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PRESS RELEASE
Perth WA: Friday 10th December 2021
NEW 16,000 SQUARE METER HYBRID SYTEMS AUSTRALIA FACILITY OPENS, CEMENTING ITS COMMITMENT TO THE FUTURE OF WA’S FAST GROWING RENEWABLE ENERGY SECTOR.
Hybrid Systems Australia (HSA) today officially opened its new facility, demonstrating the business’ commitment to support WA as a centre for renewable energy.
The new 16,000 square meter facility is in Perth Airport's industrial precinct and is over five times the size of the previous facility in Kewdale.
The new facility is understood to be the largest in the world focused on the design and construction of sophisticated Stand-Alone Power Systems (SPS).
The facility will house Hybrid Systems’ rapidly growing workforce of over 130 Western Australian staff, up from 30 only one year ago, generating new jobs and investment in Western Australia manufacturing and capabilities. This includes the support of apprenticeship programs, opportunities, and training within the fast-growing renewables sector.
Executive Director, Mike Hall recognised the significant milestone for the Hybrid Systems business.
“The company has seen rapid growth since its inception in 2015 and the investment in this world class facility is recognition of the growing demand of clean energy sources and solutions.”
“We are incredibly proud to be well positioned and have the scale to meet the increasing demand of SPS and larger grid connected Battery Energy Storage Systems (BESS)”
Hybrid Systems Australia joined the Pacific Energy Group in May 2020.
Pacific Energy Group CEO Jamie Cullen noted the importance of Hybrid Systems Australia as the integrated renewables subsidiary of the Pacific Energy Group.
“The team at Hybrid Systems is growing from strength to strength and form an integral part of the Pacific Energy Group, providing cutting edge renewable energy solutions both internally to our remote energy business and externally to government, mining and industrial customers”
Western Australian Minister for Energy Bill Johnston toured the world-class facility this week.
“Congratulations to Hybrid Systems Australia on their impressive, new facility.
Hybrid Systems is already a valued contractor for the WA Government, having provided more than 100 Stand-Alone Power Systems to Western Power.
They are playing an important role in WA’s rapidly-growing renewable energy future and helping the McGowan Government achieve its goal to rollout 1,000 SPS by 2025.”
Key Points:
Notes to Editors:
Hybrid Systems Australia
Hybrid Systems Australia (HSA) is an Australian company, headquartered in Perth specialising in Build Own Operations (BOO) or Design and Construct (D&C) inclusive of all aspects of design, procurement, manufacturing, installation, commissioning, and operations of remotely located hybrid renewable energy systems. This includes systems with varying combinations of Solar PV, Wind, Stand Alone Power Systems (SPS), Battery Energy Storage Systems (BESS), Hydrogen and back-up thermal generation. For more see www.hybridsystems.com.au or follow HSA on LinkedIn: https://www.linkedin.com/company/hybrid-systems-australia
HSA is a subsidiary of the Pacific Energy Group, which is owned by QIC, a globally significant infrastructure investor. HSA was purchased by Pacific Energy in May 2020.
Pacific Energy Ltd, Australia’s leading supplier of remote and integrated hybrid power, has signed a deal to acquire MVLV Power Solutions.
Established in 2015, MVLV is a highly regarded and fast-growing manufacturer of switchrooms, switchgear, BESS enclosures and related equipment and services.
The MVLV business is experiencing significant growth, and the acquisition by Pacific Energy will allow further expansion of the team, resourcing, and facilities.
As a key specialist supplier to the broader Pacific Energy group - including Hybrid Systems Australia, Contract Power and KPS, MVLV employs around 35 full time personnel and provides the following products and services:
• Low voltage switchgear
• Medium voltage switchgear
• Switchrooms
• BESS enclosures (integrated with low voltage switchboards/control panels)
• Kiosk substations
• Service and maintenance
• Certification and training
Pacific Energy Chief Executive Officer (CEO) Jamie Cullen welcomed Luke Davies and his team to the Pacific Energy group.
“We’ve worked closely with MVLV over the years and are looking forward to insourcing a key component of our supply chain and to assist the MVLV business to continue to grow”.
