Pilot Energy gets another boost with $11.5m Three Springs offer

Pilot Energy nabs $11.5 million offer for 376MW Three Springs solar farm development project
Pilot expects transaction close before 2024 ends
Alternative renewable energy sites closer to its Mid West Clean Energy Project to be accelerated with proceeds

Special Report: Pilot Energy has got another boost to its world-leading Mid West Clean Energy Project (MWCEP) with an $11.5 million offer for the Three Springs solar farm development.

The company has been progressing the 376MW project to support the delivery of low carbon ammonia for major export markets from the MWCEP.

But at the same time, Pilot (ASX:PGY) has also been actively securing options on additional renewable energy development sites closer to the proposed low carbon ammonia project site.

The sale of Three Springs Project will now allow the company to invest more capital into those newly identified locations while accelerating progress at the MWCEP.

The move by Pilot follows the recently completed MWCEP pre-FEED study confirming that combining carbon storage at Cliff Head with WA’s Mid West region’s vast renewable energy resources has the potential to deliver industry leading low carbon intensity ammonia.

Pilot expects the transaction with EDP Renewables APAC to be finalised before the end of this calendar year after all due diligence has been completed.

Pilot’s chairman Brad Lingo said: “The proposed sale is a great result for Pilot and will provide significant capital for the Company to progress the Cliff Head Carbon Storage Project and the acquisition of the Cliff Head JV interests, while also accelerating the development of renewable power sources in the Mid West region to power the Mid West Clean Energy Project.”

Clean energy for Mid West and beyond

The MWCEP is being developed to cater to growing worldwide demand for clean energy carriers such as ammonia and carbon storage.

It was recently awarded for its innovation and leadership with a $6.5 million grant under the Commonwealth Department of Climate Change, Energy, the Environment and Water’s (DCCEEW) Carbon Capture Technologies Program.

Using Pilot Energy’s existing oil and gas assets, as well as other established infrastructure, the project will capture CO2 emissions and store them permanently in the depleted Cliff Head oil field about 120km offshore.

The first stage of the project, with an expected launch next year, will offer permanent storage capacity exceeding 1 million tonnes of CO2 annually. Those CO2 emissions will be captured from external industrial sources and the project itself.

Expected to allow continuous injection through to 2050, the total storage capacity of the CCS component of the MWCEP will be more than 50 million tonnes, placing it within the top 10 CCS projects globally.

The second stage, set to launch in 2027/2028, will have the MWCEP producing up to 1.2 million tonnes of clean ammonia for export.

Pilot Energy is successfully targeting APAC markets such as South Korea, which is aiming for a 7.1% ammonia and hydrogen energy mix by 2036 as part of its plans to move away from coal to clean energy to meet its net zero goals.

This article was developed in collaboration with Pilot 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.