Pilot review identifies transformative extra carbon storage in WA

Pilot Energy has identified an extra 27 million tonnes of carbon storage capacity at its Cliff Head carbon storage project, in Western Australia’s Mid West region, following recent technical assessments by the company’s sub-surface consultant, CO2Tech.

CO2Tech undertook the review of Pilot’s WA 31-L licence area in anticipation of the next phase of regulatory approvals for the Cliff Head project, increasing the best-estimate 2C/P50 storage resource from its previous capacity of 45.6mt to 72.2mt. The assessment represents a 58 per cent increase on the previous July 2024 2C contingent storage resource.

The further expansion of the Cliff Head carbon storage resource to 72 million tonne capacity is a very positive outcome for Pilot and our goal to build a project that can materially contribute to decarbonising major West Australian industries. A major carbon storage project in the Mid West is also a key component in unlocking the enormous potential for low carbon iron and steel processing in the region given its significant high-grade magnetite iron resources.

CO2Tech’s assessment of the storage resource includes some key features not included in a previous storage resource analysis, including reinterpreting the cement facies and accurately representing the shale barriers. The geologically significant High Cliff sandstone formation was also reinterpreted as three sequences instead of the previous two, changing the facies modelling, porosity and permeability assumptions.

Pilot possesses the entire Cliff Head production history from initial production through to its cessation in August 2024, which is of massive value to the company’s ongoing project modelling.

The extensive database will enable Pilot to calibrate a dynamic model for the reservoir over its full project life-cycle. The company expects the additional data will result in more refined and accurate estimates of Cliff Head’s carbon dioxide storage capacity.

Pilot will now need to amend the necessary storage formation declaration for Cliff Head prior to proceeding with an injection licence application to include the upgraded resource.

The company will use the revised models to support its amended application by demonstrating the viability of its storage formation under an expanded development concept.

Pilot’s proposed development plan associated with the contingent resources is based on a potential injection rate of between 2.5mt and 2.8mt per annum for the Cliff Head/Mentelle resource and also includes refinements accounting for the revised static and dynamic models.

Pilot’s upgraded carbon storage resource and injection capacity at Cliff Head is significant for both the company and the Mid West region.

It will be incorporated into the database for the Mid West Clean Energy Project, now in its early stages, which aims to produce clean ammonia from blue and green hydrogen, permanently store carbon dioxide, develop a natural gas reforming process in the region and leverage renewable energy resources.

Pilot says it hopes this latest development at Cliff Head will help it advance towards its goal of building a project that can materially contribute to decarbonising WA industries, such as alumina refining, ammonia and fertiliser production and cement.

Is your ASX-listed company doing something interesting? Contact: matt.birney@wanews.com.au