South Korean-Australian Collaboration for Cleaner Energy in Perth Basin
Key Ideas
  • A consortium of South Korean energy leaders, led by Korea Southern Power Co, is partnering with Australia's Pilot Energy to develop the Mid West Clean Energy Project in Western Australia's Perth Basin.
  • The project aims to produce blue ammonia for hydrogen co-firing in coal-fired power plants in Korea, a significant move towards cleaner energy solutions.
  • The initiative involves repurposing a former oil well into a carbon capture and storage (CCS) facility and storing liquefied carbon emissions to create a new revenue stream through carbon storage services.
  • Key milestones include completing a front-end engineering design request by March 15 and finalizing project ownership stakes and a final investment decision by mid-2024.
A consortium comprising South Korean energy companies like Korea Southern Power, Korea East-West Power, Samsung C&T, and hydrogen producer Approtium, in collaboration with Australia's Pilot Energy, is embarking on the Mid West Clean Energy Project in Perth Basin, Australia. The project's main objective is to produce blue ammonia to be used for hydrogen co-firing in coal-fired power plants in Korea. This move signifies a significant step towards adopting cleaner energy solutions and reducing emissions. The project involves repurposing a former oil well into a carbon capture and storage (CCS) facility, where liquefied carbon emissions from Western Australian industrial sources will be stored, creating a new revenue stream through carbon storage services. The consortium is targeting a fuel blend of 20% ammonia and 80% coal for use at KOSPO's Samcheok thermal power plant in Gangwon-Do, Korea. The initiative aims to reduce emissions while maintaining energy output. Recently, the consortium and Pilot Energy signed a non-binding project framework agreement to move the project forward. Key milestones include completing a front-end engineering design request, engaging contractors for blue hydrogen production solutions, finalizing ownership stakes, ammonia offtake arrangements, and making a final investment decision by mid-2024. The consortium aims to commence the FEED work by August 1, subject to the execution of a binding agreement by June 30. This collaboration represents a promising step towards a cleaner future in energy production.
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