Pilot Energy revealed that it is preparing to launch three new feasibility studies on blue hydrogen and CCS in the mid- and southwest regions of Australia.  

The feasibility studies are 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. 

 

 

Overview of the Blue Hydrogen Feasibility Studies

 

 Mid West Blue Hydrogen and Carbon Capture and Storage 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 commercialisation via the provision of CO₂ management services and sale of hydrogen. Two leading international feasibility contractors have been engaged to assist with the study and further external assistance may be required to complete the study.

Pilot has engaged Genesis, wholly owned by Technip Energies, to project manage the feasibility study and prepare the overall study report in conjunction with the company and the other feasibility consultants. In addition, Pilot is 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) Limited and Pilot.

The forecast cost of the study is $0.6 MM and the 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. 

Blue Hydrogen and CO_2M Technology Feasibility Study In preparing Pilot’s submission to the WA Government’s Oakajee Strategic Industrial Area Renewable Hydrogen expression of interest, Pilot’s technical assessments highlighted that a significant capacity of gas fired generation may be required to support the development. Pilot identified 8 Rivers Allam Fetvedt Oxy Combustion technology for clean power generation as a key enabling technology in achieving a low to zero carbon emission development at Oakajee.

Pilot has engaged 8 Rivers to undertake a detailed assessment of deploying the clean power generation and 8 Rivers Hydrogen Autothermal Reforming technology for clean hydrogen production. The study will investigate the integration of these technologies across renewable hydrogen and blue hydrogen and CCS projects.

The forecast cost of the study is ~$0.9 MM and the study will be conducted over a 6-month period. As part of the fee arrangements, 8 Rivers will be issued 13.3 MM options (at an exercise price of $0.08 per share and with a 36-month term) to enhance the longer-term commercial alignment between the companies and partially reduce the upfront cash cost of the study. The options are subject to a voluntary escrow period aligned with the delivery of the final report.

Key outcomes of the study will include a detailed description and assessment of development projects, execution strategy (site selection and permitting), levelized cost of electricity and hydrogen. The study will also assess the integration of the 8 Rivers technology with the production of renewable hydrogen. The 8 Rivers technology requires pure oxygen, as such the study will assess the integration of renewable hydrogen electrolysis which produces pure oxygen and hydrogen into facilities using the 8 Rivers technology.