Re: Carnegie In-Ocean Buoyant Actuator Testing

16 December 2010

Renewable Energy Holdings plc

("REH" or the "Company")

Re: Carnegie In-Ocean Buoyant Actuator Testing

Please find below an announcement released on 16 December 2010 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:

"16th December 2010

In-Ocean Buoyant Actuator Testing

Carnegie Wave Energy Limited (ASX:CWE) advises that the commercial scale Buoyant Actuator (BA) has been transported to the Australian Marine Complex (AMC) at Henderson, south of Perth, and commenced its in-ocean testing program.

The aim of the testing is to verify key aspects of the BA unit including its dry weight, buoyancy and hydrodynamic motion performance. Ballasting and deballasting tests will be carried out involving varying the buoyancy of the BA inocean. The results of this test will be used to inform current installation planning at the Garden Island site. In addition to these factory acceptance tests, the BA will be fitted with an inertial measurement unit and subjected to a 'decay' test. This involves destabilising the BA in the ocean and recording its motion as it returns to a normal position in the water. This data will provide important information to be used for computational modelling of the BA's behaviour at sea.

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 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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