Power supply expansion and transition to trucked LNG

Overview

PLS engaged Iluminex to develop and execute the commercial strategy supporting the P1000 expansion of the Pilgangoora Project, transitioning the operation from a diesel-powered mine to an integrated LNG, solar and battery solution while maintaining flexibility for future grid connection.

Iluminex led the end-to-end commercial process, including power strategy development, economic and emissions modelling, and the structuring and negotiation of three interdependent agreements across power generation, LNG supply and logistics, designed to operate as a single integrated commercial solution. We also supported the development of Pilbara Minerals' power decarbonisation commitments and associated ASX disclosures.

Scope

• Developed the long-term power strategy supporting the P1000 expansion.
• Led procurement and commercial negotiations for the power station, LNG commodity, transport, storage and regasification services.
• Developed economic, emissions and risk models to evaluate supply and technology pathways.
• Structured and negotiated three interdependent commercial agreements across power generation, LNG supply and LNG logistics.
• Supported preparation of Board papers, investment materials and ASX announcements relating to the power strategy and decarbonisation commitments.

Outcome

• Delivered a staged power strategy supporting material cost savings, lower unit operating costs and an approximately 48% reduction in power emissions intensity. 
  
• Successfully transitioned the operation from diesel generation to an integrated LNG and renewable hybrid power solution, reliably supporting the P1000 expansion preserving strategic optionality for future grid connection.
  

“I would highly recommend working with the team at Iluminex, their specific expertise and market intelligence has helped us deliver on one of our strategic business pillars. Iluminex also worked very closely with us to deliver significant operational savings and performed a valuable role in our negotiation and execution team” - Paul Laybourne, Project Director, PLS

ASX announcement

Power Strategy to Reduce Emissions & Costs