,250
$
-
Grant Mooney*
110,000
$
-
$
5,250
$
-
$
-
$
115,250
$
-
Jonathan Fievez^
306,418
$
-
$
32,174
$
-
$
90,000
$
428,592
$
21.00%
Total
586,418
$
-
$
55,274
$
-
$
150,000
$
791,692
$
18.95%
Total
Other long term
benefits
Share based
payments**
Actual rewards received in the period
Short-term benefits
Post
Employment
Benefits -
Super
Carnegie Clean Energy Annual Report 2024
35
CARNEGIE CLEAN ENERGY LIMITED
ABN 69 009 237 736
AND CONTROLLED ENTITIES
DIRECTORS' REPORT
30 JUNE 2024
REMUNERATION REPORT – AUDITED (Continued)
Employment Contracts of KMP(continued)
Messrs Fitzpatrick, Mooney and Shields each receive an annual remuneration as Non-Executive Directors of
$50,000 (exclusive of mandatory superannuation contributions and GST) while Mr Stinson (Chairman) receives
$70,000 per annum (exclusive of mandatory superannuation contributions and GST). These salaries took effect
from 1 January 2022.
Their appointment shall cease if:
(a)
the Non-Executive Director resigns;
(b)
at the close of any general meeting of Shareholders at which a resolution of their re-election is not approved;
(c)
the Non-Executive Director is removed as a Director in accordance with the Corporations Act or the
Constitution.
The Company has entered into an agreement for the provision of Company secretarial services by Mooney &
Partners Pty Ltd, a company associated with director Mr Grant Mooney. The agreement provides for the provision
of Company Secretarial Services to the Company for $60,000 per annum plus GST. Mooney and the Company
can terminate the agreement by giving 3 months’ notice to either party.
Termination payments are generally not payable on resignation or dismissal for serious misconduct. In the
instance of serious misconduct the Company can terminate employment at any time. Termination payments are
in accordance with the Corporations Act 2001.
Other transactions with KMP and/or their related parties.
The Company has entered into an agreement for the provision of operation and maintenance services by Secure
Energy Pty Ltd (Secure Energy) (Previously EMC Asset Management Pty Ltd (EMCAM)), a jointly owned solar
energy microgrid operation and maintenance company. EMCAM provides services to maintain the Garden Island
Solar Battery System. Secure Energy is a company jointly owned by director Mr Grant Mooney and CEO Jonathan
Fievez. Secure Energy also sub leases office space from Carnegie at Rous Head Facility in Fremantle. Full
details of amounts paid to Secure Energy are outlined in Note 23.
Options Holdings
Movement in equity settled options held by KMP is detailed below:
Balance
30 June 2023
Consolidation
adjustment
Rights &
Options
exercised
Net Change
Other
Balance
30 June 2024
Michael Fitzpatrick
860,000,000
17,200,000
-
(17,200,000)
-
Grant Mooney
100,000,000
2,000,000
-
-
2,000,000
Anthony Shields
1,070,000,000
21,400,000
-
(14,400,000)
7,000,000
Terry Stinson
285,000,000
5,700,000
-
(1,700,000)
4,000,000
Jonathan Fievez
300,000,000
6,000,000
-
-
6,000,000
Total
2,615,000,000
52,300,000
-
(33,300,000)
19,000,000
Carnegie Clean Energy Annual Report 2024
36
CARNEGIE CLEAN ENERGY LIMITED
ABN 69 009 237 736
AND CONTROLLED ENTITIES
DIRECTORS' REPORT
30 JUNE 2024
REMUNERATION REPORT – AUDITED (Continued)
Details of equity settled options granted as compensation for KMP outstanding at balance date are as follows:
Terms & Conditions for Each Instrument
KMP
Consolidated
Vested &
Granted
Number
Grant Date
Value per
Instrument at
Grant Date
Consolidated
Exercise
Price
First
Exercise
Date
Last
Exercise
Date
Jonathan Fievez
3,000,000
13 Oct 21
0.035 cent
0.18 cent
13 Oct 2021
13 Oct 2024
Anthony Shields
2,000,000
23 Nov 21
0.065 cent
0.18 cent
23 Nov 2021 22 Nov 2024
Grant Mooney
2,000,000
23 Nov 21
0.065 cent
0.18 cent
23 Nov 2021 22 Nov 2024
Terry Stinson
2,000,000
23 Nov 21
0.065 cent
0.18 cent
23 Nov 2021 22 Nov 2024
Jonathan Fievez
3,000,000
28 Sep 22
0.030 cent
0.15 cent
28 Sep 2022 28 Sep 2024
Terry Stinson
2,000,000
22 Nov 22
0.030 cent
0.15 cent
22 Nov 2022 25 Nov 2024
5 million of Mr Shields’ options at 30 June 2024 relate to his previous capacity as a convertible noteholder. These
were not issued as KMP compensation.
Shareholdings
Number of Shares held by KMP
Balance
30 June 2023
Consolidation
adjustment
Rights &
Options
Exercised
Net Change
Other
Balance
30 June 2024
Terry Stinson
19,700,000
394,000
-
250,000
644,000
Michael Fitzpatrick
1,021,535,417
20,430,709
-
-
20,430,709
Grant Mooney
350,000,000
7,000,000
-
-
7,000,000
Anthony Shields
776,985,492
15,539,710
-
-
15,539,710
Jonathan Fievez
30,000,000
600,000
-
200,000
800,000
Total
2,198,220,909
43,964,419
-
450,000
44,414,419
END OF REMUNERATION REPORT
DIRECTORS' MEETINGS
There were 5 Directors' meetings held during the financial year ended 30 June 2024. Attendances were as follows:
Director
No. Meetings
attended
No. Meetings held
during time in
office
Terry Stinson
4
4
Grant Mooney
4
4
Michael Fitzpatrick
4
4
Anthony Shields
4
4
There were also five (5) circular resolutions passed by the Board of Directors during the financial year.
Carnegie Clean Energy Annual Report 2024
37
CARNEGIE CLEAN ENERGY LIMITED
ABN 69 009 237 736
AND CONTROLLED ENTITIES
DIRECTORS' REPORT
30 JUNE 2024
NON-AUDIT SERVICES
The auditors were not engaged for any non-audit services during the financial year ended 30 June 2024.
AUDITOR’S INDEPENDENCE DECLARATION
The auditor’s independence declaration for the year ended 30 June 2024 has been received and can be found on
page 14.
Signed on 27 August 2024 in accordance with a resolution of the Board of Directors.
GRANT MOONEY
TERRY STINSON
Director
Director
38
Carnegie Clean Energy Annual Report 2024
38
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the consolidated financial report of Carnegie Clean Energy Limited
for the year ended 30 June 2024, I declare that to the best of my knowledge and belief, there have
been no contraventions of:
a)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit;
and
b)
any applicable code of professional conduct in relation to the audit.
Perth, Western Australia
27 August 2024
M R Ohm
Partner
Carnegie Clean Energy Annual Report 2024
39
CARNEGIE CLEAN ENERGY LIMITED
ABN 69 009 237 736
AND CONTROLLED ENTITIES
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
Note
Group
Continuing Operations
2024
$
2023
$
Revenue
2
346,921
383,737
Other income
Other income
2
100,440
1,834,592
Total revenue and other income
447,361
2,218,329
Cost of Sales
Cost of Sales
(152,308)
-
Expenses
Professional fees
(223,525)
(209,313)
Depreciation expense
3
(318,891)
(442,929)
Employee and Directors’ expenses
(1,170,379)
(1,042,620)
Employee share-based payments
25
(111,595)
(263,989)
Finance costs
(12,909)
(10,907)
Occupancy and administration
(674,874)
(547,224)
Research expenses
(101,454)
(346,207)
Other expenses from ordinary activities
(1,651)
14,464
Total expenses and cost of sales
(2,615,278)
(2,848,725)
Loss before income tax from continuing operations
(2,320,225)
(630,396)
Income tax benefit/(expense)
-
-
Loss after tax from continuing operations
(2,320,225)
(630,396)
Other comprehensive income/(loss)
Items that may be reclassified to profit or loss
Exchange gains/(losses) on translating overseas controlled
entities and foreign currencies
(5,475)
47,087
Total comprehensive loss for the year
(2,325,700)
(583,309)
Earnings per share from continuing operations
Basic loss per share (cents per share)
7
(0.740)
(0.204)
Diluted loss per share (cents per share)
7
(0.740)
(0.204)
The accompanying notes form part of these financial statements.
