Crest Energy first recipient of marine energy fund

NEWS RELEASE

Friday, 30 May 2008

Crest Energy first recipient of marine energy fund

New Zealand based marine energy company, Crest Energy, is delighted to be the first recipient of the Government’s NZ$8 million Marine Energy Deployment Fund.

Crest Energy will use the NZ$1.85 million grant to partially fund the first stage of an underwater power station comprising of up to three tidal turbines at the entrance to Kaipara Harbour. Subject to the granting of resource consents, the total project comprises 200 marine turbines introduced in stages. The turbines will be completely submerged and will convert energy from tidal movements into electricity.

Anthony Hopkins, a director of Crest Energy, says: “While the consents hearing process is still underway, it is very encouraging to have this level of Government support.”

Construction planning is under way, as are the first steps towards raising significant capital for the project. Potential funding routes include: stock market listing, risk capital from major banks, and partnerships with electricity industry participants and infrastructure companies.

If Crest Energy proceeds to the construction phase the total expenditure over the first 10 years of the project is estimated at NZ$600 million, to be offset by modest but growing revenues from year three.

ENDS

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