Announcement PDF We harness ocean energy to make the world more sustainable ANNUAL 2025 REPORT Carnegie Clean Energy Annual Report 2025 2 Carnegie Clean Energy Annual Report 2025 2 Board of Directors Anthony Shields Non-Executive Chairman Michael Fitzpatrick Non-Executive Director Grant Mooney Non-Executive Director Chief Executive Officer Jonathan Fiévez Company Secretary Grant Mooney Registered Office Address 21 North Mole Drive North Fremantle WA 6159 Postal Address PO Box 39 North Fremantle WA 6159 Telephone (08) 6168 8400 Share Registry XCEND Level 2, 477 Pitt Street Haymarket NSW 2000 +61 (02) 8591 8509 Auditors HLB Mann Judd Level 4, 130 Stirling Street Perth WA 600 Website: www.carnegiece.com Corporate Directory ASX Code: CCE OTCQB: CWGYF WKN: A2DJFY CETO Wave Energy Ireland 4th Floor, North Block, Rockfield Central Dundrum DN 16, W7W3 Ireland Carnegie Technologies Spain Alameda de Recalde 36, 8a Planta 48009, Bilbao, Bizkaia, España Carnegie Clean Energy LLC 1500 Michigan Street San Francisco, CA 94124, United States CETO Wave Energy UK 5 South Gyle Crescent Lane Edinburgh EH12 9EG, Scotland Subsidiaries Carnegie Clean Energy Annual Report 2025 3 Joining the clean energy conversation is now easier than ever. Social Media Information highlighted from share registry details. Additional Information Carnegie Clean Energy Annual Report 2024 3 Table of Contents 2025 has been a year of transformation. The wave energy industry is demonstrating a clear path to commercial viability. A unique asset delivering revenue to Carnegie from solar generation. Carnegie is a technology developer leading the wave energy sector. Proudly supporting several key SDGs. Delivering our CETO and MoorPower wave energy technologies to the world. Chairman’s Letter Global Context and Opportunity Garden Island Microgrid Financial Report 04 06 10 22 25 05 09 12 23 Company Overview Our Products UN Sustainable Development Goals Carnegie Clean Energy Annual Report 2025 4 Letter From the Chairman 2025 The world has never been more ready for wave energy solutions than it is now. Europe remains the global leader in ocean energy investment, with more than €60 million in private funding announced over the past two years. The United States has also strengthened its position in the race, committing over $250 million to ocean energy development and innovation in 2024. The wave energy industry is expanding quickly, and its role in a sustainable energy mix is gaining recognition. With our innovative technology, strong partnerships and dedicated team, Carnegie is well-positioned to capitalise on this growing momentum. My sincere gratitude goes out to our shareholders for their continued support. Your investment in Carnegie is an investment in an Australian technology contributing to a more sustainable world. I also wish to thank the Board of Directors, the management team, and every employee for their efforts over the last year. Keep following our journey as we deliver Australian technology to the world and harness ocean energy to make the world more sustainable. Anthony Shields Non-Executive Chairman AShields It is with great pleasure that I present the Annual Report for Carnegie for the financial year ending 30 June 2025. This period has been transformative, marked by a series of achievements that have seen Carnegie grow from strength to strength. As the world urgently seeks cleaner energy sources, Carnegie is ready to fill this need. This year’s success is a direct result of our team’s dedication and commitment. The ACHIEVE Programme is at an exciting phase, with our team actively bringing CETO’s sub- systems together. We’ve established a local European supply chain and have formed a new partnership with SKF, a global precision manufacturer, to build and test the Power Take- Off (PTO) units. This strategic development of our supply chain is a fundamental step on our path to commercialisation. Beyond ACHIEVE, we are also actively progressing partnerships and future projects aligned with our business model. We have commenced development of a new 6MW CETO array project and have an MOU in place with BiMEP to host the array. This project is progressing in parallel with the ACHIEVE Programme. Our expansion has also reached another corner of the globe, with a MOU signed with Chugachmiut to explore projects in Southcentral Alaska; bringing our wave energy technology to remote communities in the US. In addition to CETO advancements, our MoorPower technology is moving closer to market. Following the success of the MoorPower Scaled Demonstrator in 2024, we have secured Blue Economy CRC funding to commence design of the first MoorPower Commercial Pilot Project. Working alongside industry partners like Huon Aquaculture, we’re developing the design of a full-scale commercial system, the next step towards deployment on an operational aquaculture feed barge. Carnegie Clean Energy Annual Report 2025 5 Powering Remote Alaska MoorPower Commercial Pilot 6MW CETO