Westgold signs gas and renewable energy agreements with Pacific Energy, CEFA
Posted by Daniel Gleeson on July 11, 2022
Westgold Resources, in line with its continued goals of improving profitability and focusing on cost optimization, has signed a new power purchase agreement with independent power supplier Pacific Energy and a new LNG supply with Clean Energy Fuels Australia (CEFA).
These agreements will deliver substantial operating cost savings to Westgold in its 2023-2024 fiscal years of approximately $100 A/oz ($68/oz) at current diesel prices and support its commitment to initiatives environmental, social and governance (ESG) standards that will reduce the company’s long-term greenhouse gas emissions, he said.
Under the build-own-operate agreement with Pacific Energy, Westgold will significantly reduce diesel consumption by replacing six diesel power plants with four new, highly efficient gas-fired power plants to incorporate renewable energy options and utilize solar power and battery storage through the Bryah and Murchison operations. Critical for Westgold, this transition to a mixed generation platform includes renewables and gas and is expected to reduce carbon emissions from diesel generators by more than 57%, due to the higher integration of renewables (34 % solar) and cleaner fuels (gas vs. diesel), the company said.
Westgold’s first new Pacific Energy power plant will be commissioned in July 2023 at the Tuckabianna Processing Center, with the three additional new plants to be commissioned from September 2023.
Westgold has simultaneously signed a bulk LNG supply agreement with CEFA. CEFA will supply Westgold from its expanded LNG plant at Mt Magnet (pictured), 80km south of Cue. This plant currently supplies LNG to another Pacific Energy power plant in the Murchison area and offers a substantial advantage due to its proximity to Westgold operations. CEFA will finance and build satellite LNG facilities (mainly comprising LNG storage and regasification equipment) at Westgold’s project sites, with LNG transported directly by truck from its Mt Magnet plant.
The new gas and solar power station to be commissioned at Westgold’s Meekatharra operations will also serve to simplify power generation by removing small diesel power stations from the Paddy’s Flat and Bluebird underground mines and supplying them with electricity. energy from a larger gas-fired power station via overhead. power lines, according to the company.
Westgold Chief Executive Wayne Bramwell said: “The transition to a cleaner, more efficient energy platform that uses renewables and gas in fiscal year 2023 is strategic for Westgold. This is an important step to achieving our ESG goals, but essential to reducing the costs of operating our business.
“Westgold has selected two industry leaders, Pacific Energy and CEFA, to work with us in this transition and we look forward to seeing the benefits that the integration of renewable energy and cleaner energy alternatives can bring to our business and the communities in which we operate.