Oil and gas exploration company Pilot Energy Ltd has received a non-binding offer to sell its stake in a 376-megawatt (MW) solar project aimed at facilitating green ammonia production in Western Australia.
The proposal, valued at AUD 11.5 million (USD 7.8 million / EUR 7.1 million), was made by EDP Renewables APAC, according to a filing by Pilot Energy on Wednesday.
The Three Springs Solar project is designed to generate power for the production of low-carbon ammonia as part of the Mid West Clean Energy Project.
The proposed divestment will provide Pilot Energy with funds that can be reinvested into newly identified locations for sourcing electricity for the green ammonia initiative. The company has already pinpointed opportunities for power generation closer to the proposed ammonia project site.
The Mid West Clean Energy Project aims to produce up to 1.2 million tonnes of clean ammonia per year starting in 2027.
It also includes plans for Australia's first offshore carbon capture and storage (CCS) site, which is expected to offer over 1 million tonnes annually of permanent carbon capture and storage capacity by utilizing existing oilfield infrastructure, beginning in early 2026.
Pilot Energy anticipates concluding the sale by the end of this year, with the transaction contingent upon the completion of due diligence and the signing of a definitive asset sale agreement.
