Samsung C&T has joined Pilot Energy as Joint Development Partner in the Mid West Clean Energy Project (MWCEP) in Australia, which involves the development of carbon capture and storage (CCS) and clean ammonia.
Subject to key conditions being satisfied, Samsung C&T will acquire a 20% stake in the MWCEP; has rights to act as the EPC contractor for the clean ammonia project; and will use its skills to arrange for clean ammonia offtake for export to Korea.
The agreement is described as a ‘non-binding, conditional MOU’ in relation to the development of the Cliff Head CCS Project (CH CCS) and the Clean Energy Ammonia Project (collectively known as the MWCEP).
Conditions include the National Offshore Petroleum Titles Administrator (NOPTA) declaring a Greenhouse Gas Storage Formation over the WA-31-P area; completion of the integrated project pre-FEED study; and each party’s final board approval.
A sum of around $67m will be paid to Pilot by CHCCS Co – a new, to be incorporated, joint venture project entity – at financial close which is based on historical construction costs of the Cliff Head oil project, which forms the foundation assets for the MWCEP and billed as Australia’s first CCS offshore project.
Brad Lingo, Chairman of Pilot, said, “Samsung C&T’s participation is an important step as they provide additional technical expertise and financial strength to ensure the successful development of this exciting Western Australian clean energy project.”
Ross Gregory, Chairman of Australian Chamber of Commerce in Korea, said the partnership further demonstrates the continued strong collaboration between Australia and Korea on important clean energy transition projects.
Source: Pilot Energy
The MWCEP, located around 120km south of Geradlton on the mid west coast of Western Australia, is aiming to produce up to 1.2Mtpa of clean ammonia from 2027. The project includes several sub-projects including carbon management for third parties, permanently storing CO2 associated with blue hydrogen production, through to the production of clean ammonia from blue and green hydrogen.
Blue hydrogen will be produced utilising 8Rivers’ proprietary 8RH2 production technology providing over 99% capture of all carbon emissions and permanent storage through fully integrated CCS facility.
More than 1500MW of low-cost wind and solar renewable power has been identified, enabling production of green hydrogen feedstocks delivering a combined total carbon intensity of 0.03OCO2:NH3/tonne.
The Cliff Head Carbon Capture and Storage (CHCCS) project, which forms part of the overall MWCEP, aims to provide over 1Mtpa of permanent carbon capture & storage starting in early 2026, capturing both third party industrial CO2 emissions as well as ~99% of any CO2 generated by the MWCEP.
Pilot is a junior oil and gas exploration and production company that is pursuing the diversification and transition to the development of carbon management projects, production of hydrogen and clean ammonia for export to emerging APAC clean energy markets.
Samsung C&T is actively developing its overseas green hydrogen business, based on the experience of global renewable generation projects, and capacity in Australia, where it sees a future core market for green hydrogen. It posted KRW830.4bn (up 33.6bn year-on-year) operating profit in Q3.