Carnegie Clean Energy Annual Report 2024
40
CARNEGIE CLEAN ENERGY LIMITED
ABN 69 009 237 736
AND CONTROLLED ENTITIES
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2024
Note
Group
2024
$
2023
$
CURRENT ASSETS
Cash and cash equivalents
8
3,728,673
2,003,868
Trade and other receivables
9
212,335
3,188,988
TOTAL CURRENT ASSETS
3,941,008
5,192,856
NON-CURRENT ASSETS
Trade and other receivables
9
887,370
554,951
Other financial assets
12,414
12,414
Property, plant, and equipment
11
2,054,156
2,281,009
Leased assets – right of use
12
37,247
107,838
Intangible assets
13
15,465,386
14,339,213
TOTAL NON-CURRENT ASSETS
18,456,573
17,295,425
TOTAL ASSETS
22,397,581
22,488,281
CURRENT LIABILITIES
Trade and other payables
14
1,041,359
913,282
Employee entitlements
15
184,589
212,931
Lease liability
16
34,216
73,223
TOTAL CURRENT LIABILITIES
1,260,164
1,199,436
NON-CURRENT LIABILITIES
Long-term provisions
15
39,183
26,794
Lease liability
16
-
37,694
TOTAL NON-CURRENT LIABILITIES
39,183
64,488
TOTAL LIABILITIES
1,299,347
1,263,924
NET ASSETS
21,098,234
21,224,357
EQUITY
Share capital
17
211,159,219
209,071,177
Reserves
18
979,478
899,518
Accumulated losses
(191,040,463)
(188,746,338)
TOTAL EQUITY
21,098,234
21,224,357
The accompanying notes form part of these financial statements.
Carnegie Clean Energy Annual Report 2024
41
CARNEGIE CLEAN ENERGY LIMITED
ABN 69 009 237 736
AND CONTROLLED ENTITIES
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2024
Group
Issued
Capital
Accumulated
Losses
Foreign
Currency
Reserve
Convertible
Note/Option
Reserve
Total
$ $ $ $ $
Balance at 1 July 2022
208,261,175
(189,092,490)
28,090
1,536,900
20,733,675
Comprehensive loss
Loss for the year
-
(630,396)
-
-
(630,396)
Other comprehensive loss
-
-
47,087
-
47,087
Total comprehensive loss for the
year
-
(630,396)
47,087
-
(583,309)
Transactions with owners
Expired options transferred
-
976,548
-
(976,548)
-
Shares issued from exercise of
options
810,002
-
-
-
810,002
Share-based payment expense
-
-
-
263,989
263,989
Total transactions with owners
810,002
976,548
-
(712,559)
1,073,991
Balance at 30 June 2023
209,071,177
(188,746,338)
75,177
824,341
21,224,357
Balance at 1 July 2023
209,071,177
(188,746,338)
75,177
824,341
21,224,357
Comprehensive loss
Loss for the year
-
(2,320,225)
-
-
(2,320,225)
Other comprehensive income
-
-
(5,475)
-
(5,475)
Total comprehensive loss for the
year
-
(2,320,225)
(5,475)
-
(2,325,700)
Transactions with owners
Expired options transferred
-
26,100
-
(26,100)
-
Shares issued
2,134,000
-
-
-
2,134,000
Share issue costs
(45,958)
-
-
-
(45,958)
Share-based payment expense
-
-
-
111,595
111,595
Total transactions with owners
2,088,042
26,100
-
85,495
2,199,637
Balance at 30 June 2024
211,159,219
(191,040,463)
69,702
909,836
21,098,294
The accompanying notes form part of these financial statements.
Carnegie Clean Energy Annual Report 2024
42
CARNEGIE CLEAN ENERGY LIMITED
ABN 69 009 237 736
AND CONTROLLED ENTITIES
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2024
Note
Group
2024
$
2023
$
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
412,519
422,113
Interest received
67,099
47,126
Payments to suppliers and employees
(2,312,820)
(2,186,596)
Net cash provided (used in) operating activities
21
(1,833,202)
(1,717,357)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for development of asset
(2,722,333)
(497,102)
Receipts for development of asset
3,086,370
-
Proceeds from warranty claim
1,534,648
-
Purchase of property, plant and equipment
(20,668)
(622,410)
Net cash provided by/ (used in) investing activities
1,878,017
(1,119,512)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares
2,134,000
810,002
Share issue costs
(1,107)
-
Payments for lease liabilities
16
(89,610)
(64,300)
Return of cash from financial assets
(15,437)
-
Proceeds from return of bank guarantees
14,988
-
Payments for bank guarantees
(362,844)
-
Net cash provided by financing activities
1,679,990
745,702
Net increase/(decrease) in cash held
1,724,805
(2,091,167)
Cash and cash equivalents at beginning of financial year
2,003,868
4,095,035
Cash and cash equivalents at end of financial year
3,728,673
2,003,868
The accompanying notes form part of these financial statements.
Carnegie Clean Energy Annual Report 2024
43
CARNEGIE CLEAN ENERGY LIMITED
ABN 69 009 237 736
AND CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024
NOTE 1. STATEMENT OF MATERIAL ACCOUNTING POLICIES
Carnegie Clean Energy Limited (“the Company”) is a company domiciled in Australia. The consolidated financial
statements of the Company for the year ended 30 June 2024 comprise the Company and the entities controlled
by the Company (“the Group”). Control is achieved when the Company:
has power over the investee;
is exposed, or has rights, to variable returns from its involvement in with the investee; and
has the ability to its power to affect its returns.
The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are
changes to one or more of the three elements listed above.
The separate financial statements of the Company have not been presented within this financial report as
permitted by the Corporations Act 2001. The Group is a ‘for profit’ entity for financial reporting purposes under
Australian Accounting Standards.
The consolidated financial statements were authorised for issue by the Board of Directors on 27 August 2024.
Basis of Preparation
The financial report is a general-purpose financial report that has been prepared in accordance with Australian
Accounting Standards (AASB), adopted by the Australian Accounting Standards Board and the Corporations Act
2001.
Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a
financial report containing relevant and reliable information about transactions, events and conditions to which
they apply. Compliance with Australian Accounting Standards ensures that the financial statements and notes
also comply with International Financial Reporting Standards. Material accounting policies adopted in the
preparation of this financial report are presented below. They have been consistently applied unless otherwise
stated.
The financial report has been prepared on an accruals basis and is based on historical costs, modified, where
applicable, by the measurement at fair value of selected non-current assets, financial assets and financial
liabilities.
New and amended accounting standards and interpretations
The Group adopted ASSB 2021-2 which amends AASB 7, AASB 101, AASB 108 and AASB 134 to require
disclosure of “material accounting policy information” rather than significant accounting policies in an entity’s
financial statements. It also updates AASB Practice Statement 2 to provide guidance on the application of the
concept of materiality to accounting policy disclosure.
The adoption of the amendment did not have a material impact on the financial statements. The Directors have
reviewed all other Standards and Interpretations on issue not yet adopted for the period ended 30 June 2024. As
a result of this review, the Directors have determined that there is no material impact of the Standards
Interpretations on issue not yet adopted by the Company, and therefore no other change necessary to the Group
accounting policies and no other changes from the new accounting standards have been adopted.
Accounting Policies
Research and development
Research costs are expensed in the period in which they are incurred. Development costs are capitalised when
it is probable that the project will be a success considering its commercial and technical feasibility; the Group is
able to use or sell the asset; the Group has sufficient resources and intent to complete the development; and its
costs can be measured reliably. The capitalised development costs are an intangible asset not yet ready for use
and are therefore not currently subject to amortisation.
