Tag Archives: Pacific Energy

Hybrid Systems Australia and Horizon Power open renewable hydrogen demo plant

Hybrid Systems Australia, Pacific Energy’s integrated renewables subsidiary, has joined Horizon Power in officially opening Horizon Power’s renewable hydrogen demonstration plant.

The Australian-first project, which is being delivered in partnership by Horizon Power and Hybrid Systems Australia, will test the technological and commercial viability of renewable hydrogen as a baseload power source.

Hybrid Systems Australia was engaged to design, construct and commission the plant and worked closely with fellow Pacific Energy subsidiary, ENGV, to supply and install hydrogen equipment in the integrated system, including a 348 kW electrolyser, a specialised hydrogen compression and storage system and a 100 kW fuel cell.

The company also constructed a 704 kW solar farm to generate the renewable energy required to produce hydrogen.

In addition to providing valuable learnings for future applications of renewable hydrogen across the power generation sector, the system aims to demonstrate the efficiency of the hydrogen equipment such as the electrolyser and fuel cell, the ramp rate of hydrogen in response to a decline in solar generation, and the efficiency and storage capability of hydrogen fuel cells versus batteries.

Hybrid Systems Australia’s Executive Director, Mike Hall, said the project had proved ground-breaking, providing plenty of opportunities to further develop the company’s expertise and add value more broadly to the burgeoning sector.

“As an industry-first, this project has presented some really interesting opportunities for us to grow our capabilities in the green hydrogen project delivery space,” he said.

“It’s still a budding industry in Australia, so we really had to start at the beginning, from designing a system based on first principle thinking to navigating both existing and newly developing industry regulations and licensing designed for different applications. We’ve worked closely with Horizon Power and regulators to get the process right, and it’s been a very dynamic project, but we looked at any challenges as growth opportunities, and in doing so, we’ve been able to see things through fresh eyes.

“We’re looking forward to seeing the outcomes of Horizon Power’s Denham project and ongoing research and, furthermore, what it means for renewable hydrogen in utility-scale applications.”

The plant, which produced its first hydrogen in October, is expected to produce renewable energy equivalent to the average power demands of 100 households, or about 20% of Denham’s residential and business power needs, and will offset approximately 140,000 litres of diesel annually.

The project is a A$9.3 million ($6.2 million) investment, co-funded by Horizon Power, the Western Australian State Government and the Australian federal government. The Western Australia Government provided A$5.7 million of funding, with A$1 million through the Renewable Hydrogen Fund. The Australian Renewable Energy Agency (ARENA) provided A$2.6 million of funding through its Advancing Renewables Program.

Hybrid Systems Australia, a subsidiary of the QIC-owned Pacific Energy Group Holdings Pty Ltd, is currently commissioning Horizon Power’s renewable hydrogen demonstration plant, which is expected to be fully operational in early 2023.

Woodside Energy and EDL to help power up Thunderbird mineral sands project

Sheffield Resources says the joint venture that manages the Thunderbird mineral sands project in Western Australia has secured a supply of LNG for at least five years from subsidiaries of Woodside Energy Group Ltd and EDL.

Kimberley Mineral Sands, owned 50:50 by Sheffield Resources and Yansteel, has executed a binding five-year agreement, with the ability for the parties to extend for a further five years, with Woodside Energy (LNG Fuels & Power) Pty Ltd, a subsidiary of Woodside Energy Group Ltd (Woodside) and EDLLNG Fuel to Power Pty Ltd (EDL) for the supply and delivery of approximately 650 tj/y of liquefied natural gas (LNG) to the project.

LNG will be supplied by the Woodside/EDL joint venture (WEJV) from Woodside’s Pluto LNG Truck Loading Facility, near Karratha in Western Australia, and transported to the KMS LNG storage facility by WEJV. WEJV will own and operate a purpose-built road tanker fleet to safely and reliably deliver the LNG to Thunderbird.

