Pilot Energy has secured the support of a consortium of Korea’s power generation and energy companies for its Mid West Clean Energy Project
The consortium has appointed a range of advisors to help conduct detailed due diligence on the project
The first stage of the MWCEP involves the conversion of the depleted Cliff Head offshore oil field into a major permanent carbon storage operation
Special Report: Pilot Energy’s groundbreaking Mid West Clean Energy Project is a huge step closer to take-off after securing the support of a consortium of Korea’s major power generation and energy companies.
The formation of the “K-Consortium”, which aims to secure a major stake in the MWCEP, closely follows the Federal Government’s declaration approving offshore permanent carbon storage at the MWCEP last month.
The group of leading corporations is also responding to the Korean hydrogen power generation auction market.
The auction of multi-billion hours of clean-hydrogen-fired power will support South Korea’s plans to more than triple renewable energy generation, which is part of its commitment to generate most of its electricity from carbon-free energy sources by 2038.
An Austrade-supported Korean delegation visited Pilot Energy’s (ASX:PGY) MWCEP in May and the consortium has now formally appointed technical, market, financial and legal advisors to help conduct detailed due diligence on the project.
Pilot and the K-Consortium will concurrently start negotiating the key terms of the Joint Development Agreement and jointly funding the commencement of Front-End Engineering Design based on the results of the due diligence.
How the clean energy project works
The first stage of the MWCEP, set for 2026, involves the conversion of the depleted Cliff Head offshore oil field into a permanent carbon storage operation that can hold more than 1 million tonnes per annum of CO2. It will capture and store CO2 emissions from existing external industrial sources plus capture nearly 99% of the CO2 generated by the project itself.
With over 50Mt of potential storage capacity, the carbon storage component of the MWCEP will be among the top 10 carbon storage projects globally and it’s expected to allow for continuous injection through to 2050.
The next phase, scheduled to launch in 2028, involves the MWCEP producing up to 1Mt of clean ammonia for export to Australia’s key APAC markets, including South Korea.
The project has been designed to also incorporate the future supply of hydrogen into WA’s domestic energy market.
The hydrogen production process will produce blue hydrogen (derived from natural gas with CO2 capture) and in later stages green hydrogen (from renewable energy sources). Pilot intends to deploy 8 Rivers’ technology that produces gas-based hydrogen with carbon capture at industry-leading rates of beyond 99%.
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.
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