About Pacific Energy
Pacific Energy owns and operates 40 power stations, with contracted capacity of more than 550MW, through the company's KPS and Contract Power brands. They provide electricity safely and reliably to remote mines and townships, as well as the National Electricity Market (NEM), using multiple fuel technologies including gas, diesel, dual fuel, hydro and renewables.
Specialist hybrid solutions such as Stand-Alone Power Systems, microgrids and battery energy storage systems are provided for Government utilities and private industry by Pacific Energy subsidiary Hybrid Systems Australia.
QIC acquired former ASX-listed Pacific Energy Ltd (ASX: PEA) in November 2019. Brisbane-based QIC, formerly known as Queensland Investment Corporation, is a global diversified alternatives investment manager with over A$83 billion in assets under management and over 1,000 staff. Further details at www.QIC.com
For media comment please call Pacific Energy CEO Jamie Cullen (Perth) on +61 8 9303-8888
Pilbara Minerals Signs Power Purchase Agreement with Contract Power Australia to construct, operate and maintain 6MW Solar PV farm
KEY POINTS
• Pacific Energy Group (“PEG”) subsidiary Contract Power Australia Pty Ltd (“CPA”) has been awarded a 15-year contract to construct, operate and maintain a 6MW solar array.
• Pilbara Minerals maintains the option to purchase the facility outright in the future.
• The solar array is estimated to displace 3.8 million litres of diesel fuel per annum saving an estimated 9,900t of CO2 pa over the contract period.
• 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.
• This is an important initiative that has been undertaken in collaboration with Australia’s specialist clean energy investor, the Clean Energy Finance Corporation who are senior lenders under the Company’s senior secured syndicated debt facilities.
Australian lithium producer, Pilbara Minerals Limited (ASX: PLS) (“Pilbara Minerals” or “the Company”), is pleased to announce a Power Purchase Agreement (“PPA”) between its wholly owned subsidiary, Pilgangoora Operations Pty Ltd, and CPA at its 100% owned Pilgangoora Project, located 120km south of Port Hedland in the Pilbara region of Western Australia.
The solar array is an important demonstration of the Company’s 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 looks forward to continuing our 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.
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.
It is anticipated that procurement for the project will commence imminently with commissioning expected late July 2022, and commercial operation from the end of August 2022.
The installation of the first phase of the solar farm is just one part of the initial rationalisation of power assets at Pilgangoora, as we further integrate 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’ 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.
Release authorised by Ken Brinsden, Pilbara Minerals Limited’s Managing Director.
For further information:
Investors / shareholders
David Hann
Investor Relations Specialist
Ph. +61 (0)8 6266 6266
Media
Nicholas Read
Read Corporate
Ph. +61 (0)8 9388 1474
About Pilbara Minerals
Pilbara Minerals is the leading ASX-listed pure-play lithium company, owning 100% of the world’s largest, independent hard-rock lithium operation. Located in Western Australia’s resource-rich Pilbara region, the Pilgangoora Project and Operation produces a spodumene and tantalite concentrate. The significant scale and quality of the operation has attracted a consortium of high quality, global partners including Ganfeng Lithium, General Lithium, Great Wall Motor Company, POSCO, CATL and Yibin Tianyi.
While it continues to deliver a low-cost, quality spodumene to market, Pilbara Minerals is pursuing a growth and diversification strategy to become a sustainable, low-cost lithium producer and fully integrated lithium raw materials and chemicals supplier in the years to come.
Through execution of this strategy, Pilbara Minerals is positioned to become a major player in the rapidly growing lithium supply chain, underpinned by increasing demand for clean energy technologies such as electric vehicles and energy storage as the world pursues a sustainable energy future.
About Pacific Energy
Pacific Energy owns and operate around 40 power stations (with contracted capacity of over 550MW) through the KPS and Contract Power brands. They provide electricity to remote mines and townships as well as the National Electricity Market (NEM) using multiple fuel technologies including gas, diesel, dual fuel, hydro and renewables. Specialist hybrid solutions such as Stand-Alone Power Systems, microgrids and battery energy storage systems are provided for government utilities and private industry by Pacific Energy subsidiary Hybrid Systems Australia.
