EDP Renewables APAC Takes Over Three Springs Solar Power Plant

Pilot Energy has received a letter of intent from EDP Renewables APAC for the acquisition of the Three Springs solar power plant in Western Australia. The offer amounts to a total of 11.5 million AUD, to be made in several staggered payments. However, the final agreement is still pending. The 376-megawatt solar project, located 310 kilometers north of Perth, is a key component of the Mid-West Clean Energy Project in Western Australia. This project aims to enhance the production of green hydrogen and ammonia in the region. The construction of the Three Springs solar power plant is estimated to cost 440 million AUD, with an expected operational duration of 25 years, after which it is projected to retain 90% of its capacity. There is an option to decommission the plant later and return the land to its original state. The sale aligns with the goal of the Mid-West Clean Energy Project to produce 1.2 million tonnes of clean ammonia annually by 2027, utilizing renewable energy from solar and wind power. Pilot Energy, which halted trading ahead of the announcement, indicated that the proceeds from the sale could be invested in alternative power sources for the green ammonia project. The planned transmission network is intended to connect the solar power plant with the ammonia production facility located 100 kilometers to the west, and to serve external customers as well. Additionally, the broader Mid-West Clean Energy Project includes plans for Australia's first offshore CO2 storage facility, expected to store over 1 million tonnes of CO2 annually from 2026. The completion of the transaction between Pilot Energy and EDP Renewables APAC is anticipated by the end of 2024, subject to review and a final asset sale agreement. Pilot Energy Chairman Brad Lingo emphasized the significance of the offer for progress in the Cliff Head carbon storage project and the acquisition of the Cliff Head joint venture interests, as well as the accelerated development of renewable energy sources in the Mid West.