Pilot secures Korean support for West Aussie clean energy project

Sydney-listed Pilot Energy has secured the support of a consortium of Korean companies for the Mid West Clean Energy Project (MWCEP) in Western Australia, the company announced on July 17.

The consortium, comprising Korea's power generation and energy companies, has been formed to review equity participation in the MWCEP, which is currently being solely developed by Pilot Energy.

This development comes just weeks after the Australian government approved the Declaration of Greenhouse Gas Storage Formation for the Cliff Head carbon storage project. This approval, granted by the Minister for Resources, Madeleine King, allows the development of the Cliff Head carbon capture and storage (CCS) project and triggers the sale of Triangle Energy's 78.75% interest in the project to partner Pilot Energy.

Pilot Energy stated that the Korean consortium has a "deep interest" in the project and aims to respond to the Korean hydrogen power generation auction market by securing ammonia offtake from the project.

The consortium has formally appointed technical, market, financial, and legal advisors and intends to conduct detailed due diligence on the proposed project. Pilot Energy and the consortium will concurrently commence negotiating the key terms of the joint development agreement and jointly fund the commencement of FEED based on the results of the due diligence.

In support of Pilot Energy’s application for the Declaration of Storage Formation, the consortium has also met with and written to the Australian government and the state of Western Australian departments to communicate their interest in and support for the project, Pilot Energy stated.

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.