PERTH (miningweekly.com) – Feasibility studies by ASX-listed Pilot Energy have confirmed the viability of developing a large-scale clean hydrogen production project in the Mid West region of Western Australia.
Pilot Energy last year announced key studies to assess the feasibility and economics of, and to recommend the pathway for development for, a large-scale clean hydrogen production project using the company’s existing oil and gas production operations.
The feasibility studies for the Mid West integrated renewable energy project included the Mid West blue hydrogen and carbon capture and storage (CCS) study focused on the Cliff Head oil field, the Mid West renewable energy study, the 8 Rivers blue hydrogen technology study and the WA 481P CCS study.
Pilot Energy said on Monday that the renewables study and the 8 Rivers study have been completed.
The first stage of the WA 481P CCS study has also been completed providing an assessment of the carbon storage potential of Pilot’s 100% owned WA-481P exploration permit with estimates of both the contingent and prospective carbon dioxide storage resource capacity within the permit.
“Pilot is very excited about the results emanating from the feasibility studies. The results not only show how competitive an integrated clean energy project can be in Mid West Western Australia, but also outline a clear multi-stage development path starting with CCS and building off this platform to produce clean power and hydrogen for the domestic market and ultimately moves into production of low-cost clean ammonia for export as the new clean fuel for Asian energy markets,” said Pilot Energy chairperson Brad Lingo.
On a first-to-market scale, the Cliffs Head CCS project will produce 500 000 t/y at a targeted injection cost of less than A$20/t, with first operations targeted for 2025. The clean hydrogen project is targeted for 2025 to 2027 with production rates targeted at 43 000 t/y at a cost of A$5/kg.
Between 2027 and 2030, the Stage 3 renewables project would see the integration of the blue hydrogen project with 220 MW of renewable power generation to produce a further 18 000 t/y of green hydrogen.
Upon completion of the three-stage development, the studies confirm that the company will be able to produce approximately 61 000 t/y of clean hydrogen to produce approximately 350 000 t/y of clean ammonia to supply into Asian clean ammonia export markets.
“This staged development path is very much in the reach of the company in terms of financial capacity and technical delivery taking advantage of the existing Cliff Head oil field infrastructure and operations. The company is very focussed on delivering a first-to-market CCS project in the Mid West to anchor the further development of a clean hydrogen/ammonia and renewable energy project,” said Lingo.
“We are very much focussed on engaging with National Offshore Petroleum Titles Administrator and the other relevant regulators to secure the necessary approvals to implement this project with an aim of having the first stage of the development pathway operational by 2025 and generating positive cash flow from these operations as well as delivering a material impact on carbon emissions in the Mid West.”
Pilot is, meanwhile, nearing completion of the CCS and blue hydrogen study which is assessing the implementation of a CCS and blue hydrogen project centred on the Cliff Head oil field which is expected to be completed within the next several weeks. Pilot holds a 21.25% interest in the Cliff Head oil field through its 50% ownership of Triangle Energy, which is the operator of the Cliff Head oil field.
This CCS and blue hydrogen feasibility study is being jointly funded and contributed to by Pilot, and ASX-listed companies APA Group and Warrego Energy.