Carnegie Wave Energy has announced a share purchase plan to raise $6 million to help commercialise its CETO wave energy technology.

Existing shareholders will be given the chance to subscribe for $3000-$15,000 worth of new shares in the company priced at 3.2 cents, a 20 per cent discount to its last five-day average share price.

The funds raised will help the company set up its "wave to wire" commercial demonstration project at Garden Island south of Perth.

Carnegie's managing director Dr Michael Ottaviano said thedemonstration project would position Carnegie at the forefront of the emerging wave energy industry and unlock a global, untapped market.

"Carnegie has made exceptional progress in developing its Garden Island project," he said.

Carnegie said the design for the project was complete and it was in commercial discussions with suppliers to finalise project cost and place orders for components and work packages.

"This process is due for completion in the current quarter with manufacturing and construction expected to take 12 months," the company said.