Pilot Energy (ASX:PGY), a major Australian energy company transitioning towards clean energy and carbon management, hosted a delegation of prominent Korean companies at the Mid West Clean Energy Project (MWCEP) site on 23 May 2024.
This visit, facilitated by the October 2023 Memorandum of Understanding (MoU) between Pilot Energy and Samsung C&T Corporation, signifies significant progress for the project.
Samsung C&T, having acquired a 20 per cent stake in the MWCEP and acting as the engineering, procurement, and construction (EPC) contractor, played a key role in organising the visit.
The Korean delegation, comprised of representatives from major companies, gained valuable insights into the project’s development and immense potential.
Discussions focused on collaboration and investment opportunities within the framework of the MWCEP.
The MWCEP is a groundbreaking initiative in Australia. It combines carbon capture and storage technology with clean ammonia production, positioning Pilot Energy as a frontrunner in the clean energy transition.
The project aims to capture CO2 emissions from industrial facilities and store them permanently in the depleted Cliff Head oil field located offshore.
Simultaneously, the MWCEP will produce clean ammonia for export, particularly targeting markets like South Korea which is aiming for a 7.1 per cent ammonia and hydrogen energy mix by 2036.
The Mid West Clean Energy Project: A Closer Look
The MWCEP consists of two crucial components:
Cliff Head Carbon Capture and Storage (CHCCS) Project:
- This component involves repurposing the existing Cliff Head offshore oil field, approximately 120 kilometres south of Geraldton, into a dedicated CO2 storage facility.
- With an anticipated launch in 2026, the CHCCS project aims to offer permanent storage capacity exceeding 1 million tonnes of CO2 annually.
- Notably, the CHCCS will capture and store CO2 emissions from external industrial sources alongside capturing nearly 99 per cent of the CO2 generated by the MWCEP itself.
Clean Ammonia Production:
- Pilot Energy plans to produce up to 1.2 million tonnes of clean ammonia per year, leveraging 220,000 tonnes of hydrogen production. The targeted commencement date for ammonia production is 2028.
- The hydrogen production process will utilise a blend of blue hydrogen (derived from natural gas with CO2 capture) and green hydrogen (generated from renewable energy sources).
- The clean ammonia will be exported primarily to markets like South Korea.
The CHCCS operation facilitates blue hydrogen production by capturing and storing the associated CO2 emissions. Additionally, the project incorporates green hydrogen production from renewable sources and aims to supply hydrogen to the domestic Western Australian market.
By combining carbon capture and storage with clean hydrogen and ammonia production, the MWCEP presents a comprehensive solution.
It tackles the challenge of emission reduction while catering to the growing demand for clean energy carriers like ammonia.
This project is said to position Pilot Energy and its partners at the forefront of the global clean energy transition.