Pilot Energy secures A$6.5mn grant for West Aussie clean energy project
Sydney-listed Pilot Energy has been awarded a A$6.5mn ($4.32mn) federal grant to support the Mid West Clean Energy Project (MWCEP), which provides carbon capture services to the Mid West region of Western Australia, the company announced on July 23.
The grant has been awarded to Pilot under the Commonwealth Department of Climate Change, Energy, the Environment and Water (DCCEEW) - Carbon Capture Technologies Programme. This funding will enable Pilot to advance engineering and technology demonstration activities across three sources of carbon, with the initial potential to capture 200,000 to 300,000 tonnes/year of carbon. This volume represents approximately 50% of the estimated volume required to support Pilot’s Cliff Head Carbon Storage Project.
The grant application received additional support from a range of industry, commercial, and regional stakeholders, including Yamatji Water, a potential water supplier to the MWCEP. Two key initiatives will now progress with the grant's support: the deployment of a pilot facility to demonstrate the Capture6 water processing and direct air capture (DAC) system, and a carbon capture technology assessment and pre-FEED study on the carbon management solution and carbon supply chain for a confidential Mid West WA emitter.
Capture6 is a partner for Pilot’s broader MWCEP, as its technology can be used to process water produced by future carbon storage operations for re-use in the proposed blue ammonia production system.
The carbon supply chain pre-FEED study will assess a carbon management service for the confidential Mid West emitter’s facility, from the point source of emissions through to delivery to the MWCEP. Subject to the study's outcomes, this assessment will provide the parties with a platform to progress commercial negotiations on a carbon management agreement.
Pilot’s chairman, Brad Lingo, stated, “This A$6.5mn grant allows Pilot to continue to build momentum in the MWCEP following the recent declaration of storage formation and completion of the pre-FEED study.”
The CCS project marks the first stage of the MWCEP, converting the Cliff Head oil field from oil production to a CCS project. The second stage of the MWCEP involves blue hydrogen production, and the third stage focuses on producing clean ammonia for export. The project recently secured support from a consortium of Korean companies.