Technology development and engineering growth company, Synertec Corporation Limited (ASX: SOP) has achieved a number of key developments in relation to the commercialisation of Powerhouse, a unique proprietary technology that allows the utilisation of 100% renewable energy through predictive intelligence to power industrial-scale applications in remote locations.
Highlights
- Synertec and Santos Limited have further developed the Goods and Services Contract (GSC) that outlines the key commercial terms beyond the prototype and reference point for potential future roll-out of Powerhouse units with Santos
- Santos has issued an initial commercial Purchase Order under the GSC for the Powerhouse unit installed at Myalla (the current commercial-scale field trial site) with the term commencing on 1 April 2023
- The initial commercial Purchase Order comes after successful deployment of the Powerhouse unit to site for commercial scale field trials. Key developments during this phase of testing include:
- Successful operation through a number of extreme weather events, delivering over 90-days of reliable emission-free 100% renewable power supply
- Enabled the replacement of fossil-fuelled generators and reduction in carbon emissions
- Demonstrated a significant reduction in costs for the field owner
- Gas previously used to fuel the generators is now directed into the Australian gas network, increasing revenue for the field owner
- This commercialisation milestone also signals completion of this field trial phase
- Synertec continue to support Santos in working towards a large-scale commercial roll-out of Powerhouse units across its extensive operations
- Synertec continue to identify and progress further opportunities for the application of the Powerhouse system across the energy, mining and other sectors, both in Australia and the USA
It has been exceptionally rewarding to see Powerhouse deliver such robust operational performance, through a multitude of extreme weather events, during the commercial scale field trial,” Synertec Managing Director, Michael Carroll, said.
“The performance of Powerhouse’s predictive intelligence system has ensured that the remote site has reliable, 100% renewable power, underpinning the technology’s ability to provide base-load power to remote sites at substantially lower operating cost for the operator.
“Synertec and Santos have been working collaboratively towards this milestone for almost two years and it is pleasing to see Santos place an initial commercial purchase order and agree commercial terms under the GSC, which allows the parties to develop an accelerated roll-out strategy for potential future orders of Powerhouse units. We will continue to progress a procurement plan with Santos to meet their operational requirements.
“More broadly, the large target market we see for Powerhouse across both domestic and international remote sites requiring reliable base-load 100% renewable power provides a significant growth opportunity for Synertec and one that has the potential to significantly elevate our financial profile in the coming periods.”
Next Steps
The parties continue to progress discussions for large-scale commercial roll-out of Powerhouse to other Santos-operated sites across its extensive operations. Both parties are targeting H2 FY23 for this development.
Synertec will implement the valuable learnings from this field trial in future applications, which will also facilitate scalable and efficient production of the system.
