UPDATE 2.25pm: Shares in Carnegie Wave Energy were firmer after it announced it had signed a co-operation agreement with the Water Corporation for its proposed water desalination plant on Garden Island.
The desalination plant is a component of the company's Perth Wave Energy Project, which aims to demonstrate how wave energy can be used the generate electricity for the grid and power a desalination plant.
If successful, it will be the first wave-powered desalination plant in the world.
Water Corporation is considered a world leader in desalination plants, having built and operated two such facilities (Kwinana and Binningup).
Chief executive Sue Murphy said the organisation was focused on minimising the environmental footprint of its desalination operations.
"Carnegie's wave powered seawater desalination technology offers a novel and promising approach to achieving desalinated fresh water with zero greenhouse gas emissions," she said.
Carnegie is yet to complete detailed designs for the desalination plant, secure environmental approvals or consider how the construction and commissioning of the plant could be integrated into the broader wave energy project.Shares in the company closed up 0.7 cents, or 11.48 per cent, at 6.8 cents.