Pilot Energy Limited (ASX: PGY) has announced a major advancement for its Mid West Clean Energy Project (MWCEP) with approval from the Australian government to declare a greenhouse gas storage formation offshore Western Australia.
The declaration by the Commonwealth Minister for Resources and Minister for Northern Australia covers the WA-31L licence area and certifies a storage capacity of 13.4 million tonnes for the Cliff Head Storage Formation.
This capacity is sufficient for the initial stage of the MWCEP’s Cliff Head CO2 storage project.
“This declaration represents a material advancement in the development of Pilot’s Mid West Clean Energy Project and is an exciting milestone for carbon capture and storage (CCS) and clean energy production in Australia,” said Brad Lingo, Executive Chairman of Pilot Energy.
The approval follows Pilot’s application to the National Offshore Petroleum Titles Administrator (NOPTA) in November 2022.
It is a key de-risking milestone, satisfying a condition for many of the project’s commercial agreements, including Pilot’s acquisition deal with Triangle Energy for the WA-31L licence.
As one of Australia’s first declared offshore CO2 storage areas, the declaration provides confidence in the nation’s regulatory regime for CCS projects.
This further de-risks the MWCEP for potential international partners.
Pilot and its owner’s engineer Genesis expect to finalise the pre-front-end engineering design (Pre-FEED) for the MWCEP by June 2024.
With the declaration in hand, the project can then proceed to:
- Engage with traditional owners and stakeholders
- Conduct front-end engineering design for the CO2 storage project
- Select final technology partners for hydrogen and ammonia production
- Commence ammonia production facility FEED in the second half of 2024
In parallel, the MWCEP team will continue engaging regulators to secure remaining approvals, including an injection licence and federal/state environmental clearances.
Lingo expressed gratitude to NOPTA, the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA), and the Department of Industry, Science, Energy and Resources for their constructive approach in assessing this first-of-its-kind application.
“As the Pilot team worked through this application, it has been with a singular goal of delivering a project that can enable Western Australian emitters to take action with a clear opportunity to reduce carbon emissions through abatement and permanent storage on a cost-effective basis,” he said.
The MWCEP aims to produce clean hydrogen and ammonia while permanently storing CO2 captured from industrial facilities.
It represents a major investment in Australia’s transition to a net zero future.