Carnegie Clean Energy Annual Report 2024
44
CARNEGIE CLEAN ENERGY LIMITED
ABN 69 009 237 736
AND CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024
NOTE 1. STATEMENT OF MATERIAL ACCOUNTING POLICIES (CONTINUED)
Impairment of intangible assets
Intangible assets that have an indefinite useful life, or are not yet ready for use, are not subject to amortisation
and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that
they might be impaired. Other non-financial assets are reviewed for impairment whenever events or changes in
circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for
the amount by which the asset’s carrying value exceeds its recoverable amount.
Recoverable amount is the higher of an asset’s fair value less costs of disposal and value-in-use. The value-in-
use is the present value of the estimated future cashflows relating to the asset using a pre-tax discount rate
specific to the asset or cash-generating unit to which the asset belongs. Assets that do not have independent
cashflow flows are grouped together to form a cash-generating unit.
Property, Plant and Equipment
Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost
includes expenditure that is directly attributable to the acquisitions of the items.
Depreciation is calculated on a straight-line basis to write off the net costs of each item of plant & equipment.
The depreciation rates used for each class of depreciable asset are:
Class of Fixed Asset
Depreciation Rate
Plant and equipment
10.0% - 33.33%
Microgrid/Battery asset
15 years
Residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each
reporting date.
Leasehold improvements are depreciated over the unexpired period of the lease or the estimated useful life of
the assets, whichever is shorter.
Any item of property, plant and equipment is derecognised upon disposal or where there is no future economic
benefit to the Group. Gains and losses between the carrying amount and the disposal proceeds are taken to
profit or loss. Any revaluation surplus reserve relating to the items disposed of is transferred directly to
accumulated losses.
Financial Instruments
Recognition and derecognition
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual
provisions of the financial instrument.
Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire,
or when the financial asset and substantially all the risks and rewards are transferred.
A financial liability is derecognised when it is extinguished, discharged, cancelled or expires.
Classification and initial measurement of financial assets
Except for those trade receivables that do not contain a significant financing component and are measured at
transaction price in accordance with AASB 15, all financial assets are initially measured at fair value adjusted for
transaction costs (where applicable).
Carnegie Clean Energy Annual Report 2024
45
CARNEGIE CLEAN ENERGY LIMITED
ABN 69 009 237 736
AND CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024
NOTE 1. STATEMENT OF MATERIAL ACCOUNTING POLICIES (CONTINUED)
Financial Instruments (continued)
Recognition and derecognition (continued)
For the purpose of subsequent measurement, financial assets, other than those designated and effective as
hedging instruments, are classified into the following categories:
amortised cost
fair value through profit or loss (FVTPL)
equity instruments at fair value through other comprehensive income (FVOCI)
debt instruments at fair value through other comprehensive income (FVOCI).
All income and expenses relating to financial assets that are recognised in profit or loss are presented within
finance costs, finance income or other financial items, except for impairment of trade receivables which is
presented within other expenses.
The classification is determined by both:
the entity’s business model for managing the financial asset
the contractual cash flow characteristics of the financial asset.
All income and expenses relating to financial assets that are recognised in profit or loss are presented within
finance costs, finance income or other financial items, except for impairment of trade receivables which is
presented within other expenses.
Foreign Currency
Functional and presentation currency
The functional currency of each of the Group’s entities is measured using the currency of the primary economic
environment in which that entity operates. The consolidated financial statements are presented in Australian
dollars which is the parent entity’s functional and presentation currency.
Transaction and balances
Exchange differences arising on the translation of monetary items are recognised in the income statement, except
where deferred to equity as qualifying cash flow or net investment hedge.
Share-based payments
Equity-settled and cash-settled share-based compensation are provided to employees.
Equity-settled transactions are awards of shares, or options over shares, that are provided to employees in
exchange for the rendering of services. Cash-settled transactions are awards of cash for the exchange of services,
where the amount of cash is determined by reference to the share price.
The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently
determined using either a Binomial or Black-Scholes option pricing model that takes into account the exercise
price, the term of the option, the impact of dilution, the share price at grant date and expected price volatility of
the underlying share, the expected dividend yield and the risk free interest rate for the term of the option, together
with non-vesting conditions that do not determine whether the consolidated entity receives the services that entitle
the employees to receive payment. No account is taken of any other vesting conditions.
The cost of equity-settled transactions are recognised as an expense with a corresponding increase in equity over
the vesting period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the
award, the best estimate of the number of awards that are likely to vest and the expired portion of the vesting
period. The amount recognised in profit or loss for the period is the cumulative amount calculated at each reporting
date less amounts already recognised in previous periods.
Carnegie Clean Energy Annual Report 2024
46
CARNEGIE CLEAN ENERGY LIMITED
ABN 69 009 237 736
AND CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024
NOTE 1.
STATEMENT OF MATERIAL ACCOUNTING POLICIES (CONTINUED)
Share-based payments (continued)
The cost of cash-settled transactions is initially, and at each reporting date until vested, determined by applying
either the Binomial or Black-Scholes option pricing model, taking into consideration the terms and conditions on
which the award was granted. The cumulative charge to profit or loss until settlement of the liability is calculated
as follows:
during the vesting period, the liability at each reporting date is the fair value of the award at that date
multiplied by the expired portion of the vesting period.
From the end of the vesting period until settlement of the award, the liability is the full fair value of the
liability at the reporting date.
All changes in the liability are recognised in profit or loss. The ultimate cost of cash-settled transactions is the
cash paid to settle the liability.
Market conditions are taken into consideration in determining fair value. Therefore any awards subject to market
conditions are considered to vest irrespective of whether or not that market condition has been met, provided all
other conditions are satisfied.
If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not been
made. An additional expense is recognised, over the remaining vesting period, for any modification that increases
the total fair value of the share-based compensation benefit as at the date of modification.
If the non-vesting condition is within the control of the consolidated entity or employee, the failure to satisfy the
condition is treated as a cancellation. If the condition is not within the control of the consolidated entity or employee
and is not satisfied during the vesting period, any remaining expense for the award is recognised over the
remaining vesting period, unless the award is forfeited.
If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any remaining
expense is recognised immediately. If a new replacement award is substituted for the cancelled award, the
cancelled and new award is treated as if they were a modification.
Revenue and Other Income
Revenue is recognised at an amount that reflects the consideration to which the Group is expected to be entitled
in exchange for transferring goods or services to a customer. For each contract with a customer, the Group:
identifies the contact with a customer; identifies the performance obligations in the contract, determines the
transaction price which takes into account estimates of variable consideration and the time value of money;
allocates the transaction price to the separate performance obligations on the basis of the relative stand-alone
selling price of each distinct good or service to be delivered; and recognises revenue when or as each
performance obligation is satisfied in a manner that depicts the transfer to the customer of the goods of service
promised.
Sale of Goods
Revenue from the sale of goods is recognised at the point in time when the customer obtains control of the goods,
which is generally at the time of delivery.
Rendering of services
Revenue from a contract to provide services is recognised over time as the services are rendered based on either
a fixed price or hourly rate.
Interest
Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the
financial asset.
Carnegie Clean Energy Annual Report 2024
47
CARNEGIE CLEAN ENERGY LIMITED
ABN 69 009 237 736
AND CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024
NOTE 1. STATEMENT OF MATERIAL ACCOUNTING POLICIES (CONTINUED)
Revenue and Other Income (continued)
Government Grants and Research and Development Tax Incentives
Government grants and research and development tax incentives are recognised at fair value where there is
reasonable assurance that the grant or tax incentive will be received, and all grant or tax incentive conditions will
be met. Where grantor tax incentive conditions are not yet fully met, grants or tax incentives will be treated as
unearned funding in the statement of financial position. Grants or tax incentives relating to expense items are
recognised as an offset against these expenses to match the costs they are compensating. Grants or tax
incentives relating to items capitalised as assets are recognised as an offset against the asset to match the costs
they are compensating.
Earnings/(loss) per share
Basic earnings/(loss) per share is calculated as net profit/(loss) attributable to members of the Group, adjusted to
exclude any costs of servicing equity (other than dividends), divided by the weighted average number of ordinary
shares on issue throughout the reporting period.