Sydney, NSW and Perth, Western Australia – 22 June 2021 – LAVO (the Company), an Australian technology and lifestyle company powered by hydrogen, and Hybrid Systems Australia (HSA), a West Australian company specialising in Build Own Operations (BOO) or Design and Construct (D&C) of remotely located hybrid renewable energy systems, today announced the signing of a Memorandum of Understanding (MoU) to determine and trial applications of LAVO’s hydrogen energy technology at HSA’s Kewdale facilities in Western Australia.
Hybrid Systems Australia specialises in the design, construction and installation of Integrated Hybrid Systems, which incorporates the use of Solar PV, Battery Storage and Backup Reciprocating Gas and Diesel Generation, suitable for remote off-grid applications such as homes, workshops, offices, control/monitoring systems, pumping stations, remote towns and mine sites.
Since its founding in 2015, HSA’s current and previous projects support the move toward the use of renewable energy. HSA works closely with partners to trial new technologies in real life installations, using data to determine applicability and effectiveness.
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, the trial will test the applicability of incorporating LAVO’s products into HSA’s suite of products in the longer term.
The demonstration project is expected to commence in July 2021, extending the reach of LAVO’s existing demonstration projects across Australia. Focused on providing a complete, versatile and sustainable solution to energy storage for the community, home and person, LAVO is ideally suited to partner with HSA.
Alan Yu, CEO and Executive Director of LAVO, commented: “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, also commented: “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.”
LAVO, which was launched in Australia in September 2020, has 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. The LAVO system is designed to be easily integrated with existing solar panel infrastructure, with the company exploring further applications for its patented metal hydride solution.
The pristine north-west tourism town of Coral Bay in Western Australia can be powered emissions-free when conditions are right thanks to a battery energy storage system (BESS) from Pacific Energy.
When weather conditions are favourable, the power needs of the community can be met entirely by three 275kW wind turbines working together with the 576kW battery. Pacific Energy's sophisticated control systems work to turn off all diesel power generation when renewable generation is sufficient, and then seamlessly re-engage it when required.
The Coral Bay project was awarded to Hybrid Systems Australia, Pacific Energy’s specialist integrated renewables subsidiary, by WA government-owned energy provider Synergy with works recently completed.
Hybrid Systems' scope of works included an initial control system upgrade at Synergy's power station to accommodate the integration of the BESS with the diesel and wind generation, in parallel with BESS procurement, factory acceptance testing, site installation and commissioning.
Hybrid Systems Australia Executive Director Mike Hall described the fully integrated wind-diesel-BESS facility at Coral Bay as a ground-breaking achievement. It was also a further demonstration of Hybrid Systems Australia's strength as a provider of reliable renewable power integration services to achieve significant emissions reductions for utility customers.
“We are very pleased to have been involved in this innovative project which met the objectives of Synergy and Horizon Power to reduce emissions and improve reliability for the town of Coral Bay through our integrated Lithium BESS solution," Mr Hall said.
“This project is also in line with our own business objective of providing the latest in energy technology to address the challenges experienced by regional and remote customers by delivering high penetration renewable energy solutions and at the same time improving reliability of supply. This project follows our own success at Tellus’ Sandy Ridge project where our microgrid can also power the entire facility in “hydrocarbons off” mode during daylight hours on a daily basis under a 15-year Power Purchase Agreement."
It also follows this year's award of five BESS units to Hybrid Systems across regional towns for WA regional power utility Horizon Power. Hybrid Systems will supply and install BESS at existing Horizon Power facilities in the towns of Carnarvon, Marble Bar and Yungngora, while fellow Pacific Energy subsidiary Contract Power's existing power purchase agreements with Horizon Power have been expanded to integrate BESS into Wiluna and Yalgoo, using Hybrid Systems' expertise.
Mr Hall noted work was also progressing well with Hybrid System's project to build Australia’s first renewable hydrogen energy plant in a remote microgrid for Horizon Power in the town of Denham in WA's Shark Bay World Heritage area.
Site works commenced in Denham this month with a sod-turning ceremony by Hydrogen Industry Minister Alannah MacTiernan and Horizon Power to accommodate the installation of the solar farm and commencement of works at the secondary site for the power infrastructure upgrades to accommodate the hydrogen and BESS installations.
Pacific Energy’s integrated renewables subsidiary, Hybrid Systems Australia (HSA), is committing to WA's future as a centre for renewable energy manufacturing with the announcement today of a new 16,000 square metre production facility in Perth Airport's industrial precinct.
