Strike hands $48.5M contract to Clarke Energy to produce 20x 4.5MW gas engines for Sth Erregulla

Strike Energy (ASX:STX) has awarded a contract nearly $50M in value to Clarke Energy for it to make 20 individual 4.5MW gas engines.

Under a $48.5M contract, Clarke will develop no less than 20 individual 4.5MW gas engines for its proposed South Erregulla peaking gas power plant.

Peakers are plants which run only during times of high demand. The engines are Jenbacher types which Strike see as more efficient models.

“The Jenbacher reciprocating gas engines are a proven conventional technology with over 1 GW of generation in Australia alone,” Strike wrote on Thursday.

“Locally in Western Australia, Jenbacher gas engines currently
generate more than 358 MWs of power from 128 engines in operation.”

In between the lines: an engine in the WA context needs to be sturdy and capable of handling hot summers.

“Strike has negotiated an attractive minimum contract termination exposure as well as suspension flexibility to minimise any regret costs between now and its proposed final investment decision in November 2024,” the company also said of the contract in light of Erregulla being pre-FID.

STX last traded at 20cps.