Carnegie Commercial Scale Unit Activities Update

17 January 2011

Renewable Energy Holdings plc

("REH" or the "Company")

Re: Carnegie Commercial Scale Unit Activities Update

Please find below an announcement released on 17 January 2011 by Carnegie Wave Energy Limited, in which REH holds 232,600,000 fully paid ordinary shares, representing 27.08% of the entire issued share capital:

"17th January 2011

Commercial Scale Unit Activities Update

·; BA in-water testing completed successfully

·; Delivery of onshore hydraulic system test rig

·; Delivery of communications buoy

Wave energy developer Carnegie Wave Energy (ASX: CWE) is pleased to provide an update on the latest activities in relation to its commercial scale CETO wave unit test program.

The in-ocean testing of the commercial scale CETO unit's buoyant actuator (BA) has been successfully completed at the Australian Marine Complex south of Perth, Western Australia. The in-ocean testing successfully verified key aspects of the BA unit including its dry weight, buoyancy, ballasting and hydrodynamic motion performance. The BA is now undergoing preparation for mobilisation ahead of offshore CETO system deployment and testing at Garden Island.

Carnegie has now also taken delivery of the onshore pump and hydraulic system test rig. The rig, located at Carnegie's Fremantle facility, cradles the commercial scale CETO pump horizontally where it is stroked by a hydraulic actuator powered by a 400kW hydraulic power unit. The pump has been fitted into the rig and the rig will now undergo commissioning. Testing will commence following the completion of commissioning and the delivery of the hydraulic energy management module due in the next 2 to 3 weeks.

The test program involves stroking the pump under various loads and velocities using sinusoidal profiles that simulate wave conditions. Instrumentation mounted on the pump and hydraulic module will record the system performance during both onshore and offshore testing. Additionally, the offshore instrumentation system that controls the CETO3 unit and relays data to shore is complete with delivery to Carnegie of the communications buoy and associated mooring system. The buoy houses the transmitters that send the collected data back to shore via 3G infrastructure. Testing of this equipment is underway onshore with offshore deployment of the buoy expected in the next 2 to 3 weeks.

Carnegie's Perth Wave Energy Project is located offshore Fremantle in the ocean between Garden Island and Five Fathom Bank at a depth of approximately 25 metres. Upon completion, it will be Australia's first commercial scale wave energy project.

The primary aim of the project is to demonstrate the CETO technology in commercial operation. The project site could also be a base for a desalination pilot project utilizing Carnegie's CETO technology.

About CETO

The CETO system distinguishes itself from other wave energy devices by operating out of sight and being anchored to the ocean floor. An array of submerged buoys is tethered to seabed pump units. The buoys move in harmony with the motion of the passing waves, driving the pumps which in turn pressurise water that is delivered ashore via a pipeline.

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 greenhouse gas emitting electrically driven pumps usually required for such plants.

CETO Technology characteristics include:

·; CETO converts wave energy into zero-emission electricity and desalinated water

·; CETO is environmentally friendly, has no visual impact and attracts marine life

·; CETO is fully submerged in deep water away from popular surf breaks

·;

About Carnegie

Carnegie Wave Energy Limited is an Australian, ASX-listed (CWE) wave energy technology developer. Carnegie is the owner and developer of the CETO Wave Energy Technology intellectual property."

Ends

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