Tag Archives: Contract Power Australia

Pacific Energy merges KPS Power Generation and Contract Power Australia

Environmental, Power supply for mines, Sustainable mining, , , , ,

Pacific Energy has announced the merger of two of its remote power generation businesses, KPS Power Generation (KPS) and Contract Power Australia, resulting in a single, specialist remote energy company trading as Pacific Energy Pty Ltd.

The integration of the two businesses will bring together a collective 65 years of specialist off-grid remote power generation experience both in Australia and overseas, much of this in mining.

The company said: “With the combined strength, experience and enviable market position of owning and operating over 40 power stations with more than 550 MW of contracted power and over 200 full-time personnel, the merged businesses will continue to provide the same reliable, remote power generation services incorporating collective experience in:

  • Thermal power;
  • Solar power;
  • Wind power;
  • Battery energy storage systems;
  • LNG storage and regassification facilities; and
  • Green hydrogen.

Over the 65-year combined journey, KPS and Contract Power have collectively constructed over 93 power stations, across multiple generation technologies, delivering energy infrastructure totalling over 1.1 GW in Australia and overseas, Pacific Energy said.

Existing personnel and leadership will remain in the joint operating business, with Leon Hodges, Founding Director of Contract Power, assuming the Managing Director position for Pacific Energy Pty Ltd, and Roy Pascoe from KPS assuming General Manager Operations role.

Michael Hall, Chief Operating Officer of Contract Power, will assume the role of Chief Operating Officer and Chief Technology Officer for the entire Pacific Energy Group of Companies.

Jamie Cullen, CEO of Pacific Energy Group, recognised the significance of this merger for the group.

“We have years of history, experience and capability, and are continuing to lead the pack in terms of embracing new technologies and renewable penetration,” he said.

“We are thrilled with the performance of the group over the last couple of years and, under the ownership of QIC since late 2019, we are well positioned and resourced to continue expanding our growth profile and geographical reach. It made sense to bring together the two powerhouses of KPS and Contract Power together to form one strong and formidable team to design and deliver cutting edge, highly reliable remote power generation solutions for our clients.

“The team have been working on delivering some exciting ground-breaking projects, working with clients to meet demand and drive towards net zero emissions. Bringing the teams together under one roof will allow us to combine resources and leverage from the existing experience and expertise to further strengthen and bolster the capability of the group.”

The Perth operations of the integrated business will be housed in a new, state of the art 25,000 sq.m in Kewdale, Western Australia, and supported by regional operation centres in Kalgoorlie and Cue.

Pilbara Minerals enlists Contract Power Australia for Pilgangoora solar power plans

Energy minerals, Environmental, Mining services, Power supply for mines, , , , , , ,

Pilbara Minerals Limited has announced a Power Purchase Agreement (PPA) between its wholly owned subsidiary, Pilgangoora Operations Pty Ltd, and Contract Power Australia that could see a 6 MW solar array built at the Pilgangoora lithium project in Western Australia.

The solar array is, the company says, an important demonstration of its commitment to implementing environmentally friendly power solutions, as a part of its pledge to transition to net-zero emissions (scope 1 and 2) in the decade commencing 2040.

Pilbara Minerals said it looks forward to continuing its working relationship with Contract Power and the broader Pacific Energy Group, which began in 2018 when the first baseload power station was installed at Pilgangoora. The PPA involves a 15-year contract to construct, operate and maintain a 6 MW solar array, which is estimated to displace 3.8 million litres/y of diesel fuel, saving an estimated 9,900 t of CO2/y over the contract period.

“A key factor in awarding this exciting new renewable energy project to Contract Power was their established track record and ability to design and safely deliver turnkey energy projects,” the company added.

It is anticipated that procurement for the project will commence imminently with commissioning expected in late July 2022, and commercial operation from the end of August 2022. The design facilitates the future expansion of solar capacity and potential inclusion of battery storage at Pilgangoora, as Pilbara Minerals creates further efficiencies around its power supply and storage solutions at Pilgangoora, it said.

The installation of the first phase of the solar farm is just one part of the initial rationalisation of power assets at Pilgangoora, as the company further integrates the Ngungaju Operation. A local power network will be created to join the Ngungaju and Pilgan Plants, and the Carlindi camp facilities thereby creating further efficiencies, Pilbara Minerals explained.

