Carnegie’s €773k Tax Credit Sale Signals Critical Funding Milestone Amid Wave Energy Race
Carnegie Clean Energy’s Spanish subsidiary has sold its 2025 Basque R&D tax deductions for €773,163, securing immediate funding to advance its ocean wave energy technology under the ACHIEVE Programme.
- Sale of 2025 Basque R&D tax deductions nets €773k
- Funds support deployment of CETO wave energy prototype
- ACHIEVE Programme validated as R&D project by Basque tax authorities
- Transaction leverages Basque Country’s Article 64bis tax incentive
- Proceeds expected before year-end after associated fees
Carnegie’s Strategic Cash Injection
Carnegie Clean Energy (ASX, CCE) has taken a significant step in funding its ocean energy ambitions by selling its 2025 Basque research and development tax deductions through its wholly owned subsidiary, Carnegie Technologies Spain (CTS). The transaction, valued at €773,163 (approximately AUD 1.37 million), provides an immediate cash boost to support the ongoing commercialisation of its wave energy technology.
Leveraging Regional Tax Incentives
This sale is made possible by a binding tax assessment report recognising the ACHIEVE Programme as an eligible R&D project under the Basque Country’s tax system for 2025 through 2027. By utilising Article 64bis, a specific Basque R&D tax incentive, CTS can transfer its tax deductions to third-party financiers in exchange for upfront cash. This mechanism not only accelerates funding but also reflects the growing maturity of regional support frameworks for marine renewable energy.
The ACHIEVE Programme and CETO Technology
The ACHIEVE Programme is central to Carnegie’s strategy, involving the deployment and operation of a CETO wave energy prototype at the Basque Marine Energy Platform (BiMEP). This open ocean test site will allow Carnegie to collect vital performance data over up to two years, validating its technology’s commercial viability. The programme benefits from a complex web of European and regional funding, including support from the Spanish RENMARINAS DEMOS initiative and the Basque Government’s Ente Vasco de la Energia.
Broader European Wave Energy Context
Carnegie’s efforts align with the EuropeWave PCP programme, a €22.5 million collaborative R&D initiative backed by the EU’s Horizon 2020 fund. EuropeWave aims to accelerate the development of cost-effective wave energy converters capable of withstanding harsh marine environments, contributing to the EU’s ambitious ocean energy targets of 100MW by 2027 and 1GW by 2030. Carnegie’s progress thus fits neatly into a broader European push towards decarbonisation and renewable innovation.
Financial and Strategic Implications
While the €773k proceeds come with approximately €70k in associated fees, the net cash inflow before year-end will strengthen Carnegie’s balance sheet and fund critical next steps in the ACHIEVE Programme. This monetisation of tax deductions underscores the importance of regional incentives in de-risking and financing emerging marine technologies. However, the announcement leaves open questions about the overall impact on Carnegie’s earnings and the timeline for subsequent project milestones.
Bottom Line?
Carnegie’s savvy use of Basque tax incentives injects vital cash as it rides the wave toward commercialising ocean energy.
Questions in the middle?
- How will the ACHIEVE Programme’s performance data influence Carnegie’s commercial rollout?
- What are the longer-term financial impacts of recurring R&D tax deduction sales on Carnegie’s profitability?
- Could further regional or EU funding accelerate Carnegie’s path to large-scale deployment?
