Water – Energy Nexus & Sustainable WaterSource through Ocean Energy

Candace Brown

9/18/2014 1

Water – Energy NexusSustainable Water Sourcethrough Ocean Energy

Candace BrownSanta Cruz, California ResidentSeptember 2014

Three messages in my presentation

1. Any water sourcing solution has an energycost and often the cost is overlooked or atleast underestimated.

2. What is Ocean Energy and unique solutionsare sprouting up in small communities aroundthe world?

3. Lower cost sustainable water source withminimal environmental impact – ConsolidatedWave energy and Desalination solution inPerth, Australia.

Water – Energy Nexus & Sustainable WaterSource through Ocean Energy

Candace Brown

9/18/2014 2

19%: The Great Water-Power Wake-UpCall Ever wonder how much juice it takes to move water? A few years back, number crunchers at the California Energy Commission tried to add up

how much electrical power (and other forms of energy) goes into using water in California.The bottom line number they came up with: 19%. That is, nearly a fifth of all the powergenerated in California — as well as huge quantities of natural gas and diesel fuelconsumed in the state — goes into water-related uses. You might call that report,entitled California’s Water-Energy Relationship, as The Great Wake-Up Call. The idea thatso much power could go into this one vital activity—moving and treating and usingwater—is both stunning and captivating. And it has spurred both state agencies and waterand power utilities into action.

22% of that number is moving water – water pumping, extraction, transfer and distribution –10,300 GWh/California and another 4% - Wastewater Treatment – 2,000 GWh

The logic for that is pretty straightforward: Water is heavy (62.4 pounds per cubic foot) andtends to resist moving uphill. It takes a lot of energy to move water, but also to treat it, andthen treat it again after we use it.

The remainder of the 19% - 15% Farm Use – Irrigation, crops, livestock – 7,400 GWh, 28%Household/Residential – Heating water, washing clothes and dishes “after the meter” –13,500 GWh, 18% Commercial – Cooking, heating and cooling – 8,700 GWh, 13% Industrial– Manufacturing sectors, construction, mining, airport usage – 6,000 GWh

http://blogs.kqed.org/climatewatch/2012/06/10/19-percent-californias-great-water-power-wake-up-call/

Energy Makes Up Half of Desalination PlantCosts: Study – Bloomberg – Apr 30, 2013

• Energy is the largest single expense for desalination plants, accounting for as much ashalf of the costs to make drinking water from the sea, according to a report.

• Desalination plants on average use about 15,000 kilowatt- hours of power for everymillion gallons of fresh water that’s produced, the Pacific Institute said today in a report.In comparison, wastewater reuse draws as much as 8,300 kilowatt- hours of power for thesame volume and importing a similar amount of water into Southern California requiresas much as 14,000 kilowatt-hours of electricity, it said.

• A 25 percent increase in energy expenses would raise the cost of producing water byabout 9 percent and 15 percent at reverse osmosis and thermal desalination plantsrespectively, according to the report. Electricity prices in California are projected to riseby about 27 percent from 2008 to 2020 in inflation-adjusted dollars as power gridinfrastructure is maintained or replaced, capacity is added and more renewable energyis integrated.

• http://www.bloomberg.com/news/2013-05-01/energy-makes-up-half-of-desalination-plant-costs-study.html

Water – Energy Nexus & Sustainable WaterSource through Ocean Energy

Candace Brown

9/18/2014 3

Santa Cruz Water System Energy UseNow…..

The City’s water system uses approximately 4,200 megawatt-hours per year(MWh/yr) of electrical energy based on both its use of surface and groundwatersources. The District’s water system uses approximately 2,600 MWh/yr of electricalenergy based on its use of groundwater sources (see Appendix O, Summary ofEnergy and GHG Reduction Approach).

Page 5 of http://www.scwd2desal.org/documents/Draft_EIR/5-9_Utilities_DEIR.pdf

….and Desalination Proposed

Operation Conditions - Energy (MWh/yr) Half Capacity - 6,800 Full Capacity 13,700

For typical non-drought year operations, the annual energy use of the proposed scwd2

Desalination Facility of 6,800 MWh per year is equivalent to any one of the followingexamples:

The annual energy used by a mid-sized hospital such as Dominican Hospital.

