US infrastructure investor I Squared Capital has acquired Perth-based Clean Energy Fuels Australia, the developer of the Mount Magnet LNG production hub.
I Squared Capital plans to invest up to A$500 million ($385m) into an “energy transition platform” aimed at slashing emissions of energy intensive industries in Australia, CEFA said on Tuesday.
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.
Moreover, the platform will offer an integrated solution to remote mining customers to meet their energy needs, it said.
This will include end-to-end logistics for LNG for power generation and solutions for utilising LNG in place of diesel for heavy mine haul vehicles, CEFA said.
In addition, the investment includes re-deployable solar solutions which can adapt with the requirements of mining operations with shorter mine lives, and the transition towards green hydrogen.
Mount Magnet LNG hub
The first major project will be the LNG hub, located in WA’s Mid-West region near the town of Mount Magnet, about 300 kilometres east of Geraldton.
To remind, CEFA secured a long-term site lease for the hub in September last year.
The hub will supply LNG as fuel to generate electricity for mines and remote communities across the region, providing an alternative to diesel with reduced energy costs and lower emissions, CEFA said.
CEFA plans to build the hub in stages including the first liquefaction train, customer storage, but also regasification facilities. It will have a production capacity of up to 100,000 tonnes of LNG per annum, with first production scheduled for the third quarter of this year.
Furthermore, CEFA has also secured a site in Port Hedland, which will serve as its second LNG hub.
Across these hubs, the firms aims to build a cumulative production capacity of up to 200,000 tonnes of LNG per year.