The new facility is understood to be the largest in the world dedicated to the design and construction of sophisticated Stand-Alone Power Systems (SPS).
Hybrid Systems Australia has taken an initial 10-year lease at the airport's industrial precinct to house the purpose-built facility, which will step up its production capacity and to service expected requirements for SPS in the years ahead. It will also improve response times to natural disasters such as the recent bush fires and the cyclone that tore through much of the mid-West region and its infrastructure in April 2021.
The facility will house Hybrid Systems’ rapidly growing workforce of over 85 West Australian staff – up from 15 only one year ago – to design, build, operate and maintain the units. Hybrid System’s SPS units utilise world-class componentry, with all assembly conducted in-house. The company also performs all construction and testing onsite.
In a related move to bolster in-house capacity to service the growing demand for SPS in Western Australia, HSA has also agreed to purchase CPE Switchboards (“CPE”), a long-standing specialist supplier to the broader Pacific Energy group. Employing around 30 full time personnel, CPE will provide additional skills, facilities, equipment and human resources to HSA and take its personnel numbers to over 100.
The driving force behind increasing demand is Western Australian power utility Western Power. Western Power provides SPS units to customers in regional and remote locations to improve power reliability and quality as well as provide cost efficiencies. Each SPS consists of reliable renewable energy supply from solar panels, battery storage, an inverter and a backup generator. The customer is then able to draw power directly from their dedicated SPS, independent of the power grid.
In 2019, Western Power launched the first round of SPS installations with 52 fringe-of-grid customers and awarded HSA 49 of the units. HSA has now been awarded a further allocation of 60 SPS units, including 25 to assist in bringing power back to customers impacted by Cyclone Seroja, giving the company the confidence to make a long-term commitment to the new purpose-built manufacturing facility.
HSA was purchased by Australia's biggest off-grid power company, Pacific Energy, in May last year.
Pacific Energy Chief Executive Officer Jamie Cullen noted that Western Power’s modelling showed around 6,000 viable properties where SPS units could be installed in WA over the coming decades.
"This investment is a recognition that increasing energy decentralisation and decarbonisation pressures are going to drive demand for clean energy sources such as SPS and the bigger grid-connected Battery Energy Storage Systems (BESS)," Mr Cullen said.
"This is the biggest SPS manufacturing facility in the world as far as we are aware," he said.
"As a Perth-based national company this facility will also help us gear up to meet an estimated demand from Queensland of around 2,000 SPS units. As another big state, Queensland has the same issues as WA in terms of getting reliable power to remote customers at the edge of long power grids and the same consumer demand for renewable solutions."
Work on the new manufacturing facility was underway and due to be completed this year, he said.
Western Power CEO Ed Kalajzic said the business was proud to be leading the nation in the roll out of SPS, providing a greener energy future for the community and supporting Australian businesses.
“Like many electricity networks around the world, Western Power is looking at ways we can improve power reliability and quality and improve operational and cost efficiencies for the community,” he said.
“We’re increasingly using renewables and SPS provides a viable alternative to traditional poles and wires while realising commercial, social, and environmental benefits.
“Our modelling shows that through installing thousands of SPS over the coming decades we could avoid millions of dollars in traditional network build, deliver customer benefits and facilitate sustainable energy.”
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https://www.westernpower.com.au/community/news-opinion/funding-and-new-power-solutions-for-cyclone-seroja-recovery/
• Hybrid Systems Australia (HSA) is a West Australian company specialising in Build Own Operations (BOO) or Design and Construct (D&C) inclusive of all aspects of design, procurement, manufacturing, installation, commissioning and operations of remotely located hybrid renewable energy systems. This includes systems with varying combinations of Solar PV, Wind, Stand Alone Power Systems (SPS), Battery Energy Storage Systems (BESS), Hydrogen and back-up thermal generation.
• For more see www.hybridsystems.com.au or follow HSA's recent renewable energy integration projects on LinkedIn: https://www.linkedin.com/company/hybrid-systems-australia/posts/?feedView=all
• HSA is a subsidiary of the Pacific Energy group, which is itself owned by funds advised by QIC, formerly known as the Queensland Investment Corporation. See www.qic.com.au
For media comment please call Pacific Energy CEO Jamie Cullen (Perth) on +61 419 838 814
Pacific Energy Ltd subsidiary Contract Power Australia has signed a contract to build Western Australia’s largest network integrated Battery Energy Storage System (“BESS”) for Fortescue Metals Group (“Fortescue”) subsidiary Pilbara Energy (Generation) Pty Ltd.