The annual energy use (electric and gas) for approximately 370 Santa Cruz areahouseholds.

Page 14 and 15 ofhttp://www.scwd2desal.org/documents/WhitePapers_Fact_Sheets/scwd2_EnergyPaper_04_08_11.pdf

Water – Energy Nexus & Sustainable WaterSource through Ocean Energy

Candace Brown

9/18/2014 4

Three messages in my presentation

1. Any water sourcing solution has an energycost and often the cost is overlooked or atleast underestimated.

2. What is Ocean Energy and unique solutionsare sprouting up in small communities aroundthe world?

3. Lower cost sustainable water source withminimal environmental impact – ConsolidatedWave energy and Desalination solution inPerth, Australia.

What is Ocean Power – Part I?Ocean power includes technologies that tap the sea’s energy, not only that ofcrashing waves but also the motion of tides and even the heat stored in theoceans, which are the world’s largest solar collectors. Ocean power, then,includes three types: wave power, tidal power and thermal energy conversion.

1. Wave Energy - The most obvious form of ocean energy is the power of waves.For energy conversion, wave power can be captured on or near shore as well asoffshore. Offshore systems use the motion of the waves either to create anelectrical charge with a pump and a floating bobber or buoy, or to operatehydraulic pumps within the joints of a floating device resembling a string ofsausages. The pressurized fluid from the pumps powers a turbine.6

Onshore techniques include the pendulor, the tapchan and the oscillating watercolumn. The pendulor uses a flap swung back and forth by waves to power apump and generator. The tapchan is a tapered channel that forces waveshigher and thus feeds water into a reservoir above sea level; this water then isused to turn a turbine, as with conventional hydroelectric generation. A relatedwave device pressurizes seawater to send it to an elevated onshore storage tankfor release through a turbine; this device was tested in the Gulf of Mexico before“seeking actual ocean environments” for in-situ testing.7 And the partiallysubmerged oscillating water column channels waves into an opening tocompress the air column above the water, forcing it through a turbine; as thewave retreats, the falling water pulls the air through the turbine once again.

Water – Energy Nexus & Sustainable WaterSource through Ocean Energy

Candace Brown

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What is Ocean Power – Part II?2. Tidal Energy - To convert tidal power into electricity, a power plant site requires alarge volume of fast-moving water. This can be found either in locations with awide swing in tidal heights or with tidal flows that pass through a narrow channel.The former is often called “traditional” tidal power, while the latter is called “tidalstream” power.8Forty years ago, tidal power plant design took its cue from the establishedhydroelectric industry. The world’s four “traditional” tidal power plants, in France,Russia, Canada and China, use a “barrage” or dam that functions much like anonshore dam but requires a tidal inlet or estuary. The tide comes in and builds up adifference in water height, and then water is released through gates into turbines.9Tidal stream power is featured in two different designs: the tidal fence (underwaterturnstiles spanning a channel or narrow strait) and the tidal turbine.Of the three types of tidal power systems – “traditional,” tidal fence and tidalturbine – the tidal turbine is simplest, and the one generating the most research atpresent. These are essentially underwater wind turbines turned by the tidal currents.Even though ocean currents are slower than wind speeds (currents of 4 to 5.5 mphare optimal for tidal turbines), the density of water is almost 1,000 times that of air,which translates to a higher energy yield. The turbines also have little impact on theenvironment; the other types can have problems with silt buildup and can interferewith sea life migration because they obstruct a channel.10

What is Ocean Power – Part III?3. Ocean Thermal Energy Conversion – Finally, ocean thermal energy conversion (OTEC) is

the least accessible form of ocean power, and perhaps the least useful for the U.S. Towork, OTC needs an optimal temperature difference between warm water on thesurface and colder water below of about 36 degree F—a range found only in tropicalcoastal areas near the equator. In the U.S., OCT research and testing is taking place inHawaii. The cold water is brought to the surface by a deeply submerged intake pipe.

Transportation and Transmission of the 3 forms of Ocean Energy – Ocean energy does notinvolve or require fuel transportation or storage. As with other alternative methods ofgenerating electricity, however, ocean energy processes need transmission capacity tomake them a viable power source. Electricity generated offshore by OTC and deep-water wave systems typically would send the power through an underwater cable to theelectrical grid onshore. And all transmission lines can involve issues of access, rights ofway and property ownership.