Pilbara Minerals’ longer-term objectives include integration with other northern Pilbara power and/or gas and renewables sources with a view to creating further efficiency gains on the path to net-zero carbon.

Strandline seals energy agreement for Coburn with Contract Power Australia

Environmental, Industrial minerals, Mineral project development, Mining services, Sustainable mining, , , , , ,

Strandline Resources has executed a 15-year electricity supply agreement (ESA) with Contract Power Australia, a wholly owned subsidiary of Pacific Energy Ltd, to build, own, operate and maintain (BOOM) the power generation and LNG storage and regasification facilities for the Coburn mineral sands project in Western Australia.

Coburn’s purpose-designed power infrastructure is based on a low-cost, low-emission solution integrating natural gas-fuelled generation with state-of-the-art solar and battery storage technology.

The executed ESA, which follows Contract Power Australia being appointed preferred contractor at Coburn, enables Strandline to capture energy supply cost savings relative to the definitive feasibility study published in June 2020. This study anticipated a development capital for the project of A$260 million ($199 million), excluding financing costs.

Contract Power specialises in turnkey design, installation and operation of energy assets and has a strong track record of delivery in the mining sector of Western Australia, Strandline said.

Coburn’s power station will be located near the mineral separation plant. The power station is designed to be suitable for a maximum demand capacity of 15 MW and average consumed power of circa-10 MW. Natural gas will be supplied by others under an industry standard long-term LNG supply agreement and trucked to an on-site storage and re-vapourisation facility supplied by Contract Power. The LNG then feeds a set of engine generators on an N+1 basis and has circa-30% solar (renewable) penetration for the major stable loads. Generation is at 11 kV with step up to 22 kV for power transmission to the project loads across the mine site.

Coburn has a JORC compliant mineral resource of 1,600 Mt at 1.2% total heavy mineral (THM), classified as 119 Mt measured, 607 Mt indicated, and 880 Mt inferred. The ore reserve comes in at 523 Mt grading 1.11% THM for circa-5.8 Mt of contained heavy mineral, underpinning an initial mine life of 22.5 years at a mining rate of 23.4 Mt/y.

The contract is based on a 15-year BOOM commercial model with fixed and variable payment regime for power consumed over the term, Strandline said. The contract provides for incorporation of wind turbine and other new generation technology solutions under agreed commercial structures as and when they become commercially attractive to the project.

Strandline Managing Director, Luke Graham, said the execution of this major development and operational contract marked another key step in the company’s strategy to bring Coburn into production as well as establishing an important relationship with Contract Power, a leader in sustainable clean energy generation in Western Australia.

Capricorn Metals secures gas power for Karlawinda gold project

Mineral project development, Mining project news, Power supply for mines, Precious metals, , , , , , , ,

Capricorn Metals says it has entered into agreements with APA Group for the transportation of gas from the Goldfields Gas Pipeline (GGP) to the Karlawinda gold project, in Western Australia.

As part of the agreement, APA will also build, own and operate the lateral pipeline that links the GGP to Karlawinda. It is expected that some 3 Tj/d of gas will be transported through the pipeline for power generation at Karlawinda.

Capricorn has also recently executed a power supply agreement with Pacific Energy subsidiary Contract Power Australia where, under the terms of the agreement, Contract Power will build, own and operate a 16 MW gas-fuelled power station with 2 MW of diesel back-up at Karlawinda.

Based on a 1.2 Moz reserve, Capricorn envisages a 12-year mine life at Karlawinda, with an annual production target of 105,000-120,000 oz of gold. The company plans to mine a single large, low strip ratio open pit and use a 3.5-4.0 Mt/y carbon-in-leach processing plant.

Development of the project is underway, with commissioning expected in the March quarter of 2021.

Capricorn Executive Chairman, Mark Clark, said: “We look forward to a successful long-term partnership with these high-quality companies to meet our energy requirements. The completion of these contracts, combined with the current low price of gas in Western Australia, present Capricorn with a very attractive cost of power generation for the operation of the Karlawinda project.”