NORTH Fremantle's Carnegie Wave Energy has signed the power produced by its wave power facility over to the Department of Defence.
Prime Minister Julia Gillard announced the energy supply agreement when she visited Carnegie today.
The project will create 25 jobs within Carnegie and 100 more in manufacturing and construction by making use of the powerful swell off the back of Garden Island to help power the biggest naval base in Australia.
She said the carbon price would provide an incentive for businesses to invest in more projects like Carnegie Wave Energy.
Construction of the wave power facility at HMAS Stirling is expected to start later this year, with wave-driven power expected to be supplied before the end of next year.
It will provide HMAS Stirling with up to 1.25 megawatts of power per day, expected to save about 2.6 million kilograms of carbon emissions over five years.