Pacific Energy is pleased to announce it will be converting its diesel power plant at Pilbara Minerals Limited’s Pilgangoora Operation, in Western Australia, to a combined natural gas-diesel power station, helping to deliver a lower-emissions future for Pilbara Minerals.
The announcement comes off the back of the recent Pilbara Minerals’ ASX announcement detailing the lithium miner’s medium-term power strategy, a three-stage plan slated to significantly reduce its power related emissions intensity.
The 15-year power station upgrade agreement is an amendment to Pacific Energy’s existing build-own-operate contract to supply power to the Pilgangoora Operation. The agreement supplements a separate 6 MW solar power agreement in place between the two companies. The upgrades will play an important role in Stage 1 of Pilbara Minerals’ medium-term power strategy, which aims to further displace diesel fuel use with a lower-emissions fuel.
Under the agreement, Pacific Energy will convert its current on-site power plant to a combined natural gas-diesel power station, expand overall power generation to support its client’s P1000 expansion project, and integrate a battery energy storage system, initially to improve system reliability and efficiency, and subsequently to support future solar integration.
Pacific Energy’s upgrades will comprise 12 new 2.5 MW high-efficiency gas generators and a 13 MW/8 MWh BESS at the main power station. A portion of the existing diesel generators will remain on-site to provide additional power security across both the Pilgan and Ngungaju power plants.
Pacific Energy’s Chief Executive Officer, Jamie Cullen, said the project is further demonstration of the company delivering on its ambition to transition the world to a clean energy future.
“Decarbonising both our own and our clients’ operations is absolutely front of mind for Pacific Energy,” he said. “We know we play a critical role in helping our clients to reduce their emissions intensity by transitioning their power supplies to lower-emissions alternatives.
“We’re really pleased to be partnering with Pilbara Minerals on their journey towards net zero. Projects like this one lead to emissions intensity reductions, and they also enable the cleaner production of critical minerals like lithium, which are essential for our growing global renewable energy technology market. That’s something we’re really proud to support.”
Pacific Energy’s LNG conversion will help Pilbara Minerals substitute 90% of the diesel it currently uses for stationary power generation, replacing it with trucked LNG, a lower emissions-intensive fuel source, which is expected to reduce power related carbon emissions intensity by approximately 20%.
Pacific Energy expects project works to commence in early 2024, with the upgrades due for completion by mid-2025.
