Wave energy developer Carnegie Wave Energy has secured a $10m ($10.3m) grant from the federal government to support its A$31m ($32m) grid-connected CETO wave energy project which will be located at Garden Island in Western Australia.
The Western Australian Government provided A$5.5m ($5.6m) for project as part of the state's low emissions energy development program.
Carnegie Wave Energy said it also secured A$16m ($16.5m) equity funding from Australian Special Opportunity Fund, a US -based institutional investor to support the project.
The company said the project will have a capacity of 2MW and will be based on the recently completed preliminary design.
Carnegie Wave Energy will begin the detailed design phase of the project and will also seek government approvals and carry out community consultation.
The project will be commissioned next year with first power due into the grid at the end of 2013.
Power supply arrangements are expected to be finalized shortly, the company said.
The company has signed memorandums of understanding covering the supply of power from the Perth Wave Energy Project with both the Australian Department of Defence and the Western Australian Government owned power retailer, Synergy.
The CETO wave energy project will consist of an array of submerged CETO units, subsea pipelines to shore, hydraulic conditioning equipment and an onshore power generation facility.
The project which will use Carnegie's submerged CETO technology can be expanded to 5MW, at a later stage.