Carnegie Wave Energy is in discussions with the Water Corporation to provide renewable energy to power the Southern Seawater Desalination Plant.
Carnegie said there was potential to supply up to 2 megawatts of wave power to supply the plant from its Perth Wave Energy project.
“The Water Corporation is open to either a short term or long term electricity supply arrangement subject to the parties agreeing satisfactory commercial terms.” Carnegie said in a statement.
Carnegie has previously announced other potential power off-take deals for its wave energy project, including a proposal from the Australian Department of Defence.
It said a decision on power supply arrangements was expected shortly.
Carnegie stocks were up 13 per cent at 12:20PM, WST, trading at 3.4 cents.