Diluted earnings/(loss) per share is calculated as net profit/(loss) attributable to members of the Group, adjusted
for, the dilutive effects of any outstanding unlisted options over ordinary shares in the parent.
Fair Value Measurement
When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure
purposes, the fair value is based on the price that would be received to sell an asset or paid to transfer a liability
in an orderly transaction between market participants at the measurement date; and assumes that the transaction
will take place either: in the principal market; or in the absence of a principal market, in the most advantageous
market.
Fair value is measured using the assumptions that market participants would use when pricing the asset or liability,
assuming they act in their economic best interests. For non-financial assets, the fair value measurement is based
on its highest and best use. Valuation techniques that are appropriate in the circumstances and for which sufficient
data are available to measure fair value, are used, maximising the use of relevant observable inputs, and
minimising the use of unobservable inputs.
Assets and liabilities measured at fair value are classified, into three levels, using a fair value hierarchy that reflects
the significance of the inputs used in making the measurements. Classifications are reviewed at each reporting
date and transfers between levels are determined based on a reassessment of the lowest level of input that is
significant to the fair value measurement.
Contributed Equity
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or
options are shown in equity as a deduction, net of tax, from proceeds.
Financial Assets
The Group has no significant financial assets held at fair value, not did it have any in the prior period.
Financial Liabilities
The Group has no significant financial liabilities held at fair value through the profit or loss, nor did it have any in
the prior period.
Carnegie Clean Energy Annual Report 2024
48
CARNEGIE CLEAN ENERGY LIMITED
ABN 69 009 237 736
AND CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024
NOTE 1. STATEMENT OF MATERIAL ACCOUNTING POLICIES (CONTINUED)
Significant accounting judgements, estimates and assumptions
In the process of applying the Group’s accounting policies, management has made the following judgements,
apart from those involving estimations, which have the most significant effect on the amounts recognised in the
financial statements:
Impairment of assets
The Group assesses impairment of all assets at each reporting date by evaluating conditions specific to the Group
and to the particular asset that may lead to impairment. If an impairment trigger exists, the recoverable amount of
the asset is determined. Annual impairment testing is also carried out for all intangible assets (refer to Note 13).
The CETO development asset is an intangible asset which is not yet available for use which the Group tests
annually for impairment. Refer to Note 13 for details of the significant assumptions and judgements utilised in this
assessment, and note 11 for property, plant and equipment.
Share based payment transactions
The Group measures the cost of equity settled transactions with employees by reference to the fair value of the
equity instrument at the date at which they are granted. The fair value is determined by using the Black Scholes
valuation method taking into consideration the terms and conditions upon which the instruments are granted (refer
to Note 25).
NOTE 2. REVENUE AND OTHER INCOME
The Group derives its sales revenue from the sale of goods and provision of services under AASB 15.
Group
2024
$
2023
$
Sales revenue
Garden Island Microgrid/Electricity sales (point in time)
229,305
383,737
Sale of Large-Scale Generation Certificate (point in time)
117,616
-
346,921
383,737
Other income
Interest income
61,057
50,449
Insurance claim income
-
235,079
Rental income
14,952
14,416
Amount received under Deed of Settlement and release
-
1,534,648
Other income
24,431
-
100,440
1,834,592
Carnegie Clean Energy Annual Report 2024
49
CARNEGIE CLEAN ENERGY LIMITED
ABN 69 009 237 736
AND CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024
NOTE 3.
DEPRECIATION EXPENSE
Group
Notes
2024
$
2023
$
NOTE 4.
INCOME TAX EXPENSE
Group
a.
The components of tax expense comprise:
2024
$
2023
$
Current tax expense
Current period
-
-
-
-
b.
The prima facie tax benefit on loss from ordinary activities before income tax is reconciled to the income
tax as follows:
Group
2024
$
2023
$
Total (Loss) for the year
(2,320,225)
(630,396)
Income tax at 25% (2023: 25%)
(580,056)
(157,599)
Add/(Deduct): Tax effect of:
—
Other non-allowable items
41,889
33,094
—
Non-deductible R&D costs
37,260
86,552
—
Share options expenses during the year
27,899
65,998
—
Movement in deferred tax balances not recognised
(29,297)
(20,998)
—
Current year tax losses
450,888
-
—
Prior year tax losses utilised
-
(24,905)
—
Effect of lower foreign tax rates
51,417
17,858
-
-
Depreciation – property, plant, and equipment
11
22,347
14,412
Depreciation and impairment - property, plant, and equipment
11
225,953
355,358
Depreciation – right of use asset
12
70,591
73,159
318,891
442,929
The Group has tax revenue losses carried forward of $52,351,793 (2023: $50,654,437) and capital tax losses
carried forward of $1,239,028 (2023: $1,239,028). The tax losses do not expire under current tax legislation.
A deferred tax asset has not been recognised in respect of tax losses carried forward as a formal assessment
of the recoverability of the tax losses under the current tax legislation has not been performed.
Carnegie Clean Energy Annual Report 2024
50
CARNEGIE CLEAN ENERGY LIMITED
ABN 69 009 237 736
AND CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024
NOTE 5.
INTERESTS OF KEY MANAGEMENT PERSONNEL (KMP)
Refer to the Remuneration Report contained in the Directors’ Report for details of the remuneration paid or
payable to each member of the Group’s KMP for the year ended 30 June 2024. Refer to note 23 for details of
other transactions with KMP and associated balances payable and receivable.
Names and positions held by KMP in office at any time during the financial year are:
Key Management Person
Position
Terry Stinson
Non-Executive Chairman
Michael Fitzpatrick
Non-Executive Director
Grant Mooney
Non-Executive Director and Company Secretary
Anthony Shields
Non-Executive Director
Jonathan Fievez
Chief Executive Officer
The totals of remuneration paid to KMP of the Group during the year are as follows:
Group
2024
$
2023
$
Short term employee benefits
663,049
586,418
Share based payments
109,738
150,000
Post-employment benefits
66,335
55,274
839,122
791,692
NOTE 6.
AUDITOR’S REMUNERATION
Group
2024
$
2023
$
Remuneration of the current auditor of the Group for auditing
or reviewing the Group’s financial reports
68,240
66,819
68,240
66,819
NOTE 7.
EARNINGS/(LOSS) PER SHARE
Group
2024
$
2023
$
Basic loss per share (cents per share)
(0.740)
(0.204)
Diluted loss per share (cents per share)
(0.740)
(0.204)
Group
2024
$
2023
$
(a) Loss used in the calculation of basic and diluted EPS
(2,320,225)
(630,396)
(b)
Weighted average number of ordinary shares used in
the calculation of basic and diluted earnings per share
313,582,297
309,469,556
As at 30 June 2023 and 30 June 2024, the outstanding options were not dilutive as the Group made net losses
in both years.
Carnegie Clean Energy Annual Report 2024
51
CARNEGIE CLEAN ENERGY LIMITED
ABN 69 009 237 736
AND CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024
NOTE 8.
CASH AND CASH EQUIVALENTS
Group
2024
$
2023
$
Cash on hand
167
167
Cash at bank
3,228,506
803,701
Term deposits
500,000
1,200,000
3,728,673
2,003,868
NOTE 9.
TRADE AND OTHER RECEIVABLES
Group
Gross Amount
Past due but not impaired
(days overdue)
Within trade
terms
2024
$
1-30
$
31-60
$
61+
$
$
CURRENT
Trade receivables
37,513
-
-
-
37,513
Net trade receivables
37,513
-
-
-
37,513
Prepayments
85,217
-
-
-
85,217
Other receivables*
89,605
-
-
-
89,605
212,335
-
-
-
212,335
NON-CURRENT
Security deposits
887,370
-
-
-
887,370
887,370
-
-
-
887,370
* Other receivables are mainly represented by compensation payments, GST receivable and accrued income.
