The deal provides for the companies to collaborate on commercial development and roll-out of the technology, which is a sea-bed-based wave power converter using a small diameter pipe to carry high pressure seawater ashore to a turbine. Having the equipment on the sea bed offers relatively more shelter.

Carnegie and REH have worked together through the Australian firm’s holding in SeaPower Pacific Pty, which REH bought in 2005. Future co-operation between the firms, such as Carnegie’s commitment to help fund R&D to commercialisation, is subject to the Australian company raising sufficient funds by 1 December. In total, Carnegie is to provide US$6M over two years.

Under their deal, projects developed between the companies could see Carnegie hold between 51%-97.5% of equity in each case, though the nominal is 90% with the 10% balance given to REH based on the US$6M contribution.

Last month, REH signed a Memorandum of Understanding with edf Energies Nouvelles covering the use of the technology in the northern hemisphere and at Reunion Island in the Indian Ocean. The deal gave REH first rights to participate in EDF’s projects in the territories.