- Strandline Resources (STA) has executed a 15-year electricity supply agreement with Pacific Energy subsidiary Contract Power Australia
- Contract Power will build, own, operate and maintain gas and renewable energy solutions at Strandline’s Coburn mineral sands project
- These solutions will consist of power generation, LNG storage and re-gasification facilities for the Western Australian project
- This agreement will allow the Coburn project to pay less for power than forecast in its 2020 definitive feasibility study
- Strandline Resources is up 1.96 per cent and trading at 26 cents per share
Strandline Resources (STA) has executed a 15-year electricity supply agreement with Pacific Energy subsidiary Contract Power Australia.
Contract Power is a leader in designing, constructing, installing and operating specialist power stations for sustainable clean energy generation in Western Australia.
Under the agreement, Contract Power will build, own, operate and maintain hybrid gas and renewable energy solutions at Strandline’s Coburn mineral sands project. These solutions will consist of power generation, LNG storage and re-gasification facilities for the Western Australian project.
The proposed power infrastructure solution will integrate natural gas-fuelled generation with state-of-the-art solar and battery storage technology.
The power station for the Coburn project will be situated near its mineral separation plant and will be suited to a maximum demand capacity of 15 megawatts.
Strandline will enter into an industry-standard long-term LNG supply agreement with another party for the supply of natural gas. This natural gas will then be trucked to an on-site storage and re-vaporisation facility supplied by Contract Power.
The contract between Strandline and Contract Power also provides for the incorporation of wind turbine and other new generation technology solutions. This integration will incur if and when those solutions become commercially attractive to the Coburn project.
Strandline Resources’ Managing Director, Luke Graham, considers the execution of the contract to be another key step in the company’s strategy to bring Coburn into production.
Strandline Resources is up 1.96 per cent, trading at 26 cents per share at 2:41 pm AEDT.