Group
Gross Amount
Past due but not impaired
(days overdue)
Within trade terms
2023
$
1-30
$
31-60
$
61+
$
$
CURRENT
Trade receivables
868,230
-
-
-
868,230
Net trade receivables
868,230
-
-
-
868,230
Prepayments
63,816
-
-
-
63,816
Other receivables*
2,256,942
-
-
-
2,256,942
3,188,988
-
-
-
3,188,988
NON-CURRENT
Security deposits
554,951
-
-
-
554,951
554,951
-
-
-
554,951
* Other receivables are mainly represented by compensation payments, GST receivable and accrued income.
Carnegie Clean Energy Annual Report 2024
52
CARNEGIE CLEAN ENERGY LIMITED
ABN 69 009 237 736
AND CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024
NOTE 10.
OTHER FINANCIAL ASSETS
Group
2024
$
2023
$
Non-current financial assets
12,414
12,414
Non-current financial assets comprise:
Unlisted investment
12,414
12,414
Financial assets is comprised of an investment in the ordinary issued capital of unlisted entities.
NOTE 11.
PROPERTY, PLANT AND EQUIPMENT
Group
Plant and equipment:
2024
$
2023
$
At cost
3,612,083
3,612,083
Accumulated depreciation
(1,557,927)
(1,331,074)
Total plant and equipment
2,054,156
2,281,009
An impairment indicator is present because the Group's net assets are greater than its market
capitalisation. An impairment test has been performed for the Microgrid/Battery asset cash-generating
unit and it was concluded that the assets of the cash-generating unit are not impaired.
Movements in Carrying Amounts
Movement in the carrying amounts for each class of property, plant and equipment between the beginning
and the end of the current financial year.
Group
Microgrid/
Battery asset
2024
$
Plant and
Equipment
2024
$
Microgrid/
Battery asset
2023
$
Plant and
Equipment
2023
$
Balance at the beginning of year
2,223,002
58,007
2,070,492
14,461
Additions
-
21,446
507,869
57,958
Sales
-
-
-
-
Write offs
-
-
(129,406)
-
Depreciation expense
(225,952)
(22,347)
(225,953)
(14,412)
Carrying amount at the end of year
1,997,050
57,106
2,223,002
58,007
NOTE 12.
RIGHT-OF-USE ASSETS
Group
2024
$
2023
$
Cost
215,676
208,676
Accumulated amortisation
(178,429)
(100,838)
Closing balance at end of the period
37,247
107,838
Carnegie Clean Energy Annual Report 2024
53
CARNEGIE CLEAN ENERGY LIMITED
ABN 69 009 237 736
AND CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024
NOTE 12.
RIGHT-OF-USE ASSETS (CONTINUED)
Group
Reconciliation - Premises
2024
$
2023
$
Balance at the beginning of period
107,838
173,395
Additions
7,788
7,602
Amortisation expense
(78,379)
(73,159)
Closing Balance at end of the period
37,247
107,838
NOTE 13.
INTANGIBLE ASSETS
Group
Intangibles – CETO technology development asset
2024
$
2023
$
Movements for year ended 30 June
Opening Balance
14,339,213
14,475,353
Subsequent development expenditure – CETO Technology
2,722,333
2,075,703
Other grants received
(975,457)
(1,578,602)
R&D tax incentive
(620,703)
(633,241)
Balance as at 30 June
15,465,386
14,339,213
The CETO technology has yet to be commercialised and is in the development phase. As it is not yet ready for
use, it is necessary to test the asset annually for impairment. The recoverable amount is determined as the fair
value and the ‘relief from royalty’ methodology (RRM) is used to determine this amount. Management has
considered the RRM as being the most appropriate methodology to value CETO technology as:
RRM is a commonly used and widely accepted method for valuing intellectual property (IP), and
A cost-based approach can be used as a crosscheck using the costs required to replicate the IP. Whilst
Management have details on the historical expenditure incurred in developing and maintaining the IP, it is
not possible to identify what proportion of the historical expenditure is now obsolete.
A market-based approach is also rarely applied in the valuation of IP due to lack of comparable transactions of IP
from which valuation metrics can be observed and deducted. The basic principle of the relief from royalty
methodology (RRM) is that if the intellectual property (IP) is not owned, there would need to be payment to license
it from the IP owner. By virtue of owning the asset, the IP owner is ‘relieved’ from the responsibility of licensing
the IP from a third party. The value of that is therefore benchmarked to the hypothetical cost to license such IP
from a third party.
The determination of fair value is based on ‘fair value’ as defined under AASB 13: Fair Value Measurement. In
the current year management has prepared a valuation model using the RRM. The RRM utilises an estimate of
the forecast royalty stream that a hypothetical third party would pay to utilise the IP less the costs of
commercialisation.
The development asset in its entirety is classified as level 3 in the fair value hierarchy.
Key assumptions are those to which the recoverable amount of an asset or cash-generating units is most
sensitive. The calculation of the fair value less cost of disposal is based on the following key assumptions:
Expected revenue generated from the sale of CETO IP units, based on a minority share of forecast installed
wave energy capacity;
Remaining useful life of the IP will have a life beyond the remaining patent period as new technology is
developed and patented. As such, a 15-year forecast period with a terminal value has been utilised in the
financial model;
A royalty rate range of 3% to 5% with a mid-point of 4% has been applied. To determine a royalty rate range,
royalty rates associated with the renewable energy sector were considered and selected;
Management estimates of the cost to Carnegie (net of grants and research & development rebates) to
commercialise would require an R&D budget of $2 million per year until 2026;
A discount rate of 21% derived by applying the capital asset pricing model (CAPM).
During the year the Company obtained an independent assessment of the Company’s valuation methodology to
validate its basis of valuation. On this basis, the valuation model calculated a net-present-value (recoverable
amount) range that was higher than the carrying value of the development asset at 30 June 2024. Therefore, no
impairment is required.
Carnegie Clean Energy Annual Report 2024
54
CARNEGIE CLEAN ENERGY LIMITED
ABN 69 009 237 736
AND CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024
NOTE 14.
TRADE AND OTHER PAYABLES
Group
2024
$
2023
$
Trade creditors
481,127
559,049
Accruals
560,232
354,233
1,041,359
913,282
NOTE 15.
EMPLOYEE ENTITLEMENTS
Group
Current
2024
$
2023
$
Annual leave accrued
74,133
83,051
Long Service Leave and Other Employee Provisions
110,456
129,880
184,589
212,931
Non-current
Long Service Leave and Other Employee Provisions
39,183
26,794
39,183
26,794
Provision for Employee Benefits
A provision has been recognised for employee entitlements relating to long service leave (LSL) and annual
leave. In calculating the present value of future cash flows in respect of LSL, the probability of LSL being taken
is based on historical data.
NOTE 16.
LEASE LIABILITY
Group
Premises
2024
$
2023
$
Current liabilities
34,216
73,223
Non-current liabilities
-
37,694
Total lease liability
34,216
110,917
Group
Reconciliation
2024
$
2023
$
Opening balance at beginning of period
110,917
167,615
Liabilities incurred during the year (i)
12,909
3,865
Principal repayments
(89,610)
(60,563)
Closing Balance 30 June
34,216
110,917
(i)
Extension of Fremantle office lease to 31 December 2024.
Carnegie Clean Energy Annual Report 2024
55
CARNEGIE CLEAN ENERGY LIMITED
ABN 69 009 237 736
AND CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024
NOTE 17.
SHARE CAPITAL
Group
2024
2023
$
$
366,203,472 (2023: 312,851,474) fully paid ordinary shares
211,159,219
209,071,177
Ordinary shares have no par value. There is no limit to the authorised share capital of the Company.
a. Ordinary shares (number)
2024
No.
2023
No.
At the beginning of reporting period
15,642,573,710
15,102,573,710
Shares issued during the year
Exercise of options 18 October 2022
-
200,000,000
Exercise of options 26 October 2022
-
200,000,000
Exercise of options 27 October 2022
-
140,000,000
Share consolidation 16 November 2023
(15,329,720,238)
-
Share Purchase Plan 26 June 2024
53,350,000
-
At reporting date
366,203,472
15,642,573,710
b. Ordinary shares ($)
2024
$
2023
$
At the beginning of reporting period
209,071,177
208,261,177
Exercise of options 18 October 2022
-
300,000
Exercise of options 26 October 2022
-
300,000
Exercise of options 27 October 2022
-
210,000
Share Purchase Plan 26 June 2024
2,134,000
-
Share Purchase Plan costs 26 June 2024
(45,958)
-
At reporting date
211,159,219
209,071,177
c.
