ASX Renewable Energy Stocks: Carnarvon Energy snaps up $2m funding for renewable diesel project
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More than $11 million will be offered to seven regional projects in the second round of the State Government’s Clean Energy Future Fund (CEFF), supporting innovative clean energy projects with the potential to support reductions in greenhouse gas emissions.
These projects include solar, wind, biogas and bio-diesel generation, battery and pumped hydroelectric storage, geothermal energy, and the replacement of gas with electricity to decarbonise the alumina refining process.
If the pilot projects are successful and technologies prove commercially viable, the seven projects could reduce emissions by 32 million tonnes of carbon dioxide equivalent in WA.
Carnarvon Energy’s (ASX:CVN) renewable diesel business, FutureEnergyAustralia (a 50:50 joint venture arrangement with Frontier Impact Group) has been awarded a $2 million Clean Energy Future Fund grant from the WA State Government.
The funding provided by the Clean Energy Future Fund grant will go towards project development, preliminary site works, and engineering, procurement, construction, and commissioning (EPCC) activities for the first renewable diesel project in Narrogin.
Renewable diesel is fuel that is chemically similar to petroleum diesel, but is 100% renewable and sustainable. It is made of non-petroleum renewable resources such as natural fats, vegetable oils, and greases.
FutureEnergy Australia has a vision to convert sustainably sourced woody biomass such as ecological thinnings, oil mallees and plant-based agricultural residues into renewable diesel using high temperature pyrolysis.
Renewable diesel can replace conventional diesel without requiring modifications to diesel engines seeing as it burns cleaner and has a lower emissions profile compared to conventional diesel.
The produced renewable diesel also has the potential to be further refined into sustainable aviation fuel (SAF).
This high-temperature pyrolysis process also produces high-quality biochar and wood vinegar, with CVN aiming to develop multiple biorefinery projects across Western Australia, each producing commercial volumes of renewable diesel through net-carbon zero technology, and establish a substantial Australian-owned and operated renewable fuels business.
It is also looking to refine the high-quality biochar into graphene, which has a number of attractive applications including in the next generation of high-capacity, long-life, fast-charging batteries.
Electricity generator and gas retailer, Alinta Energy, has also nabbed $1.5mn in funding from the Western Australian government to add battery storage to a gas-fired power station.
This will replace the spinning reserve, which burns gas, with energy stored in the battery to provide instant support to the grid when needed.
The plans are for a 90MW solar farm near south Hedland a 60MW battery with two-hour storage adjoining the existing gas generator.
Alinta says the project will supply power to the 66 kV Port Hedland power system for which Alinta Energy is the network service provider.
The facility follows the January 31 announcement of EOL acquiring CQ Energy Pty Ltd in its own capacity and provides the funding required to complete this important strategic acquisition.