ADX is looking to the sun to reduce oil and gas production costs
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ADX Energy is studying the best way to install solar photovoltaic plants with potential power generation capacity of 2MW at its Vienna Basin oil and gas fields in Austria.
The company has signed a letter of intent with RWA Solar Solutions, which provides engineering, procurement and construction of PV systems along with their operation and maintenance.
RWA also makes investments in PV systems and has built PV power plants with a combined installed capacity of over 15 Megawatt Peak in Austria, over 30MWp under construction and another 80MWp under various development stages.
ADX Energy (ASX:ADX) and RWA have identified two one hectare sites within the former’s 13 hectare land position that may be suitable for the installation of ground-mounted PV plants.
The studies will confirm grid access and permitting matters critical to the execution of the solar project including land use, costing and schedule of the project development, which could generate about 2 gigawatt hours per annum of renewable electricity.
This represents about 45% of the company’s electricity consumption to run oil and gas operations at the Zistersdorf and Gaiselberg fields, which will reduce operating expenses by providing stable and predictable electricity prices well as well as enabling the ongoing decarbonisation of the company’s Vienna Basin operations.
“The Board of ADX welcomes the opportunity to work with the highly reputable and capable company, RWA, to jointly assess the feasibility of a solar project at ADX’s Vienna Basin oil and gas fields,” executive chairman Ian Tchacos said.
“The project provides ADX with the opportunity to enhance and diversify revenues from its oil and gas fields, as well as off-setting emissions from its operations.
“The solar project is an example of how renewable energy investments can be developed in conjunction with our oil and gas operations providing an environmental benefit as well as enhancing the value of our business.”
Should the studies be successfully finalised, the parties will enter into binding agreements for joint development of the plants.
Development of a Vienna Basin solar project could set the stage for the company to become a renewable energy producer and generate long-term revenue.
This includes the potential to scale up solar power generation through land position development and permitting synergies with its oil and gas production activities.
Nor is installing solar power the only step it is taking.
ADX also plans to use its depleted oil and gas reservoirs in the Vienna Basin to store green hydrogen.
This hydrogen could be produced by electrolysers powered by the sizeable wind farms in the area.
Speaking to Stockhead earlier this month, Tchacos noted that there were few places in the world with the combination of depleted reservoirs, availability of green power, and also the ability to put hydrogen into the local network that the company had.
ADX is also looking into developing geothermal power, which is the only truly 24/7 source of renewable energy, in Bavaria, Austria.
Tchacos pointed out that while geothermal power is very well developed across the border in Munich, Germany, it has not been developed in Bavaria despite having essentially the same geology.
“We know it’s there and we have drilling opportunities which have shallow gas and then deeper geothermal potential,” he added.
This article was developed in collaboration with ADX Energy, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.