Capital Management
Management controls the capital of the Group in order to ensure that the Group can fund its operations and
continue as a going concern. The Group’s capital is made up of ordinary share capital. There are no
externally imposed capital requirements. Management effectively manages the Group’s capital by
assessing the Group’s financial risks and adjusting its capital structure in response to the changes in these
risks and in the market. This includes the management of share issues. Options were exercised during the
year.
Carnegie Clean Energy Annual Report 2024
56
CARNEGIE CLEAN ENERGY LIMITED
ABN 69 009 237 736
AND CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024
NOTE 18.
RESERVES
Group
2024
$
2023
$
a.
Foreign Currency Translation Reserve
The foreign currency translation reserve records exchange
differences arising on translation of foreign controlled subsidiaries
and foreign currencies.
69,642
75,176
b.
Convertible Note/Option Reserve
The reserve records items recognised as expenses on valuation
of share options and share based payments. It also records
amounts classified as “equity” under the requirements of AASB
132.
909,836
824,342
Total
979,478
899,518
NOTE 19.
BUSINESS RISK
The net loss of the Group for the financial year ended 30 June 2024 was $2,320,225 (2023: net loss $630,396).
As at 30 June 2024, the Group had net assets of $21,098,293 (2023:21,224,357).
NOTE 20.
OPERATING SEGMENTS
The Group operates in one segment based on the internal reports that are reviewed and used by the Board of
Directors (chief operating decision makers) in assessing performance and determining the allocation of resources.
Sales
2024
$
2023
$
Customers over 10% of revenue
346,921
383,737
Other customers
-
-
Total
346,921
383,737
NOTE 21.
RECONCILIATION OF CASH FLOW FROM OPERATIONS WITH PROFIT/(LOSS) AFTER
INCOME TAX
Group
2024
$
2023
$
Loss after income tax
(2,320,225)
(630,396)
Less Non-cash flows in loss
Depreciation and amortisation
318,891
442,929
Movements in non-operating cashflows
65,100
65,100
Grant funding capitalised
620,703
633,241
Share based payments
111,595
263,989
Changes in assets and liabilities, net of the effects of
purchase and disposal of subsidiaries
(Increase)/decrease in trade and other receivables
2,951,731
(3,057,757)
Increase/(decrease) in trade payables and accruals
128,077
506,369
Increase/(decrease) in provisions
(28,342)
59,168
Net cashflow from operations
(1,833,202)
(1,717,357)
Carnegie Clean Energy Annual Report 2024
57
CARNEGIE CLEAN ENERGY LIMITED
ABN 69 009 237 736
AND CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024
NOTE 22.
EVENTS AFTER THE REPORTING PERIOD
On 1 July 2024 the company received the funds associated with the $2.134 million (before costs) SPP which were
being held on trust by Automic Group who acted as lead broker for the SPP that was completed on 26 June 2024.
There has not been any matter or circumstance that has arisen after balance date that has significantly affected, or
may significantly affect, the operations of the Group, the results of those operations, or the state of affairs of the
Group in future financial periods.
NOTE 23.
RELATED PARTY TRANSACTIONS
Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. The Group
has not recorded any impairment on receivables relating to amounts owed by related parties. There were no loans
receivable or payable with related parties at year end.
Transactions and balances with Director related entities
Company secretarial services have been provided by Mooney & Partners Pty Ltd, a company associated with
Grant Mooney during the financial year. Costs of $60,0000 were incurred for these services during the year. These
transactions were undertaken on an arms-length basis under normal commercial terms.
Director Grant Mooney and Chief Executive Officer Jonathan Fievez jointly own solar energy microgrid operation
and maintenance company, Secure Energy Pty Ltd (previously EMC Asset Management Pty Ltd) (Secure
Energy). Security Energy provides operation and maintenance services to Carnegie to maintain the Garden
Island Solar Battery System. For the period, Secure Energy was paid $162,228 (2023: $559,279) inclusive of GST
for those services. The Company has established a Committee comprising independent directors Anthony
Shields and Terry Stinson to negotiate commercial terms of contracts with Secure Energy.
Secure Energy also subleases office space from Carnegie at the Rous Head facility in Fremantle, Western
Australia. The lease is on commercial terms and was negotiated between Secure Energy and the Committee.
Rent and outgoings paid to Carnegie during the year totalled to $26,073 (2023: $27,016) including GST.
Balances outstanding with Director and Director related entities:
Payable
Payable
Receivable
Receivable
2024
$
2023
$
2024
$
2023
$
Mooney & Partners Pty Ltd
5,500
5,500
-
-
Secure Energy Pty Ltd
17,136
140,778
-
(1,786)
Carnegie Clean Energy Annual Report 2024
58
CARNEGIE CLEAN ENERGY LIMITED
ABN 69 009 237 736
AND CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024
NOTE 24.
FINANCIAL RISK MANAGEMENT
Financial Risk Management Policies
The Board of Directors has responsibility for, amongst other issues, monitoring and managing financial risk
exposures of the Group. The board monitors the Group’s financial risk management policies and exposures and
approves the financial transactions within the scope of its authority. It also reviews the effectiveness of internal
controls relating to commodity price risk, counter party credit risk, currency risk, financing risk and interest rate
risk.
(a) Interest rate risk
The Group’s exposure to interest rate risk, which is the risk that a financial instrument’s value will fluctuate as
a result of changes in market interest rates. The effective weighted average interest rates in classes of
financial assets and liabilities is as follows:
Group
30 June 2024:
Financial assets:
Weighted Average
Effective Interest
Rate
%
Floating
Interest
Rate
$
Fixed Interest Rate
Maturing
Non-
interest
Bearing
$
Total
$
Within
year
$
1 to 5
years
$
Cash and equivalents
0.80%
211,512
500,000
-
3,017,161
3,728,673
Receivables
-
-
-
-
212,335
212,335
Financial assets
-
-
-
-
12,414
12,414
Non-current security deposits
0.06%
887,370
-
-
-
887,370
1,098,882
500,000
-
3,241,910
4,840,792
Financial liabilities:
Accounts payable
-
-
-
1,041,359
1,041,359
-
-
-
1,041,359
1,041,359
Group
30 June 2023:
Financial assets:
Weighted Average
Effective Interest
Rate
%
Floating
Interest
Rate
$
Fixed Interest Rate
Maturing
Non-
interest
Bearing
$
Total
$
Within
year
$
1 to 5
years
$
Cash and equivalents
2.69%
224,446
1,200,000
-
579,422
2,003,868
Receivables
-
-
-
-
3,188,988
3,188,988
Financial assets
-
-
-
-
12,414
12,414
Non-current security deposits
0.06%
554,951
-
-
-
554,951
779,397
1,200,000
-
3,780,824
5,760,221
Financial liabilities:
Accounts payable
-
-
-
913,282
913,282
-
-
-
913,282
913,282
(b) Credit Risk
The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to
recognised financial assets is the carrying amount, net of any provisions for doubtful debts, as disclosed in the
Statement of Financial Position and Notes to the Financial Statements.
The Group does not have any material credit risk exposure to any single debtor or group of debtors under
financial instruments entered into by the Group. The credit risk on liquid funds is limited because the counter
parties are banks with high credit ratings.
Carnegie Clean Energy Annual Report 2024
59
CARNEGIE CLEAN ENERGY LIMITED
ABN 69 009 237 736
AND CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024
NOTE 24.
FINANCIAL RISK MANAGEMENT (CONTINUED)
Financial Risk Management Policies (continued)
(c) Net fair value
The fair value of financial assets and liabilities not carried at fair value on a recurring basis approximate their
carrying value.
For unlisted investments, there is no material difference between their carrying amount and fair value.
