Pilot, Samsung C&T sign MoU for Aussie CCS, ammonia project
SUMMARY
The Mid West Clean Energy project is located in Western Australia.
By Shardul SharmaPilot Energy and Samsung C&T Corporation Engineering & Construction Group have entered into a non-binding, conditional memorandum of understanding (MoU) in relation to the development of the Cliff Head CCS project and the ammonia project, collectively known as the Mid West Clean Energy project, Pilot announced on October 31.
Under the MoU, Pilot and Samsung C&T will jointly progress and fund the development of the Mid West Clean Energy project, on the basis of each party's respective participating interest. Subject to key conditions being satisfied, Samsung C&T will acquire a 20% participation interest in the Mid West Clean Energy project, act as the EPC contractor for the clean ammonia project and arrange for clean ammonia offtake for export to Korea
Pilot will receive consideration of circa A$67mn from the new joint venture company at financial close, which is based on historical construction costs of the Cliff Head oil project, the foundation assets for the Mid West Clean Energy project.
Brad Lingo, Chairman of Pilot, said, "Samsung C&T's participation is an important step as they provide additional technical expertise and financial strength to ensure the successful development of this exciting Western Australian clean energy project."
Earlier in the year, Lingo told GasPathways that Pilot expects to start the Cliff Head CCS project by late 2025 or early 2026.
