• Strike has been awarded 85 MW of Certified Reserve Capacity in the South West
Interconnected System (in WA) by AEMO for its proposed South Erregulla peaking
gas power station for capacity year 2026.
• The award marks a significant de-risking event for the project as it proceeds
towards a Final Investment Decision in November 2024.
Strike Energy Limited is pleased to announce it has been awarded Certified
Reserve Capacity (CRC) by the Australian Energy Market Operator (AEMO) in the South West
Interconnected System (in Western Australia) for its proposed fully integrated 85 MW peaking
gas power station, as part of the development of the South Erregulla gas field in Production
License L24 within the Perth Basin (100% net to STX).
This CRC award is a significant milestone for Strike’s peaking gas power station project as it
prepares for the taking of a Final Investment Decision in November 2024 following the receipt
of the applied for minimum Network Access Quantity (NAQ) in October 2024.
AEMO are planning to publish the price per MW for capacity credits associated with the CRC
award in September 2024. The CRC and associated capacity credits form a valuable part of the
economics of the project where Strike’s independent consultants model a range of $180-230k
per MW for the 2026 capacity year. At 85 MW of capacity, this is equivalent to annualised
revenues of $15 - 20 million which does not include any revenue associated with the proposed
sales of energy generated by the power station or provision of ancillary services.
Strike is now required to pay a $4.9 million deposit for the CRC which secures its position in the
NAQ allocation process.
Strike’s Managing Director and Chief Executive Officer Stuart Nicholls said:
“Being awarded the 85 MW of capacity for the 2026 cycle paves the way for South Erregulla’s
path to market. The project capitalises on the incremental value that integrated gas to power
projects can generate from the spark-spread during peak power prices and WA’s capacity credit
mechanism. Upon receiving confirmation of our minimum network access quantity, we look
forward to taking a Final Investment Decision.
“Strike’s proposal to integrate the South Erregulla gas field into a dedicated peaking gas power
station to firm local renewable power generation, is a clear demonstration of how Strike is using
its gas endowment for a positive impact in Western Australia’s energy transition.”
This announcement is authorised for release by the Managing Director and Chief Executive
Officer in accordance with the Company’s Continuous Disclosure Policy.