Array in Europe ACHIEVE Programme CETO Wave Energy Ireland Limited Carnegie Technologies Spain S.L. CETO Wave Energy UK Limited Carnegie Clean Energy Limited Carnegie Clean Energy LLC Company Overview Carnegie is a technology developer leading the wave energy sector with a portfolio of cutting-edge products. Our CETO and MoorPower systems harness the immense power of the ocean to generate clean, reliable electricity for a wide range of applications, from large utility grids to remote communities and offshore aquaculture operations. Our extensive experience in the wave energy sector, from initial modelling and simulations to large-scale commercial prototypes, positions Carnegie as a leader in the global transition to net-zero. Driven by a shared passion for sustainability and renewable energy, our world-class team of engineers, scientists, and professionals is dedicated to harnessing the ocean’s energy. This commitment is evident in our growing global presence, with Carnegie now operating through subsidiaries across Australia, Europe and North America, and listed on the ASX (CCE), US OTCQB Market (CWGYF), and the Borse Frankfurt (WKN: A2DJFY). Carnegie’s wave energy innovations are being advanced through key projects, including the ACHIEVE Programme in the Basque Country, which is set to validate our CETO technology. We are also developing the MoorPower project to decarbonise the offshore aquaculture sector in Australia, pursuing a 6 MW CETO array project in Europe, and collaborating on wave energy solutions for remote Alaskan communities. These efforts are designed to attract further investment and pave the way for widespread commercial deployment. Carnegie Clean Energy Annual Report 2025 6 Global Context and Opportunity Why Wave Energy? Wave energy’s unique characteristics provide an opportunity to play a key role in the global clean energy transition. The wave energy industry is demonstrating a clear path to commercial viability, driven by targeted deployments, significant investment and an increasing focus on the unique benefits offered by wave energy generation. With expanding renewable energy portfolio requirements and a global push for net-zero targets, the time is now for wave energy. Waves are generated by large-scale weather systems and are more predictable than traditional renewable energy sources, helping to provide a more stable foundation for the grid. This makes wave energy an ideal complement to other renewables, such as solar and wind. Studies are demonstrating that a diverse renewable energy portfolio that includes wave energy delivers a more reliable and resilient energy system at lower cost. We harness ocean energy to make the world more sustainable Carnegie Clean Energy Annual Report 2025 7 The wave energy sector is experiencing a surge in activity, with a focus on both grid-connected projects and tailored applications. Recent reports indicate that private and public investment is accelerating as technologies mature and deployments move towards pre-commercial scale. Carnegie continues to be a leader in the wave energy industry with a portfolio of technologies that meet the requirements of different sectors. Our CETO device is ideal for large utility scale industry applications. It operates fully submerged, offering a key advantage with its minimal visual impact compared to other renewable technologies. Meanwhile, our MoorPower technology provides a clear and immediate pathway for wave energy to decarbonise offshore applications like aquaculture and naval operations, reducing reliance on fossil fuels. The Company is advancing the CETO technology through the ACHIEVE Programme which will deploy a scaled CETO unit at the Biscay Marine Energy Platform (BiMEP). MoorPower is also moving forward via the Commercial Pilot Preliminary Design Project, funded by the Blue Economy Cooperative Research Centre. The promising development of these technologies for their target applications is positioning Carnegie to make a significant contribution to the future of wave energy. World map of mean wave power density and mean wave direction (image credit: Ocean Wave Energy in Australia, 2024) Carnegie Clean Energy Annual Report 2025 8 Wave Energy’s Global Momentum Backed by strong government support, ocean energy is on an upward growth trajectory. The commitment of global governments through strategic visions and policies is helping to attract private investment, which in turn will propel the industry forward. This expansion is set to revitalise coastal communities and create new job opportunities. 