FutureEnergy Australia signs renewable diesel MOU with Horizon Power
Carnarvon Energy Ltd. announced July 12 that its 50/50 joint-venture renewable diesel business with Frontier Impact Group, FutureEnergy Australia, has signed a nonbinding memorandum of understanding (MOU) with the regional Western Australian power provider Horizon Power.
The MOU provides a framework for the organizations to pursue a strategic partnership on renewable diesel project development and production.
The strategic partnership with Horizon Power is intended to canvas a wide range of opportunities, including direct investment into renewable diesel projects, offtake, power-purchase agreements and new site locations.
Horizon Power’s service area includes 34 microgrids and connected systems in the Kimberley, Pilbara, Gascoyne/Mid-West, and Esperance/Goldfields regions of Western Australia.
These regional areas are located near new potential renewable diesel project locations identified by FutureEnergy Australia.
The two organizations acknowledge that they have complementary business objectives in building and scaling up renewable diesel production capacity in regional Western Australia.
“Horizon Power has set objectives to decarbonize its power-generation operations in remote regional communities by 2030,” said Mike Houlahan, chief financial officer for Horizon Power. “The lack of infrastructure in these regional communities means that substituting mineral diesel with renewable diesel is a critical decarbonization enabler.”
Adrian Cook, Carnarvon CEO and managing director, said, “Carnarvon aims to build a significant renewable fuels business in Western Australia, with 500 million liters (132 million gallons) per annum production by 2030. Support from Horizon Power is a recognition of the tangibility of the renewable fuels business and highlights the significant demand for domestically produced renewable diesel. We are excited to work with Horizon Power as a strategic partner to develop and produce renewable diesel. Horizon Power and FutureEnergy Australia share many core values in delivering better economic and carbon outcomes for regional Western Australians.”