Triangle Energy (Global) Ltd and partner Pilot Energy (ASX:PGY) Ltd continue to make progress with the Mid West Clean Energy Project (MWCEP) in Western Australia and are finalising a submission for initial regulatory approvals required for the Cliff Head Carbon Capture & Storage (CCS) project.
The Cliff Head CCS project forms the first stage of the MWCEP and is being progressed by the Cliff Head Joint Venture between Triangle Energy and Pilot Energy (ASX:PGY) with Pilot being the operator.
Together with CO2 storage and technical adviser CO2Tech, the partners are finalising the submission and expect to lodge it with NOPTA in the coming weeks.
Modelling finalised
CO2Tech and the Cliff Head JV technical teams have finalised the reservoir and geo-mechanical modelling required to support the application to declare formations within the WA 31-L area as identified greenhouse gas formations.
Technical analysis was presented to NOPTA during October 2022, ahead of submitting the formal application to declare an ‘Identified Greenhouse Gas Storage Formation’ within the WA 31-L tenement.
Expanding project team
As the MWCEP progresses from feasibility into execution, Pilot is expanding the dedicated project team with a number of appointments made with a focus on resourcing project leadership and supporting the engineering effort.
Jonas Jacobsen has been appointed as development director with the primary responsibility of leading the execution of the MWCEP and will also assist with the planning and execution of offshore and onshore wind resource monitoring programs.
Prior to joining Pilot, Jonas was technical director of the Star of the South offshore wind development in Victoria and was heavily involved in Pilot’s Mid West Renewable Energy feasibility study.
The Genesis team in Perth, Australia, has played a significant role to date as the lead consultant on Pilot’s recently completed feasibility studies.
This team’s deep understanding of Pilot’s study results and corporate strategy coupled with the extensive technical and operational knowledge base within Genesis and the broader T.EN Group, resulted in Pilot selecting Genesis as its owners engineer for the MWCEP.
8 Rivers will provide technical resources to the project. Commencing this month, 8 Rivers will assign key personnel to the MWCEP for an initial period of six months, assisting in the preparation of a basis of design for the hydrogen production facilities.
The basis of design is required to support the CCS FEED and pre-FEED for the hydrogen and ammonia facilities.
8 Rivers Capital investment
8 Rivers Capital has closed on its strategic investment of A$500,000 in Pilot in exchange for 29,411,765 ordinary shares and three-year options for 14,705,882 ordinary shares exercisable at A$0.033 per ordinary share.
8 Rivers and Pilot have also entered into a definitive agreement for priority rights to ammonia, with Pilot providing an option for 50% of its blue ammonia production to 8 Rivers (up to 250,000 tonnes per annum).
The expanded MWCEP team will focus on preparing for Stage 1 (Cliff Head CCS) to enter front end engineering design (FEED) in 2023 with this timing linked to the grant of the Declaration of a Greenhouse Gas Storage formation over the Cliff Head WA 31-L tenement.
“Progressing in all material aspects”
Pilot chairman Brad Lingo said: “Pilot (as operator of the CH CCS project) is extremely excited by the progress of the technical advisers for this project and in particular the imminent submission of the Stage 1 regulatory approval for the CCS project (the Declaration of Greenhouse Storage Formation).
"The project is progressing in all material aspects, from regulatory requirements to ammonia offtake arrangements, which has laid the platform for the commencement of FEED in 2023.
"The MWCEP will provide for the direct ability to reduce significant and growing CO2 emissions in the Mid West region of Western Australia.
"The project will provide a safe and permanent solution to make a material contribution to Australia meeting its greenhouse gas emissions reduction commitments.”
Ammonia marketing
Pilot also continues to engage with potential project partners and customers for Carbon Capture & Storage (CCS) and ammonia offtake with ammonia marketing to be accelerated through the appointment of New Energy Technology Ltd (NET) as Pilot’s ammonia market adviser.
This work will have a particular focus on the rapidly growing markets in Asia.
NET is a diversified global hydrogen business with deep and targeted networks in the energy and technology sectors in Australia and globally which includes the marketing of ammonia to various international destinations.