Under the contract, Contract Power will design, construct, test, install and commission two BESS units as part of Fortescue’s integrated power network in Western Australia’s Pilbara region.
The BESS units will be integrated with a transmission network being built by Fortescue to distribute electricity from new gas and solar power facilities to Fortescue’s Pilbara mine sites.
This is the second major contract awarded to Contract Power by Fortescue as part of their Pilbara Energy Connect program and follows the award in July 2020 of a major contract to construct the gas-fuelled power station component of the project.
“We thank Fortescue for their continuing confidence and look forward to delivering a world class product, building on our relationship with Fortescue which reaches back to 2007,” said Pacific Energy Chief Executive Officer Jamie Cullen.
“This latest award is a significant endorsement of our Group’s capabilities and credentials across all forms of traditional and renewable generation, in both remote and network connected energy generation and storage”.
A large portion of the work will be performed by Pacific Energy owned subsidiary Hybrid Systems Australia. Executive Director of Hybrid Systems Australia, Michael Hall, said that the long-standing remote generation experience of Contract Power combined with Hybrid Systems’ industry leading BESS deployment and network integration expertise demonstrated the industry capabilities that exist within Western Australia and Australia to deliver world class projects.
He added, “Working with our key suppliers, Hitachi ABB Power Grids and Kokam, we will be bringing together key components from two highly regarded specialist equipment suppliers to deliver an end solution for Fortescue which will become the largest network connected BESS in Western Australia and is among the world’s largest to be developed for an industrial application.”
For media comment please call Pacific Energy CEO Jamie Cullen (Perth) on +61 8 9303-8888
Power generation specialist Pacific Energy Limited (“Pacific Energy”) is pleased to announce that its wholly owned KPS subsidiary has signed a contract to convert its 10MW diesel power station at Iluka Resources’ Jacinth Ambrosia mineral sands mine in South Australia to a hybrid facility.
The facility will also incorporate electric turbo compounding (“ETC”) technology, which 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.
KPS has operated the 10MW diesel power station at the Jacinth Ambrosia site since 2009. Under the new contract, which runs for an initial term of 7 years, KPS will:
• Install 3.5MW of solar power generation
• Integrate the solar array with the diesel power station
• Introduce ETC technology to each of the ten 1MW generators
ETC technology makes generators work more cleanly and effectively by recovering waste energy from the exhaust to improve power density and fuel efficiency.
Pacific Energy Chief Executive Jamie Cullen commented: “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 5½ thousand tonnes of CO2 per year, every year, for at least the next seven years”.
• Strandline executes 15-year electricity supply agreement with Contract Power Australia
• Contract Power to build, own, operate and maintain a 32MW hybrid gas and renewable energy solution for Coburn
• The agreement means Coburn will pay less for power than forecast in the Definitive Feasibility Study (DFS) published in June 2020
• Innovative low-cost, low-emission solution integrating gas-fuelled power generation with solar renewable energy and battery storage technology
Strandline Resources (ASX: STA) is pleased to announce another important step in its preparations to develop the Coburn mineral sands project in Western Australia by executing a 15-year Electricity Supply Agreement (ESA) with Contract Power Australia (Contract Power), a wholly owned subsidiary of Pacific Energy Limited.
Under the agreement, Contact Power will build, own, operate and maintain (BOOM) the power generation and LNG storage and regasification facilities for the project.
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 enables Strandline to capture energy supply cost savings relative to the DFS published in June 2020.
Contract Power specialises in turn-key design, installation and operation of energy assets and has a strong track record of delivery in the mining sector of Western Australia.
Coburn’s power station will be located near the mineral separation plant (MSP). The power station is designed to be suitable for a maximum demand capacity of 15 MW and average consumed power of ~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-vaporisation facility supplied by Contract Power. The LNG then feeds a set of efficient engine generators on an N+1 basis and has ~30% solar (renewable) penetration for the major stable loads.
Generation is at 11kV with step up to 22kV for power transmission to the project loads across the mine site.
