Energy firm Pilot Energy, which is transitioning from oil and gas exploration, has announced a non-binding proposal from EDP Renewables APAC for the complete acquisition of its 376MW Three Springs solar farm project in Western Australia. The offer stands at AU$ 11.5 million (approximately USD 7.8 million) for the substantial renewable energy development.
Powering a Green Ammonia Hub
The Three Springs facility is a cornerstone of the larger Mid-West Clean Energy Project, an ambitious initiative designed to position Western Australia as a major producer of green hydrogen and ammonia. The solar plant is slated to provide the necessary renewable power for an ammonia production facility located about 100km to its west, connected via a private mid-voltage transmission network. This large-scale project aims to produce and export 1.2 million tonnes of clean ammonia annually to both international and domestic markets, with operations targeted to begin in 2027. The energy strategy for the hub relies on a mix of wind and solar power generation delivered through the grid, with the potential to also supply external customers.
Project Scope and Strategic Funding
Located in the Shire of Three Springs, about 310 kilometres north of Perth, the solar PV project carries an estimated total development cost of AU$ 440 million. It is designed for a 25-year operational lifespan, maintaining 90% of its original capacity throughout that period, after which the site could be decommissioned and restored.
According to Pilot Energy Chairman Brad Lingo, the proposed sale represents a significant milestone for the company. “The proposed sale is a great result for the company, which will provide significant capital to progress the Cliff Head Carbon Storage Project and the acquisition of the Cliff Head joint venture interests while also accelerating the development of renewable energy sources in the Mid-West to power the Mid-West Clean Energy Project,” Lingo stated.
A Transition to Clean Energy and Carbon Management
This transaction underscores Pilot Energy’s strategic pivot towards carbon management and clean energy production. The company intends to leverage its existing oil and gas infrastructure to support its new focus on hydrogen and clean ammonia for export to emerging APAC markets. A key component of this strategy is the proposal to create Australia’s first offshore carbon storage facility by converting the Cliff Head Oilfield. Pilot is in the process of consolidating its ownership of the Cliff Head assets to 100% and holds full interest in adjacent offshore greenhouse gas exploration licenses, further cementing its transition into the clean energy sector.
Pilot Energy Receives Offer for Three Springs Solar Plant: Sources
- ASX Announcement: Offer for Three Springs Solar Project
- Pilot Energy receives $11.5m acquisition offer for Three Springs
- Spanish renewables company to buy Three Springs solar farm
- Pilot Energy receives offer for 376MW solar site in Western Australia