The agreement enables flexible, long-term gas supply to KMS for power generation, Sheffield said, adding that it was subject to a number of customary conditions precedent, including KMS making a final investment decision toward the development of Thunderbird, following the completion of project financing of Thunderbird.

Sheffield Resources Executive Chair, Bruce Griffin, said: “We are extremely pleased KMS have established a strong relationship with Woodside and EDL as they support KMS by delivering a low cost, efficient energy solution for Thunderbird. Thunderbird construction is continuing to advance at a significant pace and remains on track for first production in early 2024.”

A bankable feasibility study released earlier this year outlined a A$484 million ($314 million) Stage 1 project using a Single Mining Unit Plant that underpinned a 10.4 Mt/y mining operation and a processing plant design feed rate of 170 t/h. The Stage 2 project saw a duplication in year five of Stage 1 mining underpinning a 20.8 Mt/y mining operation and an increase in the processing plant feed rate to 290 t/h.

Earlier this month, Pacific Energy signed a 15-year Power Purchase Agreement with KMS, wherby Pacific Energy will design, build, own and operate a 16 MW high efficiency gas power station combined with 2 MW of battery storage and an on-site LNG storage and re-vaporisation facility with 10 days’ storage capacity for the Thunderbird project.

Pacific Energy secures hybrid power PPA for Thunderbird mineral sands project

Pacific Energy says it has signed a 15-year Power Purchase Agreement with Kimberley Mineral Sands (KMS) for the Thunderbird mineral sands project in Western Australia.

Under the agreement, Pacific Energy will design, build, own and operate a 16 MW high efficiency gas power station combined with 2 MW of battery storage and an on-site LNG storage and re-vaporisation facility with 10 days’ storage capacity.

The agreement accommodates the future addition of solar energy and the parties will commence working on this augmentation as soon as possible to create a larger hybrid power facility, Pacific Energy says.

Pacific Energy CEO, Jamie Cullen, said: “We are extremely pleased to have been selected to deliver an efficient power generation and gas storage solution for KMS’ flagship Thunderbird project.”

Sheffield Resources Executive Chair, Bruce Griffin, added: “We look forward to KMS expanding their relationship with Pacific Energy, and for the support from Pacific Energy to deliver a stable and efficient energy solution for Thunderbird. We welcome this important milestone step in establishing Thunderbird as the next major mineral sands producer in the near future.”

Construction is due to commence in December 2022.

KMS is owned 50:50 by Sheffield Resources and Yansteel.

A bankable feasibility study released earlier this year outlined a A$484 million ($325 million) Stage 1 project using a Single Mining Unit Plant that underpinned a 10.4 Mt/y mining operation and a processing plant design feed rate of 170 t/h. The Stage 2 project saw a duplication in year five of Stage 1 mining underpinning a 20.8 Mt/y mining operation and an increase in the processing plant feed rate to 290 t/h.

Pictured above: the Thunderbird process plant layout (power generation & storage area inset)

Westgold signs gas and renewables agreements with Pacific Energy, CEFA

Westgold Resources, in line with its ongoing objectives to enhance profitability and focus on cost optimisation, has executed a new Electricity Purchase Agreement with independent power provider Pacific Energy and a new LNG Supply Agreement with Clean Energy Fuels Australia (CEFA).

These agreements will deliver substantial operating cost savings to Westgold in its 2023-2024 financial years onwards of around A$100/oz ($68/oz) at the current diesel price and supports its commitment to environmental, social and governance (ESG) initiatives that will reduce the company’s long term greenhouse gas emissions, it said.

Under the build-own-operate agreement with Pacific Energy, Westgold will materially reduce diesel consumption by replacing six diesel-fired power stations (two owned and operated by Pacific Energy) with four new, highly efficient gas-fired power stations to incorporate renewable energy options and use solar power and battery storage across the Bryah and Murchison Operations. Critically for Westgold, this transition to a mixed generation platform includes renewables and gas and is expected to reduce carbon emissions from diesel-powered generators by over 57%, due to the higher integration of renewables (34% solar) and cleaner fuel (gas versus diesel), the company said.

