Pilot Energy Secures $6.5M Grant to Advance Carbon Capture in Mid West
PGY (PGY) Share Update July 2024 Monday 22nd
Pilot Energy Secures $6.5M Grant for Carbon Capture Project
Pilot Energy Limited (ASX: PGY) has been awarded a $6.5 million grant by the Commonwealth Department of Climate Change, Energy, the Environment and Water to support its Mid West Clean Energy Project (MWCEP) in Western Australia.
Instant Summary:
- Pilot Energy awarded $6.5 million grant.
- Grant to support Mid West Clean Energy Project (MWCEP).
- Initial potential to capture 200,000 – 300,000 tonnes of carbon per annum.
- Collaboration with partners like Capture6, KC8, Svante, CarbonCo, Genesis Energies, Curtin University, and Deloitte.
- Deployment of a pilot facility for Capture6 water processing and direct air capture (DAC) system.
- Carbon capture technology assessment and pre-FEED study for a confidential Mid West WA emitter.
Grant Details
Pilot Energy Limited (ASX: PGY) has been awarded a $6.5 million grant to support its Mid West Clean Energy Project (MWCEP), which aims to provide carbon capture services to the Mid West Region of Western Australia. The grant was awarded under the Commonwealth Department of Climate Change, Energy, the Environment and Water's Carbon Capture Technologies Program.
The funding will enable Pilot to advance engineering and technology demonstration activities across three sources of carbon, with the initial potential to capture 200,000 – 300,000 tonnes of carbon per annum. This volume represents approximately 50% of the estimated volume required to support Pilot's Cliff Head Carbon Storage Project.
Partnerships and Collaborations
Pilot collaborated with several partners to secure the grant funding, including Capture6, KC8, Svante, CarbonCo, Genesis Energies, Curtin University, and Deloitte. The grant application also received support from various industry, commercial, and regional stakeholders, including Yamatji Water.
Key Initiatives
Two key initiatives will now be progressed with the support of the grant. The first is the deployment of a pilot facility to demonstrate the Capture6 water processing and direct air capture (DAC) system. The second is a carbon capture technology assessment and pre-FEED study on the carbon management solution and carbon supply chain for a confidential Mid West WA emitter.
Capture6's technology can process water produced by future carbon storage operations for re-use in the proposed blue ammonia production system. Following a successful pilot, the Capture6 carbon removal and water technology has the potential to reduce the cost and environmental impact of the MWCEP's water handling system significantly.
Statements from Key Figures
Pilot's chairman, Brad Lingo, expressed gratitude for the broad support the application received and highlighted the momentum the grant provides for the MWCEP. Capture6's CEO, Ethan Cohen-Cole, also expressed enthusiasm for the project, emphasizing the role of Capture6's technology in enabling and accelerating the energy transition.
This $6.5 million grant is a significant boost for Pilot Energy, providing the necessary funding to advance their carbon capture initiatives. The successful implementation of these technologies could position Pilot as a leader in carbon management and clean energy solutions in Western Australia. The grant also reflects strong governmental and industry support, which could positively influence investor sentiment and stock performance.
Investor Reaction:
Investors and analysts have reacted positively to the announcement, noting the potential for Pilot Energy to capitalize on the growing demand for carbon capture and clean energy solutions. The collaboration with reputable partners and the support from various stakeholders further bolster confidence in the project's success.
Conclusion:
Investors should keep an eye on Pilot Energy's progress with the Mid West Clean Energy Project and the potential long-term benefits of their carbon capture initiatives. The $6.5 million grant marks a significant milestone for the company, and its successful implementation could lead to substantial growth and value creation.