Pilot has committed to continuing its funding of the full operating costs associated with the Cliff Head facilities, as the company progresses it plans to transition the site from oil production to carbon dioxide storage under its flagship Mid West Clean Energy Project.
The existing headline terms of the transaction remain intact, including a $4M milestone payment to Triangle upon the award of a greenhouse gas injection licence and a 2 per cent royalty on third-party revenues from the Cliff Head Carbon Storage Project, capped at $7.5M.
Pilot Energy executive chairman Brad Lingo said: “Reaching these revised terms is a positive development as it enables Pilot to acquire a 100% interest in the Cliff Head oil field joint venture and associated operating assets. Under these revised terms Pilot can continue progressing the proposed Cliff Head carbon storage project, which is a key component of the broader Mid West Clean Energy Project.”
Pilot recently laid out a project development agreement with a consortium of South Korean mega-energy firms led by Korea Southern Power Co to jointly develop the Mid West Clean Energy Project and secure a supply of clean ammonia.
The consortium is well-funded by government initiatives targeting the ammonia supply for use in hydrogen co-firing in coal-fired power plants in Korea.
Pilot is also assessing how the facilities may be used to support additional productive operations and confirmed it is set to begin execution of a grant-funded carbon capture and water processing pilot project with technology partner Capture 6.
The updated agreement with Triangle marks the latest step in Pilot’s transformation into a carbon management and clean energy producer. The company is now a step closer to creating Australia’s first offshore carbon dioxide storage project, which would also establish a domestic supply of clean ammonia for export to Asia-Pacific clean energy markets.
With the revised terms in place and a clarified regulatory pathway, Pilot now has the flexibility to capitalise on its strategic infrastructure and existing partnerships in South Korea as it broadens its role in WA’s low-emissions future.
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