106 GWh Generated 670 MW in Europe by 2030 400,000 Jobs by 2050 100GW Capacity €60m private investment 2.9 GW globally by 2030 €53bn / year by 2050 Cumulative electricity production from ocean energy in Europe reached 106 GWh in 2024 (OEE, 2024) European countries foresee the deployment of 670 MW of ocean energy by 2030 (ETIP Ocean) Ocean energy can create 400,000 jobs by 2050 revitalising coastal communities that historically served shipbuilding, fishing and the oil & gas sector (OEE, 2024) Ocean energy can deliver 100 GW of capacity by 2050 – equivalent to 10% of Europe’s electricity consumption today (ETIP Ocean) Publicly announced private investments in the sector since 2023 (OEE, 2024) The world could see deployment of 2.9 GW of ocean energy in a high growth scenario (ETIP Ocean) The European Commission estimates that ocean energy can contribute up to a cumulative €5.8bn in Gross Value Added between now and 2030 (ETIP Ocean) Carnegie Clean Energy Annual Report 2025 9 Scan the QR code to connect with us on your favourite social media channels, subscribe to our newsletter, and join the conversation. Social Media Stay Connected with Carnegie Joining the clean energy conversation is now easier than ever. Carnegie’s social media channels are your place to find the latest updates on our projects and discover news from across the wave energy industry. We are proud to see our online community grow and appreciate the support and engagement from all who have connected with us on our journey. Learn about our impactful projects, discover new renewable technologies, and be inspired by the positive change we are creating together. You can stay updated with the latest advancements by following us on social media or signing up for our email newsletter. carnegieclean Liked by username, username and 55 others @username looking good! See the 1,234 comments 1h ours ago Carnegie Clean Energy Annual Report 2025 10 United Nations Sustainable Development Goals Carnegie supports the United Nations Sustainable Development Goals (SDGs) to create a better and more sustainable future for all. As we reflect on the past year, we are proud to share several key SDGs that resonate with our mission and vision. Carnegie Clean Energy Annual Report 2025 11 SDG 6: Clean Water and Sanitation Ocean energy can power desalination to transform seawater into clean water, ensuring access to clean water for coastal communities. SDG 7: Affordable and Clean Energy Carnegie remains at the forefront of the clean energy revolution. We will continue to develop affordable, sustainable wave energy solutions that reduce carbon emissions. SDG 8: Decent Work and Economic Growth Our commitment to innovation and sustainable practices is not only contributing to environmental preservation, but also creating employment opportunities and driving economic growth in the regions we operate. We believe that a green economy can be a source of prosperity for all. SDG 9: Industry, Innovation, and Infrastructure Carnegie is driving innovation in wave energy infrastructure, leading to advancements that will benefit industries, economies, and societies globally. We are committed to technological excellence and sustainable development. SDG 11: Sustainable Cities and Communities Our work is not only about technology but also about transforming communities into sustainable, resilient hubs along our coastlines. By providing clean energy solutions and infrastructure, we are empowering coastal communities to thrive in a rapidly changing world. In the coming year, Carnegie remains dedicated to our mission of delivering clean, sustainable wave energy solutions and fostering partnerships that will support progress against these Sustainable Development Goals. SDG 12: Responsible Consumption and Production We recognise the importance of responsible consumption and production. By promoting the use of clean energy, we are contributing to a more sustainable future, where resources are used efficiently and sustainably. SDG 13: Climate Action The fight against climate change is a global priority. We continue to play our part by harnessing the power of the oceans to generate clean, renewable energy. SDG 14: Life Below Water Through innovation and responsible ocean energy solutions, we are committed to safeguarding the rich biodiversity of our oceans. SDG 17: Partnerships for the Goals None of these achievements would be possible without the strong partnerships we have forged with governments, organisations, and communities around the world. Together, we are driving towards a sustainable and prosperous future for all. Carnegie Clean Energy Annual Report 2025 12 CETO® Technology Named after a Greek sea goddess, CETO is Carnegie’s core wave energy converter (WEC) technology. This fully submerged, point absorber WEC operates beneath the ocean’s surface, converting the consistent and predictable orbital motion of waves into clean, grid-ready electricity. The CETO technology uses three power take-off (PTO) modules within each unit to transform wave motion into electricity. Advanced control systems and artificial intelligence (AI), developed in collaboration with our partner Hewlett Packard Enterprise, are used to optimise performance and increase the energy captured from each wave. CETO’s unique design minimises visual impact and enhances its resilience to extreme weather conditions. The CETO buoys can be