Carnegie Clean Energy has been told to prove it can fund its major wave power project.

Serious questions have been asked about the company’s ability to fund Australia's first commercial-scale wave power farm, and the WA Government has given it 90 days to prove that it can fund its $26 million share of the $53 million Albany wave project.

The company posted a $64 million loss last financial year and was forced to write down the value of its most valuable asset, its own CETO wave energy technology, by $35 million.

The company has relied on government grants and tax concessions, including $25 million in R&D tax refunds between 2013-14 and 2017-18, and almost $29 million in Australian Renewable Energy Agency (ARENA) funding.

It has also received more than $10 million in Low Emissions Energy Development funding and $15.75 million for the Albany project from the WA Government.

Premier Mark McGowan has previously promised the project will create “hundreds of jobs”, and transform the town into a world-renowned renewable energy hub.