Carnegie - Ireland formal funding agreement

7 January 2011

Renewable Energy Holdings plc

("REH" or the "Company")

Re: Carnegie - Ireland formal funding agreement and appointment of RPS Consulting Engineers

Please find below an announcement released on 7 January 2011 by Carnegie Wave Energy Limited, in which REH holds 232,600,000 fully paid ordinary shares, representing 29.06% of the entire issued share capital:

"7th January 2011

Ireland formal funding agreement and appointment of RPS Consulting Engineers

·; Funding agreement signed with Irish Government and project commenced

·; RPS Consulting Engineers appointed to conduct site evaluation and conceptual design study

Wave energy developer Carnegie Wave Energy Limited (ASX:CWE) is pleased to advise that it has now signed the formal funding agreement with the Irish Government's Sustainable Energy Association (SEAI) for a EU150,000 project to evaluate potential CETO wave sites in Ireland and develop a site specific conceptual design. The project is 50% funded by the SEAI and 50% by Carnegie and forms the first phase of detailed design for a potential 5MW commercial demonstration project in Irish waters. The project will be managed through Carnegie's Irish subsidiary, CETO Wave Energy Ireland Limited (www.cweireland.ie).

The project has now commenced with the appointment of Ireland-based engineering specialists RPS Consulting Engineers to undertake the study. RPS Consulting Engineers, formerly Kirk McClure Morton, has a proven track record in engineering and environmental services in marine construction and the renewable sector, including a number of wave and tidal development projects in Europe and North America.

Carnegie's Dublin-based Executive Director of European Business Development, Kieran O'Brien said:

"Reaching formal agreement with SEAI for project funding allows us to begin detailed site assessment and develop the conceptual design of a 5MW commercial demonstration project in Ireland. RPS Consulting Engineers have a proven track record in innovative and applied marine engineering and project development, which adds value to the commercial development of CETO."

To support the development of ocean energy, the Irish Government is providing dedicated grant funding to support research, development and deployment of ocean energy and has established a feed-in tariff of €220 per megawatt hour for ocean energy. Ireland has also set a National target to produce 33 percent of its energy from renewable sources by 2020 including specific ocean energy targets of 500MW by 2020.

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"

Ends

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