Pilot Energy Ltd. revealed that it has formed a consortium with APA Group and Warrego Energy Ltd. to undertake and jointly fund Pilot’s Mid West blue hydrogen and CCS feasibility study. The feasibility study is forecast to complete in the first quarter of CY2022.

The Consortium will participate in and jointly fund the Feasibility Study with a focus on the Blue Hydrogen technology, regional CCS potential, hydrogen markets, project infrastructure and commercialization. Pilot will undertake a standalone assessment of the Cliff Head project’s CCS potential to provide the Feasibility Study with the necessary assumptions regarding the potential CO₂ injection rate and CO₂ storage capacity. 

Figure 1. provides an overview of the study area and the Consortium participants’ infrastructure.

Figure 1.

 

Pilot has previously completed a pre-feasibility screening of the CCS potential of the Cliff Head Oil Field with RISC Advisory which indicated that the Cliff Head Oil Field could provide carbon geosequestration of approximately 500,000 tpy of CO2 for a period 13-years at an injection cost of approximately $16/t of CO₂, utilizing the existing Cliff Head Oil Field onshore and offshore infrastructure and be fully operational by 2025.

The consortium arrangements set out a process for further joint participation in progressing towards project development following completion of the feasibility study.

Overview of the blue hydrogen feasibility studies

As a diversified energy company, Pilot plans to leverage its existing oil and gas assets together with established energy industry infrastructure to become a leading developer of competitive clean energy projects in Western Australia. The Feasibility Study is designed to assess blue hydrogen and CCS projects that can integrate with existing assets and infrastructure to deliver competitive clean energy. Selected development projects identified by the studies will form the basis for future FEED studies, partnering and other corporate initiatives. The feasibility study will initially focus on the area highlighted on Figure 2 (refer to blue dashed area).

 

Figure 2. 

 

Figure 2 depicts Pilot’s projects and facilities together with infrastructure that Pilot proposes to develop subject to the results of the feasibility study. Pilot’s future projects anticipate leveraging its existing assets and resources to develop world class clean energy projects across the Mid West and South West regions of Western Australia. The future infrastructure projects may include, as shown above, a CO₂ pipeline and injection facility, blue hydrogen plants, CCS sites, offshore and onshore wind, solar, renewable hydrogen plant, substation, transmission lines and hydrogen pipelines. Future wind and solar developments remain subject to the feasibility study reporting condition as set out in Annexure 1. 

Mid West blue hydrogen and CCS feasibility study

The objective of the Mid West Blue Hydrogen and CCS study is to assess the carbon capture, storage and use potential of the Cliff Head oil project and additional reservoirs across the broader Perth Basin, the production of blue hydrogen and commercialization via the provision of CO₂ management services and sale of hydrogen. Two leading international feasibility contractors have been engaged to assist with the feasibility study and further external assistance may be required to complete the study.

Genesis has been engaged to project manage the feasibility study and prepare the overall study report in conjunction with the consortium and the other feasibility consultants. In addition, the consortium will be leveraging Technip Energies’ significant hydrogen industry experience to complete an assessment of blue hydrogen production technologies and hydrogen markets.  

RISC has been engaged to conduct the assessment of the infrastructure and CCS reservoirs (Cliff Head and other reservoirs across Perth Basin) associated with the proposed carbon management services and CCS activities. The team at RISC has a long history with the Cliff Head asset through involvement in the initial development through to a recent Cliff Head oil reserves/resources audit for Triangle Energy (Global) Ltd. and Pilot.

The feasibility study will be conducted over a six-month period. Key outcomes of the study will include detailed description and assessment of development projects, levelized cost of hydrogen and CO₂ management services.