Financial Instruments Measured at Fair Value
The financial instruments recognised at fair value in the Statement of Financial Position have been analysed
and classified using a fair value hierarchy reflecting the significance of the inputs used in making the
measurements. The fair value hierarchy consists of the following levels:
-
Quoted prices in active markets for identical assets or liabilities (Level 1);
-
Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly (as prices) or indirectly (derived from prices) (Level 2); and
-
Inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level
3).
2024
Level 1
$
Level 2
$
Level 3
$
Total
$
Financial assets:
—
Unlisted investments
-
-
12,414
12,414
-
-
12,414
12,414
2023
Financial assets:
—
Unlisted investments
-
-
12,414
12,414
-
-
12,414
12,414
(d) Sensitivity Analysis
Interest Rate Risk
The Group is not subject to any significant interest rate risk.
(e) Liquidity Risk
Liquidity risk arises form the possibility that the Group might encounter difficulty in settling its debts or
otherwise meeting its obligations related to financial liabilities. The Group manages this risk through the
following mechanisms:
Preparing forward looking cash flow analysis in relation to its operational, investing and
financing activities;
Monitoring undrawn credit facilities;
Obtaining funding from variety of sources;
Managing credit risk related to financial assets;
Investing only in surplus cash with major financial institutions; and
Comparing the maturity profile of financial liabilities with the realisation profile of financial
assets.
Carnegie Clean Energy Annual Report 2024
60
CARNEGIE CLEAN ENERGY LIMITED
ABN 69 009 237 736
AND CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024
NOTE 25.
SHARE BASED PAYMENTS (CONTINUED)
Types of share-based payment plans
Employee share option plan
Share options are granted to executives and staff at the discretion of the Board of Directors. Share options are only granted to Directors after approval by
shareholders. The plan is designed to align participants’ interests with those of shareholders by increasing value of the Company’s shares. Under the plan, the
exercise price of the options is set by the Board of Directors at the time of issue.
Consultant share options
Share options are granted to consultants at the discretion of the Board of Directors for services provided to the Group. The exercise price of the options is set by
the Board of Directors at the time of issue.
Consultant shares
Shares are granted to consultants at the discretion of the Board of Directors for services provided to the Group.
Total options outstanding and exercisable during the year are as follows;
2024
Grant Date
Expiry date
Consolidated
Exercise price
Balance at the
start of the year
Consolidated
Balance
Granted
Expired/forfeited/
other
Balance at the
end of the year
28 Oct 2019
28 Oct 2024
$0.0625
250,000,000
5,000,000
-
-
5,000,000
3 Feb 2021
3 Feb 2024
$0.0750
520,000,000
10,400,000
-
(10,400,000)
-
24 Feb 2021
24 Feb 2024
$0.0750
600,000,000
12,000,000
-
(12,000,000)
-
24 Mar 2021
23 Mar 2024
$0.0750
860,000,000
17,200,000
-
(17,200,000)
-
24 Mar 2021
25 Nov 2024
$0.1500
85,000,000
1,700,000
-
(1,700,000)
-
15 Sep 2021
15 Sep 2024
$0.1800
16,000,000
320,000
-
(320,000)
-
13 Oct 2021
13 Oct 2024
$0.1800
150,000,000
3,000,000
-
-
3,000,000
23 Nov 2021
22 Nov 2024
$0.1800
400,000,000
8,000,000
-
-
8,000,000
23 Sep 2022
28 Sep 2024
$0.1500
150,000,000
3,000,000
-
-
3,000,000
28 Oct 2022
28 Sep 2024
$0.1500
280,000,000
5,600,000
-
-
5,600,000
22 Nov 2022
25 Nov 2024
$0.1500
100,000,000
2,000,000
-
-
2,000,000
3,411,000,000
68,220,000
-
(41,620,000)
26,600,000
Weighted average exercise price
$0.104
$0.077
$0.156
Carnegie Clean Energy Annual Report 2024
61
CARNEGIE CLEAN ENERGY LIMITED
ABN 69 009 237 736
AND CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024
NOTE 25.
SHARE BASED PAYMENTS (CONTINUED)
2023
Grant Date
Expiry date
Exercise
price
Balance at
the start of
the year
Granted
Exercised
Expired/
forfeited/
other
Balance at the
end of the year
8 Feb 2018
24 Jan 2024
$0.06000
35,000,000
-
-
(35,000,000)
-
28 Oct 2019
28 Oct 2022
$0.00150
1,400,000,000
-
-
(1,400,000,000)
-
28 Oct 2019
28 Oct 2024
$0.00125
250,000,000
-
-
-
250,000,000
21 Jul 2020
20 Jul 2022
$0.00200
100,000,000
-
-
(100,000,000)
-
21 Jul 2020
20 Jul 2022
$0.00200
75,500,000
-
-
(75,500,000)
-
12 Jan 2021
12 Jan 2024
$0.00150
200,000,000
-
(140,000,000)
(60,000,000)
-
3 Feb 2021
3 Feb 2024
$0.00150
520,000,000
-
-
-
520,000,000
24 Feb 2021
24 Feb 2024
$0.00150
600,000,000
-
-
-
600,000,000
24 Mar 2021
23 Mar 2024
$0.00150
860,000,000
-
-
-
860,000,000
24 Mar 2021
25 Nov 2022
$0.00300
85,000,000
-
-
-
85,000,000
15 Sep 2021
15 Sep 2023
$0.00360
16,000,000
-
-
-
16,000,000
13 Oct 2021
13 Oct 2024
$0.00360
150,000,000
-
-
-
150,000,000
23 Nov 2021
22 Nov 2024
$0.00360
400,000,000
-
-
-
400,000,000
23 Sep 2022
28 Sep 2024
$0.00300
-
150,000,000
-
-
150,000,000
28 Oct 2022
28 Sep 2024
$0.00300
-
280,000,000
-
-
280,000,000
22 Nov 2022
25 Nov 2024
$0.00300
-
100,000,000
-
-
100,000,000
4,691,500,000
530,000,000
(140,000,000)
(1,670,500,000)
3,411,000,000
Weighted average exercise price
0.00226
0.00300
0.0015
0.00336
0.00201
The options outstanding as at 30 June 2024 had a weighted average exercise price of $0.047 and a weighted average remaining contractual life of 0.32 years.
Exercise prices range from $0.0625 to $0.18 in respect to options outstanding as at 30 June 2024.
Carnegie Clean Energy Annual Report 2024
62
CARNEGIE CLEAN ENERGY LIMITED
ABN 69 009 237 736
AND CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024
NOTE 26.
COMPANY DETAILS
The registered office and Principal place of business of the Company is:
Carnegie Clean Energy Limited
21 North Mole Drive
NORTH FREMANTLE WA 6159
NOTE 27.
PARENT INFORMATION
The following information has been extracted from the books and records of the parent and has been prepared
applying policies that are consistent with those of the Group.
EQUITY
Issued capital
211,159,219
209,071,177
Reserves
909,837
824,342
Accumulated losses
(196,173,658)
(194,246,253)
TOTAL EQUITY
15,895,398
15,649,266
STATEMENT OF COMPREHENSIVE INCOME
Profit/(loss) for the year
(2,096,827)
483,546
Total comprehensive income/(loss) for the year
(2,096,827)
483,546
The parent had no contingencies or material commitments as at 30 June 2024
2024
$
2023
$
STATEMENT OF FINANCIAL POSITION
ASSETS
Current assets
3,299,715
3,980,692
Non-current assets
13,054,725
12,550,426
TOTAL ASSETS
16,3654,440
16,531,118
LIABILITIES
Current liabilities
563,342
817,364
Non-current liabilities
39,022
64,488
TOTAL LIABILITIES
602,364
881,852
TOTAL NET ASSETS
15,752,076
15,649,266
Carnegie Clean Energy Annual Report 2024
63
CARNEGIE CLEAN ENERGY LIMITED
ABN 69 009 237 736
AND CONTROLLED ENTITIES
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024
NOTE 28.
