Thursday 4 November 2021

Warrego has joined a consortium of energy and infrastructure companies to undertake a feasibility study for the innovative Mid West Blue Hydrogen and CCS project in Western Australia

• Consortium comprises APA Group, Pilot Energy and Warrego, with member companies contributing funding and sector expertise

• Genesis, Technip Energies and RISC Advisory engaged to provide leading edge technical input and third-party evaluation

• Potential to deliver cost-effective and competitive clean energy

Warrego Energy Limited (“Warrego” or the “Company”) (ASX: WGO) today announced it has joined a consortium of energy and infrastructure companies to undertake and jointly fund a feasibility study for the Mid West Blue Hydrogen and CCS project.

The feasibility study led by Pilot Energy Limited is designed to assess potential Blue Hydrogen and CCS projects that can integrate with existing upstream, midstream and downstream assets to deliver competitive clean energy. It will identify and select potential development projects and will form the basis for future FEED studies, partnering and other corporate initiatives. The feasibility study is anticipated to complete in the first quarter of CY 2022.

Blue Hydrogen and CCS projects require expertise and collaboration from across the energy industry which is well represented by the consortium members:

• APA Group – Infrastructure

• Pilot Energy – Carbon Management

• Warrego Energy – Natural Gas Supply

Warrego’s CEO Australia, David Biggs, said:

“The Mid West Blue Hydrogen and CCS project has the potential to deliver significant and lasting positive benefits for the energy sector in Western Australia by reducing total emissions, generating clean energy, and creating new revenue streams.

“These technologies have the potential to add considerable value to Warrego’s business in the future through the positive effects of carbon management and emissions reduction.

“We are very pleased to be partnering with APA Group and Pilot Energy to deliver the feasibility study for this exciting and innovative project.”

The consortium will participate in and jointly fund the feasibility study which will focus on Blue Hydrogen technology, regional CCS potential, hydrogen markets, project infrastructure and commercialisation. Pilot Energy will also undertake a standalone assessment of the Cliff Head offshore and onshore facilities to determine its CCS potential and provide data on potential CO2 injection rates and storage capacity.

Pilot Energy has previously completed pre-feasibility screening of the CCS potential of the Cliff Head assets with RISC Advisory which indicated that the Cliff Head onshore and offshore infrastructure could provide carbon geo-sequestration of approximately 500,000 tonnes per annum of CO2 for a period of 13- years at an injection cost of approximately $16/tonne of CO2 and be fully operational by 2025.

The consortium arrangements set out a process for further joint participation in progressing towards project development following completion of the Feasibility Study.