Source for What is Ocean Power Part I, II and III slides:http://www.window.state.tx.us/specialrpt/energy/renewable/ocean.phpState of Texas – Texas Comptroller of Public Accounts

NOTE: The Carnegie Wave Energy Perth Wave Energy Project (PWEP) is carrying high-pressure water to shore and not electricity to generate electricity with an off-the-shelfhydro-electric turbine onshore. http://arena.gov.au/project/perth-wave-energy-project/

Water – Energy Nexus & Sustainable WaterSource through Ocean Energy

Candace Brown

9/18/2014 6

Ocean Energy – New Technologies and many Global Projects – Part I

YouTube – 200 video Playlist on popular Wave power & Energy videos – source of many of the videos below.https://www.youtube.com/playlist?list=PLNrNZRro6Qu3i3GHerUgvWcqAwYQoFmKU“Even though wave energy is at the very beginning of the manufacturing learning curve, capital costs per netkw are already down in the range of wind energy devices, and below solar.”http://www.oceanenergycouncil.com/ocean-energy/wave-energy/Carnegie CETO commercialization as the largest Wave Farm in Perth - 1 megawatt per buoy = 500 homeshttps://www.youtube.com/watch?v=b0Jbg1GVcUY&list=PLNrNZRro6Qu3i3GHerUgvWcqAwYQoFmKU&index=69Perth Wave Energy Project Animation – 2013 – small building footprint and a few large buoys a few kilometersout to sea. It consolidate the desalination process with the force of water to convert energy – very efficient.https://www.youtube.com/watch?v=Ki5AbYro4hA&index=10&list=PLNrNZRro6Qu3i3GHerUgvWcqAwYQoFmKUOregon State wave-energy buoy with support from National Science Foundation – 11th one now –experimenting with buoys that marine life can navigate around….acoustic avoidance systems....80-90% of timeenergy – twice wind and solar – projects that ocean energy is up to 6% of US energy in the future.https://www.youtube.com/watch?v=1LJpBnxzG30&list=PLNrNZRro6Qu3i3GHerUgvWcqAwYQoFmKU&index=107SRI International’s Wave-Powered Generators for Clean Energy – “Artificial Muscle – Polymer that whenstretched can convert energy from mechanical to electrical – great enhancement for buoy systems. 100 timesmore efficient than a coil system to capture energy.https://www.youtube.com/watch?v=ePOB8pUXhBg&list=PLNrNZRro6Qu3i3GHerUgvWcqAwYQoFmKU&index=47Queen’s University Belfast, Ire. – Comparison of Direct (eg., CETO) and Indirect Methods Wave-powered Desalhttp://www.spok.dk/seminar/An%20autonomous%20wave-powered%20desalination%20system_21.pdfStanford – Wave Energy Conversion - Following stakeholder consultations and scenario development, InVESTcan est. how the current location, amount, delivery, and value of services are likely to change in the future.http://www.naturalcapitalproject.org/pubs/marine/MarineInVEST_Apr2010.pdf

Ocean Energy – New technologies and many Global Projects –Part II

UC Berkeley - Wave energy – 1 square meter of the underwater carpet designed by UC Berkeley provides energyfor two households – 10 meter carpet can provide the same amount of energy as a soccer field of solar panelsas wave action provides very dense energy. Ocean waves and tidal currents are one of the most untapped andimportant, clean, cheap, rich, and reliable sources of renewable energy on the earth. UC Berkeley professorReza Alam and his team at the TAF Lab (Theoretical & Applied Fluid Dynamics Laboratory) have developed a"wave carpet" which can extract the energy of ocean waves and turn it into electricity and freshwater forhouseholds and cities. Series: "UC Berkeley News" [Science] [Show ID: 27834]https://www.youtube.com/watch?v=gZFM0ghuwZsScotland – Air flow from wave power station developed by Voith Hydro (www.voith.com) – Passive system thatcaptures airflow from even low-wave motion in a low-profile coastal structure. They claim that 40% of all globalenergy could come from ocean energy (that amounts to 700-800 nuclear power plants).https://www.youtube.com/watch?v=gcStpg3i5V8New Zealand – Current conversion – tidal and wave energy – talks about analogy to wind but current is slowerand more energy with water with resistance. Working with a number of partners – Experimenting with NorthernIreland technology, SeaGen from Marine Current Turbines, Ltd.https://www.youtube.com/watch?v=BxXRejkyeRU&list=PLNrNZRro6Qu3i3GHerUgvWcqAwYQoFmKU&index=110Spain – Atlantic - Offshore Desalination Using Wave Energy by Álvaro Serna and Fernando TadeoDepartamento de Ingeniería de Sistemas y Automática, Universidad de Valladolid, Calle Doctor Mergelina s/n,47011 Valladolid, Spain Received 27 March 2013; Revised 30 May 2013; Accepted 23 June 2013http://www.hindawi.com/journals/ame/2013/539857/Wales – Tidal Barrage – no seafloor drilling – 10 MW of electricity for 10,000 homes – August 7, 2014 articlehttp://thinkprogress.org/climate/2014/08/07/3468583/major-milestone-tidal-power-wales/

