I Squared Capital commits $500 million to build Energy Transition Platform in Australia
Clean Energy Fuels Australia (CEFA) has been acquired by global infrastructure fund I Squared Capital (ISQ) paving the way for the development of an Energy Transition Platform focused on reducing the carbon footprint of energy intensive industries in Australia.
ISQ and CEFA have announced plans to invest up to $500 million on assets providing low-carbon and renewable solutions.
The initial focus will be on the Western Australian mining sector, which currently consumes 4.8 billion litres of diesel per year to meet its needs for power generation and locomotive needs.
The Energy Transition Platform will offer an integrated solution to remote mining customers to meet their evolving energy needs. This will include end-to-end logistics for Liquefied Natural Gas (LNG) for power generation, innovative solutions for utilising LNG in place of diesel for heavy mine haul vehicles, re-deployable solar solutions which can adapt with the unique requirements of mining operations with shorter mine lives, and the transition towards green hydrogen.
The Energy Transition Platform’s first major project will be the Mid-West LNG Hub, located at Mount Magnet, approximately 350 kilometres East of Geraldton in regional WA. The Hub, which will supply LNG as a lower emission fuel to generate electricity for mines and communities across the region, is the first significant project approved under new Western Australia State Government planning reform legislation supporting economic recovery from COVID-19.
The Mid-West LNG Hub will be built in stages and will have a production capacity of up to 100,000 tonnes of LNG per annum, with first LNG production scheduled for the third quarter of 2021.
CEFA has also secured a site in Port Hedland, which will serve as its second LNG Hub.
Across these hubs, CEFA aims to build a cumulative production capacity of up to 200,000 tonnes of LNG per annum.
The development of the Mid-West LNG Hub will boost the local economy by creating long term jobs, providing opportunities for local residents to develop new skills, improve the competitiveness of existing business, and unlock other development opportunities in the region.