UPDATE 2.15pm: Shares in Carnegie Wave Energy were higher after the company received an $11 million Federal Government grant for its CETO 6 project at Garden Island.
Carnegie said the $11 million grant from the Australian Renewable Energy Agency, along with a $20 million five-year loan from the Clean Energy Finance Corporation announced in March, would allow it to go ahead with the CETO 6 project.
"All the power generated from the project will be bought by the Australian Department of Defence under Carnegie's existing power supply agreement for use at HMAS Stirling on Garden Island," the company said in a statement.
The project will have a three-megawatt capacity and was expected to cost $31 million to build.
Design work on the project has been underway since 2013.
Carnegie said the CETO 6 design built on a decade of experience gained in previous generations including the design and manufacture of the current CETO 5 units.
"The Perth Project, utilising the CETO 5 technology, has progressed up to the point of commissioning and an update on the project will be made shortly," the company said.
Carnegie shares closed flat at five cents after touching an intraday high of 5.3 cents.