The contract is based on a 15-year BOOM commercial model with fixed and variable payment regime for power consumed over the term. 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.
The contract is subject to conditions precedent regarding the development of the project.
Strandline Managing Director Luke Graham said the execution of this major development and operational contract marked another key step in our 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.
For more information on the Coburn mineral sands project refer to the ASX Announcement dated 4 June 2020 and 10 June 2020 (updated DFS), which includes details of the material assumptions underpinning the production target and financial results. The Company confirms that all material assumptions and technical parameters underpinning Resource Estimates, Production Targets and Project Feasibility Studies continue to apply and have not materially changed. This announcement is authorised for release by the Strandline Resources Board of Directors.
Contract Power is a leading specialist power station constructor and operator with over 30 years’ experience in remote power generation to mines and townships. The Company’s remote power generation solutions combine renewable energy and battery storage systems with traditional fuel technologies to create hybrid facilities that reduce carbon emissions and fuel consumption without compromising integrity or reliability. Refer website www.contractpower.com.au.
Strandline Resources Limited (ASX: STA) is an emerging heavy mineral sands developer with a portfolio of 100%-owned development assets located in Western Australia and within the world’s major zircon and titanium producing corridor in East Africa.
Strandline’s strategy is to develop and operate high margin, expandable mining assets with market differentiation and global relevance.
Strandline’s project portfolio contains high quality assets which offer a range of development options and timelines, geographic diversity and scalability. They include two zircon-titanium rich, ‘development ready’ projects, being the large Coburn Project in Western Australia and the Fungoni Project in central Tanzania, as well as a series of titanium dominated exploration projects spread along the highly prospective Tanzanian coastline, including the advanced and large scale Tajiri Project in northern Tanzania.
This report contains certain forward looking statements. Forward looking statements are only predictions and are subject to risks, uncertainties and assumptions which are outside of the control of Strandline. These risks, uncertainties and assumptions include commodity prices, currency fluctuations, economic and financial market conditions, environmental risks and legislative, fiscal or regulatory developments, political risks, project delay, approvals and cost estimates. Actual values, results or events may be materially different to those contained in this announcement. Given these uncertainties, readers are cautioned not to place reliance on forward looking statements. Any forward looking statements in this announcement reflect the views of Strandline only at the date of this announcement. Subject to any continuing obligations under applicable laws and ASX Listing Rules, Strandline does not undertake any obligation to update or revise any information or any of the forward looking statements in this announcement to reflect changes in events, conditions or circumstances on which any forward looking statements is based.
GALENA MINING LTD. (“Galena” or the “Company”) (ASX: G1A) announces that Abra Mining Pty Limited (“AMPL”), the joint-venture company for the Abra Base Metals Project
(“Abra” or the “Project”) has executed a Power Purchase Agreement (“PPA”) with Contract Power Australia Pty Ltd (“Contract Power”).
Under the terms of the PPA, Contract Power will build, own and operate an integrated hybrid power generation facility combining a 10MW natural gas fired power station, a 6MW solar array, 2MW of battery energy storage and a 900Kl LNG storage and regasification facility. Power will be purchased by Abra under the PPA for an initial term of 16-years (extendable).
Managing Director, Alex Molyneux commented, “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.”
A Western Australian-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. With the ability to incorporate the latest in diesel, gas, renewable and battery storage technologies, Contract Power seeks to optimise energy efficiency for its off-grid clients, whilst minimising carbon emissions. Contract Power has operated power stations around Australia under turnkey build-own-operate arrangements since 1999, and recent projects include: 56MW gas fired power station for Mineral Resources Limited’s Wodgina lithium project; 18MW gas fired station for Capricorn Resources’ Karlawinda project; 18MW gas and diesel power station at Wiluna Mining Corporation‘s Wiluna Gold project; and the currently under construction Esperance renewables hub consisting of a 22MW gas power station fully integrated with two 4.5MW wind turbines, 2MW of battery storage and 4MW of solar.
Contract Power’s Managing Director, Mr Leon Hodges stated that “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 unsubsidized basis.”
The PPA remains subject to the condition of AMPL proceeding to final investment decision for the Project.
The Board of Directors of Galena authorised this announcement for release to the market.
