Westgold Resources Signs New Power Purchase Agreement
Westgold Resources has signed a new electricity purchase agreement with Pacific Energy and a new LNG supply agreement with Clean Energy Fuels Australia (CEFA).
The agreements support the company's commitment to environmental, social, and governance (ESG) efforts that will lower its long-term greenhouse gas emissions by delivering substantial operating cost savings of approximately $100 per ounce (at the current diesel price) beginning in the financial year FY24.
Under the build-own-operate agreement with Pacific Energy, Westgold will reduce diesel consumption by replacing six diesel-fired power stations with four new, highly efficient gas-fired power stations that will incorporate renewable energy options and utilise solar power and battery storage across the Bryah and Murchison operations in Western Australia.
Importantly for Westgold, this shift to a mixed generation platform, which incorporates renewables and gas, is anticipated to lower carbon emissions from diesel-powered generators by over 57% due to greater incorporation of renewables and cleaner fuel.
The first of Westgold's four new Pacific Energy power plants will be commissioned in July 2023 at the Tuckabianna processing hub, while the next three will be commissioned in September 2023.
Meanwhile, CEFA will provide Westgold with natural gas from its expanded Mt Magnet facility.
This project is now supplying LNG to another Pacific Energy power plant in the Murchison region, and its proximity to Westgold's operations gives it a significant competitive advantage.
CEFA will fund and build satellite LNG facilities (mainly consisting of LNG storage and re-gasification equipment) at Westgold's project locations, with LNG transported directly from Mt Magnet.
The new gas and solar power station installed at Westgold's Meekatharra operations will also simplify power generation by removing smaller diesel-fired power stations from Paddy's Flat and Bluebird underground mines and providing them with power from a more giant gas-fired station via overhead powerlines.
Westgold managing director Wayne Bramwell stated that the company's move to a cleaner, more efficient energy infrastructure based on renewables and gas in FY23 was strategic.
“It is an important step in meeting our ESG targets and is pivotal to reducing the operating costs of our business,” he said.
Source: Australian Mining