Pilot Energy to retain full ownership of Cliff Head Renewable Energy Project
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Following positive early indications from feasibility studies, Pilot Energy has decided to retain full ownership of its WA-481-P permit and Cliff Head Renewable Energy Project.
Pilot Energy (ASX:PGY) has made substantial progress on advancing the feasibility studies for its solar, wind and hydrogen projects in Mid-West WA, with preliminary results providing the company with confidence to retain 100% control.
While the feasibility studies on the Mid-West Renewable Energy, Hydrogen and Carbon Capture Project are not yet complete, they have highlighted the highly competitive position that these projects can potentially provide Pilot.
The results will be released over the course of the next couple of months, but early indicators suggest significant and high-capacity onshore and offshore renewable energy resources that are well positioned to support green hydrogen production.
The WA-481-P permit area in the Perth Basin, which Pilot had previously planned to sell a 78.75% stake in to Triangle Energy (ASX:TEG), has also demonstrated significant carbon capture potential.
The carbon capture assessment indicates that the potential of the WA-481-P permit, in the area immediately outside of the Cliff Head Oil Field permit, is ~10-times larger than the potential identified within the Cliff Head Oil Field permit.
A number of experts agree that carbon capture and storage (CCS), which has been in use since the early 1970s on a commercial scale, will play a key part in the clean energy transition.
Leveraging both the renewable energy resources and CCS offers Pilot significant potential to deliver blue and green hydrogen for domestic consumption and export.
Pilot says all of these factors support the potential early development of blue hydrogen production for domestic supply.
In advancing the feasibility studies, Pilot has already formed an initial feasibility consortium with infrastructure heavyweight APA Group (ASX:APA) and Warrego Energy (ASX:WGO) for the Mid West Blue Hydrogen and Carbon Capture Project.
The company has also received significant interest from other parties keen to partner in both the stand-alone wind and solar renewable energy projects and the clean hydrogen and carbon capture projects.
Given these encouraging results, Pilot is laser focused on the development of the Mid West Renewable Energy Project and the Mid West Blue Hydrogen and Carbon Capture Project in conjunction with its complimentary Perth Basin gas projects and infrastructure.
Following its decision to retain full ownership of WA-481-P, Pilot plans to continue to advance the planned work program and ensure environmental studies and planning also support the company’s proposed carbon capture project and the offshore wind projects.
Pilot Energy says it remains a committed partner with Triangle, which retains a majority interest in the Cliff Head Oil Field (WA-31-L).
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.