- Strandline Resources (STA) has executed a non-binding proposal with leading energy producers Woodside and EDL
- Together, the parties will develop a 27-megawatt hybrid gas and renewable power solution for the Coburn mineral sands project in WA
- This power solution will allow Strandline to capture energy supply cost savings related to its definitive feasibility study
- The Coburn project is construction-ready and is waiting on finalisation of project financing
- Strandline is up 9.52 per cent, with shares trading for 11.5 cents each
Strandline Resources (STA) has selected Woodside and EDL to provide a fully-integrated energy solution for its Coburn mineral sands project in Western Australia.
The parties have signed a non-binding proposal to develop a 27 megawatt integrated trucked LNG, storage and power station facility, comprising gas and diesel back-up generators combined with solar and battery technology.
The Woodside and EDL Joint Venture (WEJV) was formed to provide clean, reliable and affordable LNG (liquefied natural gas) to the market.
This trucked LNG to hybrid renewable micro-grid project will see EDL bring its expertise to the project's power station and LNG storage and re-gasification facilities.
LNG will be supplied from Woodside's Pluto LNG truck loading facility near Karratha.
Woodside is considered a "pioneer" in the Australian LNG industry and is a leading Australian natural gas producer. The company is recognised as a world-class supplier of energy.
EDL is also a leading producer of sustainable energy. It owns and operates 100 power stations, with a total installed capacity of over 1000 megawatts across Australia, North America and Europe.
"We are pleased to establish this relationship with Woodside and EDL to provide a turn-key, low-cost fuel supply and generation solution for the Coburn Project," Strandline Managing Director Luke Graham said.
The company expects to finalise a 15-year power purchase agreement over the coming months to commence construction.
The WEJV solution gives Strandline a long-term safe, reliable and highly-efficient energy solution for the Coburn project.
Coburn hosts "exceptional" zircon and titanium mineral sands products.
Strandline recently completed a Definitive Feasibility Study for the project which showed it will generate strong financial returns with a pre tax net present value of A$551 million, an internal rate of return of 32 per cent, a life of mine earnings before interest, tax depreciation and amortisation of $1.9 billion.
Strandline is up 9.52 per cent, with shares trading for 11.5 cents each at 3:51 pm AEDT.