Triangle Energy is set to get the ball rolling on a front end engineering design study on a proposed 5,000 barrel per day modular feed renewable fuel refinery in the mid-west of WA. The refinery is slated to use crude, condensate and bio-crude feedstocks to produce renewable diesel and renewable marine fuel blends.
Triangle Energy Global is set to get the ball rolling on a front end engineering design, or “FEED” study on a proposed 5,000 barrel per day modular feed renewable fuel refinery in the mid-west of WA. The refinery is slated to use crude oil, condensate and bio-crude oil feedstocks to produce renewable diesel and renewable marine fuel blends.
The company says the refinery, that is planned to be fuelled by hydrogen, would be the first of its kind in the country.
The FEED study is set to be completed in the new year with first production earmarked for Q1 of 2024. The recent work comes off the back of a concept study and pre-front end engineering design or “pre-FEED” study where a fleet of positive outcomes led to the progression to the FEED study.
The project aims to meet the growing renewable fuel demands from the mining and heavy transport industries and will also provide a lifeline processing option for smaller producers that typically send their oil to BP’s Kwinana refinery that is slated for closure later this decade.
Triangle has selected North American-based Plant Process Group LLC, a veteran in the renewable diesel refining space, to undertake the FEED study that is expected to be completed in the new year.
Triangle Energy Global Managing Director and CEO, Robert Towner said:“The Triangle Energy team is very pleased to announce our investigation into the potential to establish a modern, modular renewable fuel refinery by leveraging our existing infrastructure in the Perth Basin. The proposed 5,000 barrel per day facility would be suitable for bio-crude fuel stocks as well as crude and condensate products from our Cliff Head Joint Venture as well as other onshore and offshore operations in the state.”
The recent work rounds out a busy period for Triangle that only a few weeks ago consummated a deal with BP Singapore, as part of its majority-owned Cliff Head joint venture agreement with ASX-Listed Pilot Energy to sell 100 per cent of the crude oil produced from its Cliff Head oil field.
Elsewhere, the company is progressing its growing list of projects in the Perth Basin that includes about half a dozen offshore and land-based projects.
The offshore projects are led by the aforementioned Cliff Head project that Triangle says offers low risk drilling and near-term production opportunities. Recent estimates at the project point to 800 barrels of oil per day with an estimated best prospective resource of 9.3 million stock tank barrels.
The company plans to lift the veil on its onshore targets using 3D seismic.
Outside of its Perth Basin operations, Triangle has an equity interest in ASX-listed State Gas that is steadily advancing its Reid’s Dome gas project aimed at tackling a shortage of gas supplies on the East Coast.
Triangle’s push for a new refinery in WA, whilst necessary given BP’s impending Kwinana refinery closure, could also provide a whole new income vertical for the small capped producer.
It could be somewhat underwritten by its own operations but could also pick up business from its oil producing peers in the region.
Importantly it could also give Triangle the option of becoming a net importer of oil in the Midwest that it could transform into diesel that could potentially be sold in the millions of litres to the big miners and industrial businesses that are littered around the Mid West and the Pilbara.
Some of the best businesses were born out of necessity but ultimately became a home run and whilst Triangle has a long way to go yet, this could get interesting quickly.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