Westgold’s first new Pacific Energy power station will be commissioned in July 2023 at the Tuckabianna processing hub, with the three additional new power plants scheduled for commissioning from September 2023.

Westgold has concurrently signed a bulk LNG supply agreement with CEFA. CEFA will supply Westgold from its expanded LNG plant located at Mt Magnet (pictured), 80 km south of Cue. This plant is currently providing LNG to another Pacific Energy power plant in the Murchison region and provides a substantial advantage due to its proximity to Westgold’s operations. CEFA will fund and construct satellite LNG facilities (primarily comprising LNG storage and re-gasification equipment) at Westgold’s project sites, with the LNG trucked direct from its plant at Mt Magnet.

The new gas and solar power station to be commissioned at Westgold’s Meekatharra operations will also serve to simplify power generation by removing smaller diesel fired power stations at the Paddy’s Flat and Bluebird underground mines and providing them power from a larger gas-fired power station via overhead powerlines, according to the company.

Westgold Managing Director, Wayne Bramwell, said: “The transition to a cleaner, more efficient energy platform that utilises renewables and gas in financial year 2023 is strategic for Westgold. It is an important step in meeting our ESG targets but is pivotal to reducing the operating cost of our business.

“Westgold has selected two industry leaders in Pacific Energy and CEFA to work with us in this transition and we look forward to seeing the benefits that integrating renewable power and cleaner energy alternatives can deliver to our business and the communities within which we work.”

Pacific Energy adds hydrogen power options with ENGV, Nel arrangements

Pacific Energy has announced the acquisition of ENGV, an Australia-based leading turnkey provider of green hydrogen production and refuelling facilities, as well as entered multi-year exclusive supply arrangements for Australia and New Zealand with Nel ASA of Norway, one of the world’s largest manufacturer of electrolysers.

The ENGV acquisition further advances Pacific Energy’s in-house capabilities, uniquely positioning the group to be the only sustainable distributed energy provider in Australia with internal capability to provide and integrate all renewable energy technology and services, the company says. This includes solar, wind, battery, LNG and now hydrogen, as well as traditional gas- and diesel-fired generation.

ENGV was established in 2013 as a full-service provider in all areas of hydrogen, natural gas, biomethane and LPG and has grown with the evolving Australian clean energy market. It is recognised as the market leader in green hydrogen and renewable gas services and solutions, Pacific Energy says.

“ENGV was the first – and is the most experienced organisation – in deployment of hydrogen and renewable gas technologies in Australia and has completed multiple design and install projects incorporating hydrogen refuelling station facilities, electrolysers and fuel cells,” it said.

The company has a suite of long-standing supply agreements with global suppliers of hydrogen and renewable gas production, refuelling, compression and transportation equipment, including Nel, Hexagon Purus, PowerCell and KwangShin.

Jamie Cullen, Pacific Energy Group’s CEO, said he was thrilled to announce the addition of ENGV to the group.

“This is an incredibly exciting acquisition and milestone for our group, as we embark on a national growth strategy and add the final piece to complete our renewable energy capability profile,” he said. “We have been witnessing a transformation in our industry in recent years and our pipeline of potential new projects has evolved to be comprised of around 75% renewable energy. This compares with less than 20% only a few years ago, and we now have full turnkey capabilities across all major renewable energy technologies for our mining, industrial and government customers.”

Sean Blythe, Founder, and CEO of ENGV, added: “This is a great opportunity for ENGV to accelerate our growth in tandem with the rapidly expanding hydrogen and renewable gas markets in Australia. Becoming part of the fast-growing Pacific Energy group will bring mutual opportunities to our respective businesses and staff. Personnel from both organisations already have good working relationships resulting from the work we are doing together at Denham in Western Australia, where we are delivering Australia’s first renewable hydrogen microgrid facility.”