lowered to a safer depth to survive extreme sea conditions and storms, while continuing to operate and generate electricity in all conditions. CETO is a versatile and scalable solution with a broad range of applications, from providing energy independence to remote communities and islands to contributing to large-scale utility grids. As the industry matures, Carnegie anticipates that the market for wave energy will continue to expand, following a similar growth trajectory to the solar PV and offshore wind sectors. Carnegie is currently validating the CETO technology through the ACHIEVE Programme, which includes the design, manufacture, deployment and operation of a scaled CETO prototype in Europe. The Company is also actively involved in several R&D projects to drive long-term improvements and cost reductions, delivering continuous improvement of our CETO technology with advanced research efforts. Our Products Learn more about CETO CETO Advantages Maintainable Easily towed to port for upgrades and maintenance Tested Over 15 years of onshore, tank and tens of thousands of hours of in-ocean testing Minimal Visual Impact Fully submerged and invisible from shore Security Provides emissions free sustainable energy and water security to countries & islands Clean Minimal environmental impact, co-exists with marine life Scalable Modular array design Consistent, Predictable and Complementary Provides grid benefits when deployed in concert with other renewables Desalination Zero-emission freshwater co-production allows pseudo energy storage Flexible Operates in variety of water depths, swell directions, tides & seafloor conditions Storm Survivability Fully submerged and dives deeper under extreme wave conditions Carnegie Clean Energy Annual Report 2025 13 ACHIEVE Programme: Design, Manufacture, Deployment and Operation of a CETO Prototype Carnegie and its international subsidiaries, CETO Wave Energy Ireland and Carnegie Technologies Spain, are currently advancing the CETO wave energy technology toward commercial readiness through the ACHIEVE Programme. The ACHIEVE Programme will deliver the first CETO unit deployed in Europe, specifically in the Basque Country. The Programme has substantial financial recognition and industry support, securing the top-ranked contract via the EuropeWave Pre-Commercial Procurement (PCP) Programme, along with additional grants from the Basque Energy Agency (Ente Vasco de la Energía) and the Spanish Government’s RENMARINAS DEMOS Program. Deployment Site: BiMEP (Biscay Marine Energy Platform), dedicated testing site for offshore renewables. Bilbao Spain Portugal CETO Four 13.2 kV/5MW subsea cables Offshore substation fitted with 25 MVA 13.2/132 kV transformers 0 0.5 1 km Armintza Carnegie Clean Energy Annual Report 2025 14 MINISTERIO PARA LA TRANSICIÓN ECOLÓGICA Y EL RETO DEMOGRÁFICO EuropeWave PCP Programme: €3.75m ▷ CETO Wave Energy Ireland ▷ Focus: Accelerating wave energy development ▷ Funds a scaled CETO prototype deployment The EuropeWave project has received funding from the European Union’s Horizon 2020 Research and Innovation Programme under grant agreement No 883751. RENMARINAS DEMOS Program: €1.2m ▷ Carnegie Technologies Spain ▷ Focus: Advancing marine renewables in Spain ▷ Enhances CETO deployment Basque Energy Agency (EVE) Grant: €2.1m ▷ Carnegie Technologies Spain ▷ Focus: Supporting local involvement, technological advancements ▷ Targets specific CETO components Overall Funding: €7.05m JULIA F. CHOZAS CONSULTING ENGINEER CETO WAVE ENERGY IRELAND Project partners and funding support for the ACHIEVE Programme Technologies Spain Technologies Spain Carnegie Clean Energy Annual Report 2025 15 ACHIEVE Programme Activities Over the last year, the ACHIEVE Programme has delivered significant work in design, fabrication, manufacturing, site preparation, and sub-system testing, all supported by a developing European supply chain. The team successfully completed subcomponent testing for the transformer, electrical, and control systems at the SEI facility in the Basque Country. These tests validate the functionality and integration of the electrical system, as well as the control system’s ability to communicate with and control system functions in advance of deployment. Carnegie Clean Energy Annual Report 2025 16 Carnegie signed a two-year contract with BiMEP for the installation and testing of CETO at our preferred berth location. This agreement provides Carnegie with access to BiMEP’s offshore and onshore infrastructure, including mooring areas and electrical connections, which will allow CETO to supply electricity to the grid. Pre-deployment activities began at the BiMEP site to prepare the berth for CETO’s arrival. This work has involved BiMEP removing old equipment and deploying new Sofar Ocean wave buoys to gather valuable real-time data on site conditions. Fabrication and manufacturing of CETO components has been the key activity undertaken during the year, with components and