For further information contact:
77.28% owned by Galena, the Abra Base Metals Project (“Abra” or the “Project”) is a globally significant lead-silver project located in the Gascoyne region of Western Australia (between the towns of Newman and Meekatharra, approximately 110 kilometres from Sandfire’s DeGrussa Project).
Galena completed an outstanding definitive / bankable feasibility study (“FS”) (see Galena ASX announcement of 22 July 2019) for development of a mine and processing facility with a 16-year life producing a high-value, high-grade lead-silver concentrate containing approximately 95kt of lead and 805koz of silver per year after ramp-up. Based on a pre-development capital expenditure estimate of A$170 million, the FS modelled a pre-tax net present value for Abra (at an 8% discount rate) of A$553 million and an internal rate of return of 39%.1
Pacific Energy owns and operate around 40 power stations (with contracted capacity of over 500MW) through the KPS and Contract Power brands. They provide electricity to remote mines and townships as well as the National Electricity Market (NEM) using multiple fuel technologies including gas, diesel, dual fuel, hydro and renewables. Specialist hybrid solutions such as Stand-Alone Power Systems, microgrids and battery energy storage systems are provided for government utilities and private industry by Pacific Energy subsidiary Hybrid Systems Australia
The West Australian Government’s regional and remote power provider, Horizon Power, has awarded Pacific Energy’s specialist integrated renewables subsidiary, Hybrid Systems Australia, a contract to build Australia’s first renewable hydrogen demonstration plant in a remote power system, in Denham, Western Australia.
The hybrid solar and hydrogen power system will test the technical capability of hydrogen as a dispatchable power source in remote microgrids, in anticipation of the technology becoming cost competitive in the future.
Hybrid Systems, the integrated renewables division of Pacific Energy Ltd, will deliver a 704 kilowatt (kW) solar farm, 348 kW electrolyser, hydrogen compression and storage, and 100 kW fuel cell which will use renewable energy to power an electrolyser. This will produce hydrogen which can be stored for later use in a fuel cell to deliver electricity.
Hybrid Systems Executive Director Mike Hall said the Denham hydrogen demonstration plant was a ground breaking project which would build on the business’s extensive integrated renewables expertise and add another key future energy supply to the business’s portfolio.
“This is an exciting project which is taking the integration of renewables to the next level by creating green hydrogen to use as an electricity supply,” Mr Hall said.
“Projects such as Denham are crucial in supporting the growth and sustainability of the industry to a point where this new technology can become both technically and commercially viable.”
Construction of the plant will start in August 2021, with commissioning to commence in December.
Horizon Power’s Chief Executive Officer Stephanie Unwin said the appointment of WA company, Hybrid Systems to deliver a first of its kind green hydrogen power supply to Denham was another step towards Horizon Power meeting its target of no new diesel generation systems from 2025.
“The future deployment of hydrogen into Horizon Power’s regional and remote power systems will play a huge part in helping to deliver on our 2030 goal of achieving grid-based renewables across 100% of our systems,” Ms Unwin said.
“This is a world leading trial which aims to demonstrate a future energy solution which encourages greater uptake of greener energy sources.
“By creating opportunities to work with industry to trial emerging technologies such as hydrogen, we are helping to solve real-world challenges while also contributing to the broadening of industry’s knowledge and expertise.
“I also recognise the importance of investing in the local economy by utilising the services of local suppliers and contractors wherever possible.”
Hybrid Systems will engage with regional suppliers and contractors to support the delivery of the project.
This Project has received $2.6 million funding from the Australian Renewable Energy Agency (ARENA), as part of ARENA’s Advancing Renewables Program. A further $5.7 million has also been provided by the Western Australian Government as part of its Recovery Plan, this includes $1.0 million from the WA Renewable Hydrogen Fund.
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Notes to Editors:
Pacific Energy owns and operates around 40 power station facilities around Australia, with contracted capacity of approximately 400MW. These facilities provide electricity to remote mines and townships as well as the National Electricity Market (NEM) using multiple fuel technologies that include gas, diesel, dual fuel, hydro, wind and solar.
Specialist hybrid and renewable energy solutions such as Stand-Alone Power Systems, microgrids, battery energy storage systems (BESS) and hydrogen production and storage are provided by Hybrid Systems Australia, Pacific Energy’s integrated renewables division.
