• A member of the Korean Consortium backing the Mid West Clean Energy Project (MWCEP) has received $2.2 million to support its feasibility study
  • Korea Southern Power Co, as part of the K-Consortium (which also consists of Korea East-West Power, Samsung C&T and Approtium), has secured the funding from Export-Import Bank of Korea
  • The K-Consortium aims to take a major stake in the MWCEP as part of South Korea’s plans to generate most of its electricity from carbon-free energy sources by 2038

 

Special Report: Pilot Energy’s run of good news continues with a member of the Korean Consortium (K-Consortium) backing the Mid West Clean Energy Project (MWCEP) receiving $2.2 million to support its involvement.

Leading energy company Korea Southern Power Co (KOSPO) has secured 2 billion South Korean won (approximately A$2.2m) from the Export-Import Bank of Korea to help finance its feasibility study on Pilot Energy’s (ASX:PGY) flagship project – MWCEP.

KOSPO is part of the K-Consortium which includes other major power generation and energy companies such as Korea East-West Power, Samsung C&T and Approtium.

The K-Consortium aims to secure a major stake in the MWCEP as it plays a role in South Korea’s plans to generate most of its electricity from carbon-free energy sources by 2038.

The group of leading corporations is also responding to a world-first initiative that’s part of South Korea’s clean energy push – the Korean hydrogen power generation auction.

The bidding market to supply electricity produced from clean-hydrogen-fired power generation has just closed, with soon-to-be announced winners to supply up to 6,500 gigawatt hours (GWh) of electricity.

 

Flagship takes shape

Pilot has been on a roll over the past few months, with news including the federal government’s granting of a first of its kind declaration to enable offshore permanent carbon storage at the MWCEP in June.

A couple of weeks after that milestone, Pilot announced a 370% upgrade to its carbon storage resources.

Pilot has since secured more funds to advance the MWCEP thanks to a $6.5 million grant from the Commonwealth Department of Climate Change, Energy, the Environment and Water, plus a $11.5 million offer for its Three Springs solar farm project.

 

Cutting emissions, boosting clean energy supply

The K-Consortium support for the MWCEP is major demonstration of the project’s huge potential to tackle the challenge of emissions reduction while catering to the growing demand for clean energy carriers like ammonia.

The project will use established oil and gas assets, alongside other infrastructure, to capture CO2 emissions from the atmosphere, the project itself and industrial facilities.

It will then store the CO2 permanently in the depleted Cliff Head oil field about 12km off the coast in Western Australia’s Mid West region.

The first stage of the project, with an expected launch in 2027/28, will offer permanent storage capacity exceeding 1 million tonnes of CO2 annually.

The next stage, set to launch in 2029, involves the MWCEP producing up to one million tonnes of clean ammonia for export into key APAC markets such as South Korea and Japan.

 

About the K-Consortium

The K-Consortium members are major power generation and energy companies leading efforts in Korea to decarbonise the economy and as well as KOSPO include Korea East-West Power Co, Samsung C&T and Approtium.

The MWCEP meanwhile is also designed to incorporate the future supply of hydrogen into WA’s domestic energy market.

Pilot is pursuing this goal in part through an MoU with Electiq Global, whose next-generation hydrogen solid carriers were recently showcased by Amazon Web Services at the COP28 UN climate summit.

 

 

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.

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