A syndicate of sophisticated investors has agreed to inject $3.5 million into Pilot Energy (ASX:PGY) to progress the company’s flagship Mid West Clean Energy Project (MWCEP) in Western Australia.
The syndicate is being led by Greg Columbus, a director of Discovery Investments Pty Ltd and current Non-executive Chairman of Talon Energy. This is the second time this investor syndicate led by Columbus has participated in the issue of convertible notes in 2023.
The six binding convertible notes will be issued in two tranches. The first five notes will be issued to members of the investor syndicate and will be for a total value of $1 million. The remaining convertible note is for a face value of $2.5 million and will be issued to Discovery Investments Pty Ltd (as lead of the investor syndicate).
The funding will provide ongoing development capital to progress Pilot’s flagship Mid West Clean Energy Project (MWCEP), including the CO2 Storage Project FEED and pre-FEED preparatory work for the broader MWCEP.
The MWCEP is a clean ammonia export project aiming to produce up to 1.2 million tonnes per annum of clean ammonia from 220,000 tonnes per annum of hydrogen production, with a targeted production start date of 2027.
The project includes a fully integrated CCS operation through the conversion of the operating Cliff Head offshore oil field. Carbon capture and storage enables the production of blue hydrogen with the proposed hydrogen production technology integrating the production of green hydrogen and ammonia. The project would be designed to incorporate the supply of hydrogen into the Western Australian domestic market.
The CCS development aims to provide over one million tonnes per annum of permanent carbon capture and storage starting in early 2026 capturing both third party industrial CO2 emissions as well as around 99% of any CO2 generated by the MWCEP.
