Pilot Energy has commenced activities at the Mid West Clean Energy project with key consultants engaged to progress regulatory approvals, commercialise project commodities, obtain land access and secure project financing and partnering arrangements.
The Mid West Clean Energy project (refer to the Company’s 28 March ASX Announcement Mid West Feasibility Update for further information) will be executed over three stages progressively delivering the following core components:
- Stage 1: Cliff Head Carbon Capture and Storage (CCS);
- Stage 2: Blue Hydrogen production
- Stage 3: Ammonia production
Stage 1 – The Cliff Head CCS (CH CCS) project
Conversion of the Cliff Head oil field from oil production to CCS is the launch pad for delivering low cost, clean energy. As recently confirmed by the Feasibility Studies, the Cliff Head offshore oil field and associated infrastructure is ideally suited for a medium scale CCS project, designed to capture and store CO2, with an initial injection rate of circa 500,000tpa. The project will provide up to 16 million tonnes1 of permanent CO2 storage and will fully utilise the existing onshore and offshore facilities on a continuing basis for at least the next 20+ years. The CHCCS project is being developed by leveraging existing natural resources (underground CO2 storage capacity and natural gas) and infrastructure (Cliff Head oil project and natural gas infrastructure).
As announced on 26 April 2022, the Cliff Head Joint Venture (CHJV) restructure will see Pilot holding a 57.5% operating interest in the Cliff Head infrastructure and CO2 storage capacity required to execute the Mid West Clean Energy project.
Once operational, the CH CCS project will to be one of Western Australia’s significant near-term carbon abatement projects providing a pathway to reduce WA Mid West gas industry emissions and will enable Pilot to progress to Stage 2, being the production of blue hydrogen. Following the production of hydrogen, Pilot will then implement Stage 3 being the conversion of hydrogen to ammonia ready for export. Stage 3 also assumes the integration of green hydrogen supplementing the Stage 2 blue hydrogen.
The key near term milestones associated with the (Stage 1) CCS development will be the granting of the Cliff Head CCS Greenhouse Gas Injection Licence by the relevant regulators and the CH CCS JV’s Final Investment Decision both anticipated to occur by late 2023.