New agreements for Westgold Resources are set to turn its diesel-fired power stations into gas-fired stations with renewables options across its Bryah and Murchison Operations to reduce carbon emissions and operational costs.
Westgold Resources’ has signed a Electricity Purchase Agreement with independent power provider Pacific Energy, and its new LNG Supply Agreement will see the company partner with Clean Energy Fuels Australia (CEFA).
These agreements will deliver substantial operating cost savings to Westgold in financial year 2023-24 onwards of ≈$100/oz at the current diesel price and will support its commitment to environmental, social and governance (ESG) initiatives that will reduce Westgold’s long-term greenhouse gas emissions.
Electricity Purchase Agreement with Pacific Energy
Under this build-own-operate agreement with Pacific Energy, Westgold will materially reduce diesel consumption by replacing six diesel-fired power stations with four new, highly efficient gas-fired power stations which will incorporate renewable energy options and utilise solar power and battery storage across the Bryah and Murchison Operations.
Critically for Westgold, this transition to a mixed generation platform includes renewables and gas and is expected to reduce carbon emissions from diesel-powered generators by over 57 per cent, due to the higher integration of renewables (34 per cent solar) and cleaner fuel (gas versus diesel).
Westgold’s first new Pacific Energy power station will be commissioned in July 2023 at the Tuckabianna processing hub, with the three additional new power plants scheduled for commissioning from September 2023.
LNG supply agreement with CEFA
Westgold has concurrently signed a bulk LNG supply agreement with CEFA. CEFA will supply Westgold from its expanded LNG Plant located at Mt Magnet, 80km south of Cue.
This plant is currently providing LNG to another Pacific Energy power plant in the Murchison region and provides a substantial advantage due to its close proximity to Westgold’s operations. CEFA will fund and construct satellite LNG facilities (primarily comprising LNG storage and regasification equipment) at Westgold’s project sites, with the LNG trucked direct from its plant at Mt Magnet.
The new gas and solar power station to be commissioned at Westgold’s Meekatharra operations will also serve to simplify power generation by removing smaller diesel-fired power stations at Paddy’s Flat and Bluebird underground mines and providing it power from a larger gas-fired power station via overhead powerlines.
Westgold’s Managing Director, Wayne Bramwell, said the transition to a cleaner, more efficient energy platform that utilises renewables and gas in FY22-23 is strategic for the company.
“It is an important step in meeting our ESG targets but is pivotal to reducing the operating cost of our business. Westgold has selected two industry leaders in Pacific Energy and CEFA to work with us in this transition and we look forward to seeing the benefits that integrating renewable power and cleaner energy alternatives can deliver to our business and the communities within which we work.”