sub-systems being procured from our growing European supply chain. As part of developing the CETO supply chain, Carnegie has entered a strategic partnership with SKF, a global leader in precision manufacturing, to collaborate on the CETO power take-off (PTO) system. This partnership expands on SKF’s experience in other EU-funded ocean energy projects. Following completion of fabrication and assembly, a series of pre-deployment sub-system and full system tests will be undertaken onshore before deployment. SKF will deliver the pre-deployment testing of the PTO and electrical modules at their Schweinfurt facility. Then, full integration, wet testing and deployment will occur in the Basque Country. During the year, Carnegie unlocked milestone payments for the ACHIEVE Programme totalling €2.1m (AUD $3.6m). This includes €591k (approx. $980k AUD) from the EuropeWave PCP Programme, €1.2m (approx. $2.1m AUD) from RENMARINAS Demos and €318k (approx. $545k AUD) from Ente Vasco de la Energia (EVE). These milestone payments have been received following delivery of project milestones including in relation to design, procurement and testing of key equipment. By leveraging SKF’s established expertise and manufacturing capabilities, we are ensuring CETO maintains its position as a leading wave energy solution for the long term. Carnegie Clean Energy Annual Report 2025 17 Additional Research and Development Activities Alongside the ACHIEVE Programme, Carnegie is actively involved in several international research and development initiatives and partnerships. These collaborations enhance our CETO and MoorPower technologies and deliver valuable learnings that can reduce cost and improve performance, driving our cost reduction pathway. By leveraging external funding and expertise, these learnings are delivered at low cost to our shareholders. It enables the team to focus on near term technology commercialisation opportunities while still driving innovations that will feed into our medium and long term commercialisation pathway. These projects also extend our expertise, reduce technical and financial risks, and create new partnerships with leaders around the world. New Project Commencing: The COIN Project Subsequent to the financial year end, Carnegie was named the key technology partner in the Control-Oriented Innovations for future wave energy farms (COIN) Project. This €4 million project, which is fully funded by the European Commission’s Horizon Europe Programme, aims to enhance the reliability, survivability, and sustainability of wave energy farms. The project’s innovations are designed to reduce the levelised cost of energy (LCOE) for wave energy by 30%. Carnegie’s CETO technology will be the reference wave energy converter used for testing and validating the innovations developed. Carnegie’s involvement is fully funded, with the company set to be paid €383k (approx. $684k AUD) for its work, which will directly benefit the design and commercialisation pathway of CETO at no cost to the company. Carnegie Clean Energy Annual Report 2025 18 Ongoing Projects Carnegie continues to participate in other ongoing R&D projects focused on advancing energy capture and reducing LCOE. The MEGA Wave PTO Project is focused on developing a modular, high-torque generator for power take-off (PTO) systems in wave energy converters. The goal is to deliver significant efficiency gains and a 30-40% reduction in the cost of energy. WECHULL+ is developing sustainable and environmentally friendly concrete materials and structures for offshore renewable energy technologies, providing a durable and cost- effective alternative to traditional steel. Carnegie’s collaboration with Hewlett Packard Enterprise (HPE), which began in 2020, has been extended for another two years, running until 2026. This partnership focuses on applying reinforcement learning-based artificial intelligence (AI) to CETO’s control systems to optimise power production and efficiency. Expanding Global Reach and Commercialisation Carnegie continues to actively pursue opportunities for future CETO and MoorPower projects worldwide. During the year, Carnegie commenced the development of a 6 MW CETO array project in Europe, signing a Memorandum of Understanding (MOU) with the Biscay Marine Energy Platform (BiMEP) as the potential site. This represents a key next step in CETO’s commercialisation, leveraging the local team and knowledge gained through the ACHIEVE Programme to expand to the first commercial scale array of CETO in Europe. Potential Alaskan opportunities are being investigated through an MOU with Chugachmiut, a consortium of Native tribes in Southcentral Alaska. The partnership will explore the feasibility of deploying CETO projects to provide clean, affordable, and reliable electricity to local indigenous communities. International opportunities for application of the MoorPower technology are also being investigated for aquaculture and other offshore industries. Carnegie