Cullen, meanwhile, said he was excited to have cemented exclusive electrolyser supply arrangements with Nel. The company recently attended the official opening of Nel’s latest production facility in Herøya, Norway, which is the world’s first fully automated electrolyser production facility, with an initial capacity of 500 MW, scalable up to 2 GW.

Established in 1927, Nel supplies electrolysers globally and estimates that is has supplied over 75% of all electrolysers to date globally. This includes a 3.5 MW electrolyser it supplied to ENGIE as part of a project to deliver the world’s largest fuel cell haul truck for Anglo American.

Nel has had supply agreements in place with ENGV since 2018 and these have now been renewed with Pacific Energy exclusively across the Australian and New Zealand markets, Pacific Energy said.

Nel’s Vice President Sales & Marketing (EMEA – Oceania), Raymond Schmid, said: “We recognise the importance and emergence of Australia in the green hydrogen market. The abundance of solar, wind and land resources provide the perfect landscape for green hydrogen production and together with Pacific Energy, we are excited to play a major role as the industry develops this decade and into the next.”

Iluka taps into hybrid power at Jacinth-Ambrosia after KPS project completion

Pacific Energy says its subsidiary, KPS Power Generation, has completed the conversion of Iluka Resources’ 10 MW diesel power station at the Jacinth-Ambrosia mineral sands mine in South Australia to a hybrid power facility.

The “world first” hybrid power station incorporates both solar photovoltaics and electric turbo compounding (ETC) technology, combined with an upgraded control system, Pacific Energy said. ETC technology allows generators to maintain the same power output using less fuel and producing lower CO2 emissions, making generators work more cleanly and effectively by recovering waste energy.

The reduction in diesel consumption and improvement in fuel efficiency is expected to save over 2 million litres of diesel and over 5,500 t/y of CO2 at the operation, according to Pacific Energy.

KPS has operated the 10 MW diesel power station at the Jacinth-Ambrosia site since 2009. Under the new contract, which runs for an initial term of seven years, KPS will:

  • Install 3.5 MW of solar power generation;
  • Integrate the solar array with the diesel power station; and
  • Introduce ETC technology to each of the 10 1 MW generators.

juwi Renewable Energy Pty Ltd, the Brisbane-based subsidiary of juwi AG, constructed the medium penetration solar/diesel hybrid power solution for Jacinth-Ambrosia, with KPS owning and operating the hybrid project. It is expected to deliver almost 21% of the mine site’s annual electricity needs.

Shane Tilka, General Manager, Australian Operations at Iluka, said: “The move from diesel to hybrid energy at Jacinth-Ambrosia marks an important evolution in Iluka’s Australian operations. It also offers a potential blueprint for the future use of renewable energy at the company’s other existing and planned operations.”

Pacific Energy Group CEO, Jamie Cullen, said: “We are thrilled to work alongside Iluka, a valued long-term client to deliver a world-class, world-first solar PV and ETC hybrid power facility, and to assist them with reducing carbon emissions and transitioning to net-zero emissions.”

Hybrid Systems Australia and LAVO to trial hydrogen energy storage at Kewdale

Hybrid Systems Australia has signed a Memorandum of Understanding (MoU) to determine and trial applications of LAVO’s hydrogen energy technology at its Kewdale facilities in Western Australia.

Hybrid Systems Australia, a subsidiary of Pacific Energy, specialises in the design, construction and installation of integrated hybrid systems, incorporating the use of solar photovoltaic, battery storage and backup, reciprocating gas and diesel generation, suitable for remote off-grid applications such as mine sites.

LAVO claims to have the first and only commercial-ready hydrogen energy storage system in the world designed for everyday use by residential homes and businesses, called the LAVO system. This system is designed to be easily integrated with existing solar panel infrastructure, with the company exploring further applications for its patented metal hydride solution. One potential application is already being explored at Macarthur Minerals Ltd’s Lake Giles iron ore project in Western Australia.

