ASX microcap Carnegie Clean Energy Ltd [ASX:CEE] shared some big news this morning.
The tiny renewables company has teamed up with Hewlett Packard (HP). Aiming to work together to build a wave energy controller that learns through reinforcement. All of which will be handled via cutting edge AI.
It’s a bold direction for the company, but will it pay dividends for shareholders?
Tech-led energy future
With HP’s help, Carnegie is hoping to build a wave energy project. Using the force of the ocean to power local grids.
However, in order to get such technology to work reliably, Carnegie needs to constantly monitor waves. Identifying and harnessing their power at different intervals.
That’s where HP comes in, Carnegie state:
‘While the intelligent controller currently under development has to optimise the device’s response for every wave (using ML models within the optimisation), the RL controller has the ability to directly learn and apply the optimum response to predicted waves, during operations.
‘The RL controller, which comes pre-loaded with a simple control scheme, explores away from this reference using the concept of reward to identify and learn good control actions.’
In other words, by using this technology Carnegie is hoping to improve the automation of this process. Making it far easier to not only harness the wave power, but also predict and adapt to it.
Needless to say, it will likely be an incredibly complex but rewarding venture. One that both Carnegie and HP could benefit from.
And for that reason, investors could have good cause to get excited.
What’s next for the CEE share price?
Now, while today’s news is fascinating, it has done little to excite the market.
The CEE share price opened marginally higher this morning before falling back down to their previous close. A sign perhaps as to just how small this company is, but also how illiquid it is.
In this regard, investors may have to wait for more concrete results from this partnership for any returns. A scenario that may take some time, if it happens at all.
Broadly speaking though, it is very much on trend. With a huge surge in interest and investment in the renewable scene lately. Something that every investor needs to be aware of.
Because while Carnegie’s shares may not be moving, other companies certainly are.
You can learn more about this energy market disruption in our latest report, right here.
For Money Morning