Clean Energy Annual Report 2025 19 MoorPower® Technology As the aquaculture sector expands its operations offshore, the demand for clean and reliable energy becomes increasingly critical. The reliance on diesel generators for energy-intensive offshore activities, such as feed barges, brings with it a host of challenges including high costs, environmental risks, and carbon emissions. The issue extends beyond aquaculture to encompass various moored vessels across the blue economy. To respond to these challenges, Carnegie developed the MoorPower technology and has tested a prototype through collaborations with the Blue Economy Cooperative Research Centre (BECRC) and aquaculture industry partners. Leveraging the core principles of the CETO technology and the company’s extensive expertise, MoorPower provides a sustainable alternative to diesel in these offshore environments. MoorPower addresses a variety of challenges associated with offshore operations in areas without shore-based power. The reliance on diesel and other fossil fuels creates logistical hurdles related to fuel transportation and storage, especially in unpredictable and harsh weather conditions. The use of these fuels also carries significant environmental risks, such as potential spills, noise pollution and air pollution. MoorPower is set to transform the way energy is harnessed offshore, with its initial target market being aquaculture barges and vessels that require electrical power while operating on offshore locations, followed by a broader global market opportunity for offshore energy demand applications. Our Products Learn more about MoorPower Graphical representation of MoorPower installed on an aquaculture feed barge. Carnegie Clean Energy Annual Report 2025 20 MoorPower Scaled Demonstrator Project Carnegie’s MoorPower technology was successfully demonstrated at our offshore test site in North Fremantle. The Scaled Demonstrator was deployed in early 2024 as part of a $3.4 million project funded by the Blue Economy CRC. The deployment provided a valuable opportunity for potential customers and partners to see the technology in action. They were able to observe live data being streamed to our facility and gain key insights from the information collected. The Demonstrator proved the system’s functional performance and was successfully validated against Carnegie’s numerical models. Over 2,000 hours of operational data were collected and analysed. The Demonstrator’s performance validated the potential for a commercial MoorPower system to produce at least 50% of the annual energy demand for a working aquaculture barge, an initial target on our pathway towards fully supplying energy demand. The Demonstrator was decommissioned in early 2025 in preparation for the next stage of commercialisation for MoorPower, which commenced mid 2025 with the announcement of the MoorPower Commercial Pilot: Preliminary Design Project. Logistical Efficiency & Safety By eliminating or reducing the need for diesel fuel, MoorPower removes the logistical and safety risks of transporting fuel to offshore locations, especially in challenging weather conditions. Clean and Reliable Energy MoorPower offers a sustainable alternative to conventional diesel generators, typically used for energy-intensive offshore operations like aquaculture feed barges. Industry Driven Developed with stakeholders in the Blue Economy CRC, including key aquaculture companies Huon and Tassal, ensuring it meets industry requirements and challenges. Proven Design The MoorPower Scaled Demonstrator Project successfully validated the technology’s functional design and numerical models through offshore operations in Western Australia, paving the way for commercial-scale deployment. Decarbonisation MoorPower significantly reduces carbon emissions associated with offshore operations by replacing diesel generation. Versatile Application MoorPower can be deployed on a range of moored vessels and is designed to integrate with other offshore renewable energy systems, including hydrogen and batteries. Operational Integration The system is specifically designed to integrate into moored vessels, using the moorings to capture energy from waves. MoorPower Technology Carnegie Clean Energy Annual Report 2025 21 MoorPower Commercial Pilot: Preliminary Design Project Following the successful validation of the MoorPower Scaled Demonstrator, Carnegie launched the next step in MoorPower’s commercialisation roadmap with the MoorPower Commercial Pilot Preliminary Design Project. The project is a critical step in bridging the gap between the Demonstrator and the first full-scale commercial application of the MoorPower technology. Carnegie employee pictured with Huon’s feed barge, a potential host for future MoorPower Commercial scale deployments. The project secured funding from the Blue Economy Cooperative Research Centre (BECRC) who awarded $335,020 to support preliminary design of a MoorPower system that could be deploye