“In partnership with Korean firms, Pilot Energy aims to be the pioneering company to deliver the first operational carbon storage facility offshore in Australian Commonwealth waters,” said Chairman Brad Lingo during an interview with the Chosun Daily in Seoul on July 5.
Lingo’s visit to Korea, his second in two months, followed the Australian government’s approval for carbon storage offshore in Western Australia. Pilot Energy’s Mid West Clean Energy Project (MWCEP) aims to produce 1.2 million tons of clean ammonia annually at a low cost using the Cliff Head oil field facilities, with a goal to store over 1 million tons of carbon dioxide starting in 2026. With this official license, Pilot Energy can now store 13.4 million tons of carbon in the WA 31-L region.
Lingo explained that this trip was aimed at meeting with companies involved in forming a joint venture to develop the MWCEP. “We aim to announce the formation of this joint venture by the end of the month,” he said. “Our meetings focused on transitioning from the planning phase to execution now that we have received approval for the Cliff Head carbon storage project.”
Could you please introduce Pilot Energy and provide an overview of the Mid West Clean Energy Project?
“The Midwest Clean Energy Project is about providing a credible carbon emissions reduction and storage facility while producing clean, carbon-free molecules for export. The Cliff Head project is the cornerstone for Australia’s first Commonwealth government-approved carbon storage operation, enabling both carbon storage and the production of clean ammonia for export. We’ve collaborated closely with Korean companies to form joint ventures for this development. We thank our Korean partners for their support, emphasizing the project’s significance for both them and Korea.
The initiative aims to secure clean, carbon-free energy in the form of blue ammonia and to position Australia long-term as a location for the permanent storage of CO2 emissions from Korea. Korean energy consumers seek carbon-free energy sources like hydrogen and ammonia. They also seek to capture and export significant carbon emissions from their power generation to jurisdictions capable of providing carbon storage, with Australia being one of those countries.”
What are the immediate next steps for the MWCP the project following the government aprroval?
“The immediate steps for our Korean joint venture partners include finalizing the project’s design basis and the technologies to be used. Based on recent meetings, we agreed to commence the front-end engineering design (FEED) for the project starting by the first of August. The meetings also included initial discussions with a well-recognized Korean engineering and construction company to become a main partner in both the FEED and the ultimate construction of the project.”
How does Pilot Energy achieve the advantage of offering lower prices compared to its counterparts?
“Based on feasibility studies, we benchmarked our blue ammonia pilot project against the July Bloomberg NEF report, showing it is competitive with the lowest-cost hydrogen producers. The report highlights four key factors for low-cost blue ammonia: carbon capture and storage, electricity, natural gas, and technology selection.
Pilot’s project uniquely owns its carbon capture and storage facility and is fully powered by low-cost renewable energy from wind and solar. It is adjacent to very low-cost, long-term competitive sources of natural gas in Western Australia. Combining these advantages with the best available technologies and utilizing existing infrastructure, we ensure low-cost carbon storage. This integration enables us to produce ammonia at minimal cost and carbon intensity, supporting the energy transition with competitive, carbon-free substitutes and reducing global emissions.”
As the chairman, what do you perceive as the strengths of Pilot Energy?
“One of Pilot Energy’s unique strengths lies in our ability to develop a carbon storage operation by converting existing oil or gas facilities in Australia, leveraging a legal framework established since 2006. Despite being a small company, we seized this opportunity with vision and determination, presenting our plan to the government and conducting thorough engineering assessments. We successfully demonstrated to the Australian Commonwealth Government that we could convert oil fields into CO2 storage sites safely and permanently.
The Australian regulatory framework for carbon capture and storage, rated the most advanced globally by the Global CCS Institute for two consecutive years, underscores our achievement. Our approach to the government was marked by humility, honesty about our lack of prior experience in such projects, and recognition that we were pioneers with our application in November 2022. This endeavor reflects our commitment to realizing our vision and partnering with Korean companies on this transformative project.”
How does Pilot Energy’s support for Korea’s carbon neutrality goals facilitate Korea’s transition towards cleaner energy sources?
“The Pilot and Mid West clean energy project can provide a significant opportunity for Korean companies to meet clean energy targets. By supplying clean ammonia, each 1,000-megawatt coal-fired power plant can reduce CO2 emissions by 20%. Our first annual delivery of one million tonnes would achieve a 20% reduction across 2,000 megawatts for up to 20 years. We aim to expand production to nearly 3 million tonnes, significantly decarbonizing coal-fired power and supporting the clean energy supply chain. We would be just one of many suppliers, but having that first supplier is essential to generate demand and start reducing emissions.
The Korean government aims to cut 11 million tonnes of CO2 emissions by 2030 through carbon capture and storage. Without suitable geology, Korea plans to capture CO2 and export it to countries like Australia. As a signatory to the International Maritime Organization’s London Protocol, Australia is required to store CO2 between treaty countries and is the only suitable nation in the Western Pacific. Our Cliff Head storage project targets a 5 million-tonne annual capacity by 2030, potentially meeting 25% to 50% of Korea’s export target.”
How important is the Korean market to Pilot Energy?
“It’s very important. We realize that our project has natural advantages, but these advantages are specific to our neighborhood, our part of the world. Australia is part of APEC, building on the long-term partnership between Korea and Australia. We see the potential for clean energy supply from Australia as the next phase in the growing and maturing relationship between Australia and Korea. We aim to demonstrate not only the strength of this partnership but also that Pilot can be the first company, alongside Korean partners, to deliver the first operational carbon storage facility offshore Australian Commonwealth waters. By doing so, we aim to expand this opportunity to help decarbonize not only Australia but also our trading partners.”
