Pilot Energy (ASX: PGY) has entered into a binding joint development agreement (JDA) with Capture6 Corp for the phased development of the latter’s direct air capture technology (DAC) at Pilot’s Mid West Clean Energy Project (MWCEP) in WA.
The first activity under the JDA is a demonstration of Capture6’s water processing and DAC technology which will be deployed in 2025 within the existing Arrowsmith site.
Successful demonstration of the technology will potentially reduce the net cost to treat water from future MWCEP carbon storage operations and provide Pilot a potential future revenue stream from the sale of carbon removal credits.
Under the JDA, and with the support of the $6.5m Commonwealth Carbon Capture Technologies Program grant (CCTP), Pilot and Capture6 will initiate ‘Project Wallaby’ on a joint venture basis (20% Pilot, 80% Capture6).
Project Wallaby includes four phases aligned with the development of Pilot’s MWCEP. The Capture6 demonstration facility will be deployed at Pilot’s Arrowsmith site. The existing Cliff Head operations team will assist with the project management, controls and onsite activities to prepare, construct and operate the facility.
- 2025: Phase 1 - Demonstration stage.
- 2026: Phase 1a – Expansion to facilitate revenue generation by targeting water sales, low carbon chemicals and high purity carbon dioxide sales.
- 2028/29: Phase 2 – Full scale deployment to manage approximately ~ 2 giga litres of water produced during carbon storage operations. Targeting up to 80,000 tonnes per annum DAC atmospheric carbon removal.
- +2030: Phase 3 – Expanded DAC targeting 350,000 tonnes per annum atmospheric carbon removal with further scaling potential.
The majority of the year 1 expenditure for Project Wallaby will be drawn from the initial $3 million CCTP grant funds Pilot received in August 2024.
Separately, during the first year of grant funding, Pilot will complete feasibility studies on the carbon supply chain with emitters across Western Australia, encompassing the infrastructure from the source of emissions through to delivery at Cliff Head.
“The Joint Development Agreement marks an important step in our progress at the MWCEP enabling our pilot project with Capture6,” Pilot’s chairman, Brad Lingo, said.
“The world-leading technology Capture6 can bring to the MWCEP can materially reduce the cost and environmental impact of the MWCEP’s water handling system. It has also demonstrated the potential to generate revenue from the future sale of carbon removal credits and by-products, which may include hydrogen.
“We’re thrilled to be partnering with Capture6, which is working with large organisations across the globe to build viable carbon removal solutions at scale to support sustainable growth.”