Water – Energy Nexus & Sustainable WaterSource through Ocean Energy

Candace Brown

9/18/2014 7

Ocean Energy – New Technologies and many Global Projects –Part III

Portugal - Wave grid of 3 long steel 4-piece sectional devices (142M long x 3.5M diameter) that are semi-submerged 3 miles off coast of Aqucadoura. They generate 2.25 MW – enough electricity for 1,500 homes.https://www.youtube.com/watch?v=fet4bCYvmLwBrazil private/government initiative – first wave energy system in Latin America – external arms that sit on thesurface near shore or wharf or breakwater edge.https://www.youtube.com/watch?v=GA_UgVm9bvUNorthern Europe - Wave Star working system in the North sea and Danish fjords since 2006. Note they arepads on standing barges or side of larger vessels.https://www.youtube.com/watch?v=Fu5AK_a9KN0Norwegian company, Pontoon Power AS, formed in 2010, that have designed a very scalable PontoonPower Converter (PPC) farm that can be in very remote locations out to sea.https://www.youtube.com/watch?v=vS-s9QzPGDgKiev Eco Wave Power – small scale wave energy generation system – different shapes for differentenvironments and lyrics of energy-independence song.https://www.youtube.com/watch?v=VtTZ855O5dsSingapore inventor outlines the many forms of energy converters using fluid pumps for waves or flowingcurrents – water/air piston pumps up to a water storage unit, T-Bar (paddle-like) piston pump, Actuator barpiston pump, Chain piston pump, Floating oscillating pontoon & piston pump (or with addition of paddle),Oscillating actuator T-bar and piston pump, Horizontal rotary wheel & piston pump (or Vertical rotary wheel),Axial flow turbine and piston pump, Curve rack and piston pump, mobile piston pump container system,ocean farm piston pump system (on a single platform)https://www.youtube.com/watch?v=fYfs-qYGzvs

Three messages in my presentation

1. Any water sourcing solution has an energycost and often the cost is overlooked or atleast underestimated.

2. What is Ocean Energy and unique solutionsare sprouting up in small communities aroundthe world?

3. Lower cost sustainable water source withminimal environmental impact – ConsolidatedWave energy and Desalination solution inPerth, Australia.

Water – Energy Nexus & Sustainable WaterSource through Ocean Energy

Candace Brown

9/18/2014 8

Wave Power Levels Global Distributionhttp://www.window.state.tx.us/specialrpt/energy/renewable/ocean.php

Santa Cruz

Perth

Perth – CETO Technology – Only FullySubmerged Wave Energy & Desal Solution

About Carnegie Wave Energy Limited is an Australian, ASX-listed (ASX:CWE) wave energy technologydeveloper. Carnegie is the 100% owner & developer of the CETO Wave Energy Technology intellectual property.About CETO CETO Power & Waterhttp://carnegiewave.com/files/asx-announcements/2014/140212_DPP%20Update.pdfThe CETO system is different from other wave energy devices as it operates under water where it is safer fromlarge storms and invisible from the shore. Fully submerged buoys are tethered to seabed pump units. Thesebuoys move with the motion of the passing waves and drive the pumps. The pumps pressurize water which isdelivered onshore via a subsea pipe.Onshore, high-pressure water is used to drive hydroelectric turbines, generating zero-emission electricity.The high-pressure water can also be used to supply a reverse osmosis desalination plant, replacing or reducingreliance on greenhouse gas-emitting, electrically-driven pumps usually required for such plants.The technology is also capable of generating power offshore should the specific characteristics of aproject site require it. http://carnegiewave.com/index.php?url=/ceto/ceto-freshwaterCETO technology characteristics include:• Converts ocean wave energy into zero-emission electricity and desalinated water.• Environmentally friendly, has minimal visual impact and attracts marine life.• Fully-submerged in deep water, away from breaking waves and beachgoers, and unaffected by storms.

