Clean Energy Fuels Australia (CEFA) is progressing plans to build its $100 million Mid-West LNG Hub near Mount Magnet, Western Australia.
The hub will supply LNG as a fuel to generate electricity for mines and remote communities in the region, with CEFA having now secured a long-term site lease for its plant in regional WA.
The project is currently under assessment from the WA Planning Commission and will commence construction later this year, subject to approvals.
CEFA Managing Director Romano Bernhard said the execution of the site lease is a great milestone for the project.
“In addition to being significantly more environmentally friendly, domestically produced LNG is materially cheaper than diesel – almost all of which is sourced from imported oil,” he said.
“As well as contributing positively to Australia’s balance of payments, miners will benefit from an immediate reduction of operating cost without any capital expenditure.
“We are also working on innovative solutions to displace diesel consumed in heavy mine haul vehicles with LNG while maintaining the same power delivery needed for mining operations.”
CEFA said the first LNG train at the Mid-West LNG Hub could displace approximately 3 billion L of imported diesel.
The company is supported by global infrastructure fund I Squared Capital to deliver the project and has secured access to natural gas, pipeline transport capacity and a long-term lease for the site.
For more information visit the CEFA website.
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