Under the MoU, LAVO will work closely with HSA to trial and test the application of hydrogen as an energy source using LAVO’s product offering at the Kewdale facility. As the first of its kind trial in Western Australia, it will test the applicability of incorporating LAVO’s products into HSA’s suite of products in the longer term, the companies said.

The demonstration project is expected to commence in July, extending the reach of LAVO’s existing demonstration projects across Australia.

Alan Yu, CEO and Executive Director of LAVO, said: “We are thrilled to be working with Hybrid Systems Australia on the development of the Western Australia LAVO demonstration project. With its commitment to supporting the shift to a greener future through alternative energy technologies, HSA’s vision for a renewable energy future amplifies our own ambitious sustainability agenda.

“Our industry partnerships continue to demonstrate the applicability of, and market interest in, LAVO’s hydrogen energy storage solutions and we look forward to developing a longer-term strategy alongside HSA as it commits to developing Western Australia as a centre for renewable hydrogen.”

Mike Hall, a Director of Hybrid Systems Australia, added: “Our investment in the development of ground-breaking projects like Denham, and our recent investment in Standalone Power Systems (SPS), has been driven by a nationwide demand for getting reliable power to remote customers using renewable energy solutions. We are excited at the opportunity to merge our experience and capabilities in hybrid power generation in conjunction with the LAVO technology and see many and varied applications for how we would use it.”

Wiluna Mining lays renewable energy groundwork with Contract Power extension

Wiluna Mining Corp has signed a 10-year contract extension with Contract Power Group that will see the power provider charge up the Wiluna Mining Operation in Western Australia until at least 2031.

The contract is geared towards meeting the forward needs of the Stage 1 development project at Wiluna, to provide a total rated power output of the power station of 14.1 MW. It will also re-configure the power station to increase gas generation and add a 2 MW battery energy storage unit to significantly reduce the need for back-up diesel generation, with four diesel generators being removed.

The new pact will also allow amortisation of costs over a longer period, therefore reducing Wiluna’s overall operating power charges; the company said.

And, when it comes to the Stage 2 development expansion project in 2023 at Wiluna, the contract will provide a solid base for a future mixed renewables power station, the company said.

Back in October, Wiluna Mining’s board gave the thumbs up to the Stage 1 development, which will see the company transition from its current production profile of producing 62,000 oz/y from mining free milling ore through the current 2.1 Mt/y carbon-in-leach processing facility, to initially producing 100,000-120,000 oz/y of gold and gold in concentrate. This will be implemented using the current, recently refurbished crushing circuit, the previously expanded mill circuit and a new 750,000 t/y concentrator by October 2021, the company said.

Wiluna then intends to increase production of gold and gold in concentrate by, at a minimum, doubling the mining rate and the concentrator to produce circa-250,000 oz/y by the end of 2023/early 2024 as part of Stage 2.

Contract Power, a subsidiary of Pacific Energy, has provided Wiluna’s power – a mix of natural gas and diesel power backup – since June 2016.

“Contract Power Group are experts in efficient generation of electrical power and in decarbonisation by harnessing off-grid wind or solar power,” Wiluna said. “Wiluna are refining its plans with Contract Power Group to include decarbonisation within our methods of power generation at site. This may also moderate our exposure to future volatility in the cost of hydrocarbon fuels.”

Wiluna will now focus on renewable power studies and options during 2021 and 2022 to:

  • Assess the right mix of renewables including solar, wind or pumped storage options;
  • Determine how best to integrate renewables into the total power delivery for an expanded operation; and
  • Optimise the decarbonisation of power generation with reliability and cost effectiveness.

Milan Jerkovic, Wiluna Mining’s Executive Chair, said: “We look forward to working with Contract Power to not only transitioning the Wiluna Mine once again into one of Australia’s biggest and most profitable gold mines, but to helping it become one of Australia’s cleanest mines.”