Desalination ProjectCarnegie’s CETO wave energy technology is the only fully submerged wave energy technology capable ofproducing directly desalinated water. A CETO desalination plant is capable of significantly minimizing energylosses when compared with traditional desalination plants. The below is a comparison of energy losses betweena traditional coal powered desalination plant versus a CETO desalination plant.http://carnegiewave.com/index.php?url=/projects/desalination

Water – Energy Nexus & Sustainable WaterSource through Ocean Energy

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Carnegie CETO Freshwater SchematicImage source: http://carnegiewave.com/index.php?url=/ceto/what-is-cetoYouTube Animation: https://www.youtube.com/watch?v=Ki5AbYro4hA –Gives you a very real sense of the elegance of the solution.

Perth Wave Energy & Desalination CostsPerth Wave Energy Project (‘PWEP’) Fact File• Upon completion, PWEP will be the first commercial-scale CETO grid and desalinatedwater connected wave energy project.• The Perth Wave Energy Project is supported by $13.1m in Australian Government fundingthrough the Australian Renewable Energy Agency’s Emerging Renewables Program.• PWEP is supported by $7.3 million from the Government of Western Australia's Low EmissionsEnergy Development (LEED) Fund. This is part of a larger $10 million LEED grant, awarded toCarnegie by the Western Australian Government, to support the development of the CETOtechnology from concept through to completion of PWEP.• The Desalination Pilot is supported by a $1.27m AusIndustry grant from the CleanTechnology Innovation Program.• Utilizing Carnegie’s fully submerged and commercial proven CETO wave energy device.• Providing clean, renewable energy and potable desalinated water to Australia’s largestnaval base,HMAS Stirling, on Garden Island in Western Australia.For more information: http://carnegiewave.com/files/asx-announcements/2014/140212_DPP%20Update.pdfDr Michael Ottaviano, CEO & Managing DirectorCarnegie Wave Energy Limited +61 8 9486 4466enquiries@carnegiewave.comWebsite: www.carnegiewave.com

Water – Energy Nexus & Sustainable WaterSource through Ocean Energy

Candace Brown

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Effectiveness – Supply-Storage Inc./Qtyand Demand Dec./Qty

What is CETO - Named after a Greek sea goddess, CETO offers the potential to revolutionize power and waterproduction globally. CETO harnesses the enormous renewable energy present in our ocean's waves and converts itinto two of the most valuable commodities underpinning the sustainable growth of the planet; zero-emission electricityand zero-emission desalinated water.Unlike other wave energy systems currently under development around the world, the CETO wave power converter isthe first unit to be fully-submerged and to produce high pressure water from the power of waves.By delivering high pressure water ashore, the technology allows either zero-emission electricity to be produced (similarto hydroelectricity) or zero-emission freshwater (utilizing standard reverse osmosis desalination technology). The systemcan also be used for co-production of zero-emission electricity and freshwater.

Advantages of CETOSimple - pumping system, electrical generation onshore, manageable sizeDeveloped & Proven - over 10 years in-ocean at 1/3rd & commercial scaleFlexible - operates in variety of water depths, swell directions, tides & seafloor conditionsNo Visual Impact - fully submergedStorm Survivability - fully submerged & energy relief systemSecurity - provides emissions free sustainable energy and water security to countries & islandsScalable - modular array designMinimal - environmental impact, co-exists with marine life.Desalination - zero-emission freshwater & co-production possible

The $31.2m Project is supported by Australian Federal Government funding through the Emerging RenewablesProgram, and the Western Australian State Government through the Low Emissions Energy Development fund. TheAustralian Department of Defense will buy the electricity generated by the Project to supply HMAS Stirling.http://carnegiewave.com/index.php?url=/ceto/what-is-ceto