Horizon Power is the West Australian Government’s regional and remote power provider. We are passionate about what we do, and strive to ensure our customers receive safe and reliable power to their homes, businesses and communities.
Spanning some 2.3 million square kilometres, this makes us responsible for the largest geographical catchment of any Australian power provider.
We operate 38 power systems delivering power to more than 110,000 homes, communities and businesses. This includes 34 microgrids tailored to meet the unique needs of some of the most isolated and remote communities in the world.
Horizon Power is making significant investments in developing its renewable energy capability and expertise. It currently has a number of initiatives underway exploring new and innovative ways of providing our customers with more sustainable, affordable power.
For more information visit www.horizonpower.com.au.
For media comment please call Pacific Energy CEO Jamie Cullen (Perth) on +61 8 9303-8888
Tellus’ Sandy Ridge Facility achieved an industry first this week with micro grid developer Hybrid Systems Australia (Hybrid Systems) certifying the Facility as being 100% powered by renewable energy during daytime operations.
This news bolsters Tellus’ growing reputation as an innovator and leading environmental services provider focused on cleaning up Australia of hazardous waste. This milestone is the result of a 15-year power purchase agreement signed between Tellus and Hybrid Systems in late 2019. The achievement is believed to be a first for remote mining operations in Australia.
Chief Development Officer, Steve Hosking, said the news provides further evidence of Tellus' leadership in environmental sustainability and innovation.
“Tellus is proud to be a part of yet another innovative solution that is good for our communities and the environment. Our agreement with Hybrid Systems provides Tellus with long-term certainty for renewable power supply, reducing the reliance on diesel fuel and significantly reducing unit costs,” he said.
The system at Sandy Ridge combines a 2MW diesel power station, 1.2MW of solar and a 350kWh Samsung lithium-ion battery, with an ABB inverter delivering a microgrid that can power the entire facility “hydrocarbon free” during daylight hours.
Hybrid Systems' Executive Director Mike Hall said, “Running 100% solar for the majority of sunlight hours every day is an Australian first for a remote processing facility as far as we know. Inherently there's usually a back-up generator running no matter what level of renewables penetration there is on a site. It's a milestone we've achieved thanks to a lot of in-house innovation producing a very smart microgrid control system.”
The Sandy Ridge system and energy management software was developed by Hybrid Systems in-house and delivered locally in Western Australia. Only the solar panels, battery and inverter were outsourced.
Tellus CEO Nate Smith said the partnership with Hybrid Systems was strongly aligned to its core purpose.
“We are committed to cleaning up Australia of hazardous waste and to achieving that while reducing our environmental impact. Accordingly, in developing Sandy Ridge we prioritised renewables as a power source and are proud of this achievement and our successful partnership with Hybrid Systems. Our team will continue to find ways to improve sustainability, particularly with our renewed focus on the circular economy”, Tellus’ CEO, Nate Smith said.
Tellus is an innovative environmental services business focused on cleaning up Australia of hazardous waste. We do this by operating and developing a portfolio of geological repositories and reinvesting in our communities through the circular economy.
Hybrid Systems Australia (see http://www.hybridsystems.com.au) provide specialist hybrid solutions such as Stand-Alone Power Systems, microgrids and battery energy storage systems for Government utilities and private industry as a wholly-owned subsidiary of Pacific Energy Pty Ltd.
QIC acquired former ASX-listed Pacific Energy Ltd (ASX: PEA) in November 2019. Brisbane-based QIC, formerly known as Queensland Investment Corporation, is a global diversified alternatives investment manager with over A$83 billion in assets under management and over 1,000 staff. Further details at www.QIC.com.
With over 550MW of contracted capacity, our broad experience incorporates the following fuel technologies, asset classes and services:
Construction and operation of islanded power and storage solutions for mines and townships
website +61 8 9453 3375
Design, construction and operation of integrated grid-connected and remote renewable energy systems and storage
website +61 8 9359 2900
Design and manufacturer of switchrooms, switchgear, BESS enclosures and related equipment and services
website +61 8 6186-9516
Contact Us: call +61 8 9303 8888 or email info@pacificenergy.com.au
Head Office: 338 Gnangara Road, Landsdale, WA 6065
Postal Address: PO Box 5. Kingsway WA 6065
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