INTERESTS IN SUBSIDIARIES
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries
in accordance with the accounting policy described in Note 1:
Country of
Incorporation
Percentage Owned (%)
2024
2023
Carnegie Recreational Watercraft Pty Ltd
Australia
100
100
CETO IP (Australia) Pty Ltd
Australia
100
100
CETO Wave Energy Ireland
Ireland
100
100
CETO Wave Energy UK
United Kingdom
100
100
Carnegie Technologies Spain Ltd
Spain
100
100
CMA Nominees Pty Ltd
Australia
100
100
New Millennium Engineering Pty Ltd
Australia
100
100
Pacific Coast Wave Energy Corp
Canada
95
95
NOTE 29.
CONTINGENCIES AND COMMITMENTS
The Group had no contingencies or material commitments as at 30 June 2024.
Carnegie Clean Energy Annual Report 2024
64
CARNEGIE CLEAN ENERGY LIMITED
ABN 69 009 237 736
AND CONTROLLED ENTITIES
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024
The following are the details of the consolidated entities that are included in this financial report
ENTITY NAME
TYPE OF
ENTITY
COUNTRY OF
INCORPORATION
% HELD
BY THE
GROUP
TAX
RESIDENCY
Carnegie Clean Energy Limited
(Parent Entity)
Body Corporate
Australia
Australia
CETO IP (Australia) Pty Ltd
Body Corporate
Australia
100%
Australia
CETO Wave Energy Ireland
Body Corporate
Ireland
100%
Ireland, Australia
CETO Wave Energy UK
Body Corporate
United Kingdom
100%
United Kingdom,
Australia
Carnegie Technologies Spain Ltd
Body Corporate
Spain
100%
Spain, Australia
Pacific Coast Wave Energy Canada
Body Corporate
Canada
95%
Canada, Australia
Carnegie Recreational Watercraft
Pty Ltd
Body Corporate
Australia
100%
Australia
CMA Nominees Pty Ltd
Body Corporate
Australia
100%
Australia
New Millennium Engineering Pty Ltd
Body Corporate
Australia
100%
Australia
Carnegie Clean Energy Annual Report 2024
65
CARNEGIE CLEAN ENERGY LIMITED
ABN 69 009 237 736
AND CONTROLLED ENTITIES
DIRECTORS’ DECLARATION
The Directors of the Company declare that:
1.
the financial statements, notes and consolidated entity disclosure statement, as set out on pages 15 to
41, are in accordance with the Corporations Act 2001 and:
a.
comply with Accounting Standards and the Corporations Regulations 2001; and
b.
give a true and fair view of the financial position as at 30 June 2024 and of the performance for
the year ended on that date of the Group;
2.
the financial statements comply with International Financial Reporting Standards as set out in Note 1;
3.
the remuneration disclosures that are contained in the Remuneration Report in the Directors’ Report
comply with the Corporations Act 2001 and the Corporations Regulations 2001; and
4.
The information disclosed in the consolidated entity disclosure statement is true and correct.
5.
the Chief Executive Officer and Chief Finance Officer have each declared that:
a.
the financial records of the company for the financial year have been properly maintained in
accordance with section 286 of the Corporations Act 2001;
b.
the financial statements and notes for the financial year comply with the Accounting Standards;
and
c.
the consolidated entity disclosure statement for the financial year is true and correct;
6.
In the Director’s opinion, there are reasonable grounds to believe that the Company will be able to pay
its debts as and when they become due and payable.
This declaration is made in accordance with a resolution of the Board of Directors.
GRANT MOONEY
TERRY STINSON
Director
Director
Dated this 27th day of August 2024
64
39
Carnegie Clean Energy Annual Report 2024
66
INDEPENDENT AUDITOR’S REPORT
To the Members of Carnegie Clean Energy Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Carnegie Clean Energy Limited (“the Company”) and its
controlled entities (“the Group”), which comprises the consolidated statement of financial position as at
30 June 2024, the consolidated statement of profit or loss and other comprehensive income, the
consolidated statement of changes in equity and the consolidated statement of cash flows for the year
then ended, notes to the financial statements, including material accounting policy information, the
consolidated entity disclosure statement and the directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations
Act 2001, including:
(a) giving a true and fair view of the Group’s financial position as at 30 June 2024 and of its financial
performance for the year then ended; and
(b) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Report section of our report. We are independent of the Group in accordance with the auditor
independence requirements of the Corporations Act 2001 and the ethical requirements of the
Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional
Accountants (including Independence Standards) (“the Code”) that are relevant to our audit of the
financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with
the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters.
We have determined the matters described below to be the key audit matters to be communicated in
our report.
Carnegie Clean Energy Annual Report 2024
67
Key Audit Matter
How our audit addressed the key audit matter
Carrying value of intangible assets
Refer to Note 13
As at 30 June 2024, the Group has recorded
intangible assets with a value of $15,465,386
which relate to capitalised development costs
and intellectual property associated with the
CETO technology development asset. This
asset is in the development phase and is not
yet available for use.
Under AASB 136 Impairment of Assets,
intangible assets that are not yet available for
use are subject to an annual impairment
assessment irrespective of whether indicators
of impairment exist. We consider the
recoverability of intangible assets to be a key
audit matter as it involved complex matters
including subjectivity and judgement, it is
material to users’ understanding of the
financial statements as a whole and it
required significant auditor attention and
communication with those charged with
governance.
Our procedures included but were not limited to
the following:
-
Reviewing management’s processes and
controls and their design and implementation;
-
Considering
the
appropriateness
of
the
methodology
and
assumptions
used
in
determining the recoverable amount;
-
Considering the determination of the cash-
generating unit;
-
Ensuring amounts capitalised are appropriate
under relevant accounting standards;
-
Considering the basis for the assumptions
underlying the forecasts in the model;
-
Reviewing the discount rate, growth rates and
other economic assumptions to available
internal and external data;
-
Determining if recoverable amount is in excess
of carrying amount;
-
Performing sensitivity analyses against key
assumptions;
-
Assessing the adequacy of disclosure within
the financial statements.
Other Information
The directors are responsible for the other information. The other information comprises the information
included in the Group’s annual report for the year ended 30 June 2024, but does not include the
financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not
express any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report, or our knowledge obtained in the audit or otherwise appears to be materially misstated. If,
based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of:
(a) the financial report (other than the consolidated entity disclosure statement) that gives a true and
fair view in accordance with Australian Accounting Standards and the Corporations Act 2001; and
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(b) the consolidated entity disclosure statement that is true and correct in accordance with the
Corporations Act 2001, and
for such internal control as the directors determine is necessary to enable the preparation of:
(a) the financial report (other than the consolidated entity disclosure statement) that gives a true and
fair view and is free from material misstatement, whether due to fraud or error; and
(b) the consolidated entity disclosure statement that is true and correct and is free from material
misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with Australian Auditing Standards will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
judgement and maintain professional scepticism throughout the audit. We also:
−
Identify and assess the risks of material misstatement of the financial report, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
−
Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Group’s internal control.
−
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
−
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the Group’s ability to continue as a going concern.
If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s
report to the related disclosures in the financial report or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of
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our auditor’s report. However, future events or conditions may cause the Group to cease to
continue as a going concern.
−
Evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and events in
a manner that achieves fair presentation.
We communicate with the directors regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate
threats or safeguards applied.
From the matters communicated with the directors, we determine those matters that were of most
significance in the audit of the financial report of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
REPORT ON THE REMUNERATION REPORT
Opinion on the Remuneration Report
We have audited the Remuneration Report included within the Directors’ Report for the year ended 30
June 2024.
In our opinion, the Remuneration Report of Carnegie Clean Energy Limited for the year ended 30 June
2024 complies with Section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration
Report in accordance with Section 300A of the Corporations Act 2001. Our responsibility is to express
an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian
Auditing Standards.
HLB Mann Judd
M R Ohm
Chartered Accountants
Partner
Perth, Western Australia
27 August 2024
Carnegie Clean Energy Annual Report 2024
70
21 North Mole Drive
North Fremantle WA 6159
+61 8 6168 8400
www.carnegiece.com
Carnegie Clean Energy Limited
ABN: 69 009 237 736