Photovoltaic Hybridisation Project
Prospex Energy PLC (AIM: PXEN), the AIM quoted investment company focused on European gas and power projects, is pleased to announce that the development of the photovoltaic hybridisation solar project at the El Romeral power plant, known as “Project Helios”, which would increase output from the plant by up to 60%, is progressing well ahead of the final investment decision, which is scheduled for consideration in June 2023.
Highlights
· 20 hectares adjacent to the El Romeral power plant has been leased for 25 years
· The project to install an array of solar panels with a maximum power output of 5MW peak, is out to tender with five companies based in Spain with tenders expected to complete in early May 2023
· Final Investment Decision (“FID”) for the project is scheduled for consideration in June 2023
· Permitting, procurement and installation expected to take less than 12 months
· Existing grid connection has 8.2MW output allocated to El Romeral which is currently utilising just 2.7 MW
· Further grid capacity is available to accept increased output with the existing infrastructure
The El Romeral power plant is operated by Tarba Energía S.L. (“Tarba”), which is based near Carmona east of Seville in the province of Andalusia, Spain. The power plant is co-owned through Tarba by Prospex which has a 49.9% working interest and Warrego Energy Limited which has a 50.1% working interest. Warrego Energy is now wholly owned by Hancock Energy (PB) Pty Ltd. in Perth Western Australia. Hancock Energy is an active and supportive joint venture owner in Tarba.
The plot of 20 hectares adjacent to the power plant has been leased for an initial period of 2 years with a start date of 1 January 2023. The first two years are at the reduced rate of €800 per hectare per year with a break clause should full permitting or FID not proceed in that timeframe. Thereafter once the project has received full authorisations the lease rate for the next 25 years is at €2,000 per hectare per year adjusted for CPI annually. There is the option to extend the lease in increments of 10 years after this date.
The El Romeral power plant produces electricity from natural gas produced from the three contiguous El Romeral production concessions in the region which are wholly owned by Tarba. By developing Project Helios for the production of electricity through photovoltaic solar energy, electricity production through renewable energy would increase output from the plant by up to 60%.
The new project is a pioneer in the hybridisation of technologies, using the resources and income from electricity generation from conventional natural gas production to re-invest in renewable energy generation from a photovoltaic plant. The hybridisation will use the existing connection to the electricity grid and is expected to provide sufficient energy to supply more than 20,000 homes.
The El Romeral power plant was recently declared a public utility by resolution of the Junta de Andalucía. This declaration comes with no further liabilities and is testament to the good relations that Tarba has built up with the local authorities and the community of Carmona. This recognition has been welcomed by Tarba and consolidates Tarba’s long-term commitment to the population of Carmona as a stable supplier of electricity to the region.
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