Re: Carnegie Commercial Scale CETO 3 Installed

20 April 2011

Renewable Energy Holdings plc

("REH" or the "Company")

Re: Carnegie Commercial Scale CETO 3 Installed and Operating

Renewable Energy Holdings plc (AIM: REH), the AIM quoted investor in, and operator of, European wind power, notes an announcement released on 20 April 2011 by Carnegie Wave Energy Limited, in which REH holds 232,600,000 fully paid ordinary shares, representing 27.0% of the entire issued share capital.

"20 April 2011

Commercial Scale CETO 3 Installed and Operating

·; Commercial scale CETO unit successfully installed and operating and producing power off Garden Island

·; Performance data being collected and transmitted to West Perth control room for analysis

·; Performance meeting all expectations with further results to follow

Wave energy developer Carnegie Wave Energy (ASX: CWE) is pleased to advise that its commercial scale CETO 3 unit has been successfully installed offshore from Garden Island in Western Australia and is producing power in lines with expectations.

Installation of the CETO system has taken place offshore from Australia's largest naval base on Garden Island in Western Australia. The final step, the connection of the buoyant actuator ('BA') to the balance of the CETO system, occurred over the weekend. The system was immediately energised and is producing hydraulic power exactly as expected.

Carnegie's Managing Director Dr Michael Ottaviano said,

"This is the most significant milestone in Carnegie's history and follows more than 5 years of in-ocean testing of scale CETO prototypes. It now allows us to plan our project pipeline roll out with confidence. Carnegie's CETO technology was already the only wave technology to have produced desalinated water; it is now the only commercial scale wave unit ever deployed and operated in Australia and the Southern Hemisphere."

"I'd like to thank all of Carnegie's team which has put in a tremendous effort over the last 18 months and, in particular, the last 3 months. Their effort, along with our key contractors, has allowed us to achieve this major milestone safely and effectively. Additionally, we're grateful for the support of the State Government of Western Australia through the LEED grant program and the Australian Department of Defence." Dr Ottaviano said.

The CETO unit's data acquisition and remote control system is also operating to design and allows the collection and transmission of performance data and complete system control in real-time from the CETO control centre in West Perth. Carnegie engineers are manning the centre around the clock to conduct power optimisation trials and monitor performance as well as carrying out detailed data analysis.

Carnegie expects to have analysed performance data within 6 to 8 weeks and will retrieve the CETO unit on completion of the primary testing period for visual inspection.

In parallel with manufacture, design and installation activities, Carnegie has been developing the design of a small scale, grid-connected 2 to 5MW demonstration project. A finalised conceptual design is now complete and work on the detailed design will commence shortly.

Further images and video of the installation and operation can be found on Carnegie's website www.carnegiewave.com

About the Perth Wave Energy Project

Carnegie's Perth Wave Energy Project is located offshore 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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