Practicability – Est. Costs (Capital & Oper. Exps),Regulatory & Land-use Considerations & Acq., Proven/existingImplementations or examples

Carnegie Wave Energy Limited CETO technology characteristics include:• Converts ocean wave energy into zero-emission electricity and desalinated water.• Environmentally friendly, has minimal visual impact and attracts marine life.• Fully-submerged in deep water, away from breaking waves and beachgoers, and unaffected by storms.Perth Wave Energy Project (‘PWEP’) is Australia’s first commercial-scale CETO grid-connected wave energy project.• The project is supported by $13.1m in Australian Government funding through the Australian Renewable Energy Agency’s Emerging

Renewables Program.• PWEP is supported by $7.3 million from the Government of Western Australia's Low Emissions Energy Development (LEED) Fund.

This is part of a larger $10 million LEED grant, awarded to Carnegie by the Western Australian Government, to support thedevelopment of the CETO technology from concept through to completion of PWEP.

• Utilizing Carnegie’s fully submerged and commercial proven CETO wave energy device.• Providing clean, renewable energy to Australia’s largest naval base, HMAS Stirling, on Garden Island in Western Australia.The CETO desalination pilot will be co-located with Carnegie's Perth Wave Energy Project on Garden Island, integrating off-the-shelfreverse osmosis desalination technology with the Perth Project’s infrastructure.• Key tasks ahead of construction of the desalination pilot plant include completing detailed design, securing environmental

approvals and the potential integration of the construction and commissioning of the desalination pilot into the delivery of PerthWave Energy Project.

• The latter will be cost effective as it will allow both projects to be constructed at the same time and then commissionedsequentially.

• The desalination pilot project is supported by $1.27m in Federal Government grant funding from AusIndustry’s Clean TechnologyInnovation Program.

• Providing potable desalinated water.• http://carnegiewave.com/files/asx-announcements/2014/140212_DPP%20Update.pdf

Water – Energy Nexus & Sustainable WaterSource through Ocean Energy

Candace Brown

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Environmental & Community Impact – Part IGreenhouse gases & energy consumption or production,Species impacts(sensitive/threatened/endangered),Environment benefits, Community/Economic impacts & benefits

Legislative Framework - The Project requires a range of environmental approvals from the Australian Government, including Department ofDefense (Defense), and the Government of Western Australia. Garden Island is Commonwealth owned and an active defense base. As suchenvironmental management and approvals on Garden Island are managed by Defense, in accordance with the Environment Protection andBiodiversity Conservation Act 1999 (EPBC Act) and Defense policy.Offshore of Garden Island, the primary environmental State legislation under which approvals are required are the Environmental ProtectionAct 1986 (EP Act), the Navigable Waters Regulations 1958 and the Wildlife Conservation Act 1950. Aerial view of the Perth Wave EnergyProject, Western Australia© Copyright Carnegie Wave Energy Limited 2012

Environmental AssessmentCarnegie has undertaken an extensive environmental impact assessment (EIA) of all elements of the Project using in-house and externalenvironmental experts. Separate marine and terrestrial environmental management plans (EMP) have been completed, in consultation withkey stakeholders, to support the Project and applications for regulatory approvals. The EMP’s describe the Project, the receiving environment,identify and assess potential impacts and identify mitigation and management strategies to protect the environment.

Terrestrial Environment - Garden Island has significant natural landscapes and high natural heritage values for its scientific diversity ofimportant, and also rare, flora and fauna. The island is a significant habitat for several species that have declined in the Perth metropolitanarea, including the brush bronze wing, lined skink, tiger snake, carpet python and King’s skink. It supports 30 water bird species and 14 speciesof terrestrial reptiles, and a population of Tammar wallabies have all been isolated from mainland populations for some 6000–7000 years.Cultural values arise from the archaeology and history associated with the first settlement in Western Australia at Cliff Point by Captain JamesStirling in 1829, World War II coastal defenses, the development of HMAS Stirling Naval Base and recreational users. Indigenous mythologicalbeliefs associated with sites on the island also make a contribution to the heritage values.