KPS to leverage ETC tech in hybrid power conversion at Iluka’s Jacinth Ambrosia mine

Pacific Energy Ltd’s wholly owned KPS subsidiary has signed a contract to convert its 10 MW diesel power station at Iluka Resources’ Jacinth Ambrosia mineral sands mine in South Australia to a hybrid facility.

The facility will incorporate electric turbo compounding (ETC) technology, which, the company says, allows generators to maintain the same power output using less fuel and producing lower CO2 emissions.

The conversion and upgrade will have a meaningful impact on lowering emissions and fuel costs for Iluka, Pacific Energy claims.

KPS has operated the 10 MW diesel power station at the Jacinth Ambrosia site since 2009. Under the new contract, which runs for an initial term of seven years, KPS will:

  • Install 3.5 MW of solar power generation;
  • Integrate the solar array with the diesel power station; and
  • Introduce ETC technology to each of the 10 1 MW generators.

ETC technology makes generators work more cleanly and effectively by recovering waste energy from the exhaust to improve power density and fuel efficiency, the company explained.

Juwi Renewable Energy Pty Ltd, the Brisbane-based subsidiary of juwi AG, is to construct the medium penetration solar/diesel hybrid power solution for Jacinth Ambrosia, with KPS owning and operating the hybrid project. After completion, it is expected to deliver almost 21% of the mine site’s annual electricity needs.

Pacific Energy Chief Executive, Jamie Cullen, said: “This is an exciting development for both Pacific Energy and Iluka Resources in what we believe is a world first – integrating solar and ETC technology with an existing fossil fuel facility. The reduction in diesel consumption and improvement in fuel efficiency is expected to save over 2 million litres of diesel and over 5,500 tonnes of CO2 per year, every year, for at least the next seven years.”

Galena signs up Contract Power for hybrid power gen facility at Abra JV

Abra Mining Pty Ltd, the joint venture company behind the Abra base metals project, has executed a power purchase agreement (PPA) with Contract Power Australia that could see the construction and operation of a hybrid power generation facility made up of a natural gas and solar energy array at the Western Australia project.

Announcing the PPA, Galena Mining, which owns 77.28% of the project, said Contract Power will build, own and operate an integrated hybrid power generation facility combining a 10 MW natural gas fired power station, a 6 MW solar array, 2 MW of battery energy storage and a 900 Kl LNG storage and regasification facility.

Power will be purchased by Abra under the PPA for an initial term of 16-years (extendable), it said.

Galena Managing Director, Alex Molyneux, said: “We’re pleased to partner with Contract Power on a clean, cost-effective power solution for Abra. Integrating solar with relatively clean natural gas instead of diesel achieves a marked reduction in Abra’s carbon footprint compared to alternatives considered in the tender process.

“Pleasingly, the design also offered the most cost-effective solution, in line with our feasibility study estimates.”

This definitive feasibility study outlined development of a mine and processing facility with a 16-year life producing a high-value, high-grade lead-silver concentrate containing around 95,000 t/y of lead and 805,000 oz/y of silver after ramp-up.

A Western Australia-based company wholly-owned by Pacific Energy Ltd, Contract Power specialises in the design, construction and operation of remote power stations for the mining and government sectors.

Contract Power has operated power stations around Australia under turnkey build-own-operate arrangements since 1999, and recent projects include a 56 MW gas fired power station for Mineral Resources Ltd’s Wodgina lithium project, a 18 MW gas fired station for Capricorn Resources’ Karlawinda project and a 18 MW gas and diesel power station at Wiluna Mining Corp‘s Wiluna gold project.

Contract Power’s Managing Director, Leon Hodges, said: “We are very pleased to be working with Galena on this important project and look forward to rewarding their confidence by delivering a world-class hybrid power station.

“Contract Power’s combined LNG and renewables integration capability has allowed our design team to maximise solar penetration as high as the economics and technology allows, providing the Abra project with the highest reliability and lowest cost of power on an unsubsidised basis.”

The PPA remains subject to the condition of Abra Mining Pty Ltd proceeding to final investment decision for the project, Galena said.