Pilot Energy Limited: Leading the Renewables Push

The Projects
The company holds an upstream portfolio of production and early-stage exploration assets in the mid-west of WA. Whilst the E&P portfolio provides growth opportunities it’s not the transformational investment driver. The company is looking to transition into the renewable energy space, leveraging its advantageous position through WA-481-P and infrastructure facilities at Cliff Head into a multi optioned development portfolio. To that end the company is well advanced on a feasibility study (the Cliff Head & Mid-West Wind and Solar Project – CH-MWWSP) to underpin a submission to the WA State Government seeking Expressions of Interest to develop a major integrated renewable project with hydrogen manufacture in the mid-west. The opportunity is conceptual at this stage but up- and mid-stream assets provides PGY with a significant, cost- advantaged opportunity to pursue an integrated development with multiple commercial outcomes. This is not simply a power generation play, in our view.

The opportunity
We live in a new energy paradigm – there is more pressure and focus on the traditional models of energy supply and companies must adapt. Driven by an increasing need to address climate change issues related to carbon emissions, renewable energy alternatives are now firmly set on the societal agenda as evidenced by recent publications and initiatives from the Federal Government and in this specific case, the WA State Government. The Oakajee strategic hub could host up to 1.25GW of wind power and up to 270MW of large-scale solar generation. The mid-west region of W.A. already hosts numerous wind and solar farms; and is recognised for its world-class wind and solar energy potential as outlined in numerous studies. In this regard PGY’s holdings in WA-481-P with the associated Cliff Head oil production facilities provide the company with a strategic location and infrastructure advantage. The potential to combine a sustaining, high quality offshore wind resource and manufacturing opportunity with existing offshore and onshore infrastructure and if necessary, supply from existing, large- scale gas production operations underpins the company’s project premise and strategy. The proposal is supported by a tangible pathway to commercialisation.

Making ‘H’ while the sun shines
PGY will also be investigating the potential for the establishment and integration of a hydrogen production plant using the natural gas resources within the hub. An integrated project provides multiple ways to market and multiple revenue streams...as an electricity (power) provider, a hydrogen seller and with commercial potential from the CO2 stream formed as a natural product of the hydrogen process. Interestingly, in its recent results presentation (ASX:APA 23 Feb 2021), APA Group highlighted that it had launched its Pathfinder Program to unlock next generation energy solutions including seeking out pilot projects and strategic partnerships that focus on scalability. APA Group’s is readying 43km of its Parmelia Gas Pipeline in WA (which connects to the Oakagee hub) to be 100% hydrogen ready.