The Department of Defence has agreed to purchase all of the electricity produced by Carnegie Wave Energy's project off Garden Island near Freemantle for the HMAS Stirling Naval Base.

Carnegie’s managing director and chief executive Dr Michael Ottaviano said it was significant for the Royal Australian Navy to be supporting the development of emerging clean technologies like the company’s CETO technology through the purchase of electricity.

Carnegie said it had been working with the Department of Defence on the project since  December 2008 and, in that time, has developed a demonstration project in the ocean off Garden Island.

Power is expected to be supplied to the naval base by the end of next year.