Environmental & Community Impact – Part IIGreenhouse gases & energy consumption or production,Species impacts(sensitive/threatened/endangered),Environment benefits, Community/Economic impacts & benefits

Marine Environment - The marine flora and fauna of the region is typically comprised of a mixture of temperate and tropical species. Severalmarine mammal species are known to frequent the waters off Garden Island, including whales, dolphins and sea lions. Various birds, reptiles,sharks, rays, and other fish are also commonly found in the area. The seabed is primarily coarse sandy seabed with occasional macro algal-dominated limestone reef. The beach is backed by a dune system consisting of a narrow, steep and generally well vegetated fore-dune. Thewaters surrounding Garden Island are used predominantly for recreational purposes such as cruising, fishing, kayaking, surfing and divingactivities.

Risk Assessment and Management - Assessment of potential environmental impacts resulting from the Project, together with mitigation andmanagement measures to minimize harm to the environment, were reviewed by Carnegie and specialist environmental consultants inconsultation with the EPA, Defense and other key stakeholders.Overall, the Project has been assessed as having relatively low potential risk to the wider environment, with no high or unacceptable risks orpotential impacts remaining after management. The Marine and Terrestrial Environmental Management Plans identify, mitigate and manageall activities related to the Project and its potential impacts, including:• impact on seabed habitat as a result of pipeline installation• vessel safety during construction and operation of the Project• disturbance and erosion of beach and onshore dunes• increased bushfire risk during construction• accidental discharge of freshwater-based fluids into the environment• disturbance of native vegetation and native animals during construction• disturbance of Defense and public recreational activity during construction.Carnegie will be carrying out additional environmental monitoring and assessments duringall stages of the Project to ensure effective management is maintained.

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Environmental & Community Impact – Part IIIGreenhouse gases & energy consumption or production,Species impacts(sensitive/threatened/endangered),Environment benefits, Community/Economic impacts & benefits

Environmental ApprovalsCarnegie referred the marine elements of the Project to the WA Environmental ProtectionAuthority (EPA) under Part IV of the EP Act. On 10 December 2012, the EPA announced adetermined outcome of ‘Not assessed: public advice given’ noting that “potential impactsnot significant and can be managed under Marine Environmental Management Plan andthrough other government processes.”Maritime safety approvals related to the CETO units and offshore pipeline were receivedfrom the WA Department of Transport in August 2012.Carnegie referred the terrestrial elements of the Project to the Department of Defense who,on 28 November 2012, issued an Environmental Clearance Certificate for the Project.The above represent the key environmental and maritime safety approvals required for theProject. The PWEP will be managed through Carnegie’s Environmental Management Systemto ensure compliance with the above environmental approvals and Carnegie's EnvironmentalPolicy.

Environment & Community Impact – Part I, II and III slideshttp://carnegiewave.com/files/asx-announcements/2012/121210%20Env_Summary_Sheet_Rev0.pdf

NOTE: I cite the environment report of the Carnegie PWEP project to show they have a rigorousenvironment and community impact process that is similar to that of the United States.

Final Comments –Sustainable Water Source through Ocean Energy

Timing is everything. I could not have provided this information with the same level of detail ayear ago and therefore with a confidence that I feel is possible now. Some of the pilots havebeen moving forward almost a decade now and the first commercial projects sponsored byother country government agencies with private partnerships are sprouting around the globe.

When considering all the variables, I am recommending in this submission the Carnegie WaveEnergy CETO technology that marries wave energy (through a unique high-water pressureenergy conversion system with off-the-shelf hydro-electric turbine technology to reduce costs)and desalination in a compartmentalized and scalable design.

When considering the precious marine environment surrounding the City of Santa Cruz, there isa decade or more of research with Oregon State University in new buoy designs to co-existwith whale migration and a new polymer at SRI International that could make buoy energyconversion 100 times more efficient and therefore possibly with a smaller buoy footprint.

Santa Cruz has a real opportunity to be one of the first to marry energy and water security withemissions free sustainable energy and zero-emission freshwater. Water and Energy Nexus in thiscase could become a real opportunity for the Santa Cruz Community. The research anddevelopment costs in ocean energy have been accomplished through projects around theworld for the last decade. These solutions are scalable and possibly at lower costs thanprojected in earlier Santa Cruz EIR and Analysis reports.