Carnegie Clean Energy (ASX:CCE) started the development of a six-megawatt CETO wave energy array in Europe and signed a memorandum of understanding with the Biscay Marine Energy Platform (BiMEP) as the potential site of the project, according to a Monday filing with the Australian bourse.

The array would include six of the one-megawatt commercial-scale CETO units, connected to the grid through BiMEP's offshore cable and grid connection, the filing said.

The MoU will initially be in effect for five years and can be extended through mutual agreement, per the filing.

Shares rose nearly 2% in morning trade Monday.