Pilot’s existing 4.4MW gas-fired generators will power the data centre, with the company procuring gas supply for the project.
Kala says it is handling the tech and upfront costs, deploying and remotely controlling its proprietary modular system, leaving Pilot with a 50 per cent stake via the issue of 38 million new shares to Kala at 2 cents – well north of today’s 0.7c price – escrowed for a year post-commissioning.
Cash flows are expected to result from date centre revenues minus gas costs and hardware upgrade reserves, which are then split 50:50 between the partners.
Pilot estimates that its share of profits from a potential 30MW data centre operation could generate sufficient pre-tax cash flows to internally fund all of Cliff Head’s operating costs while it transitions the operations to a carbon storage project.
Pilot Energy managing director Brad Lingo said: “This partnership with Kala Data represents an innovative and commercially attractive use of Pilot’s Arrowsmith facilities. By leveraging surplus gas-fired power and the existing Cliff Head operations team, we aim to generate an early and material positive cash flow while laying the foundation for long- term growth in renewable energy and carbon storage.”
The partnership aligns with Pilot Energy’s strategy of squeezing value from existing assets, blending gas-fired power, solar developments and future carbon storage .
The new project is scalable too, with the potential to expand across multiple sites.
Kala Data is a cashed-up UAE tech outfit looking to branch out into the world of computing from its traditional, finance, geology and energy expertise.
Its focus on blending renewables with baseload power gels with Pilot’s clean energy vision, making the deal a natural partnership.
The company boasts Australia’s largest offshore oil and gas exploration permit, encompassing proven fairways along WA’s Mid West coast.
Whilst progressing its traditional oil and gas farmout ambitions, Pilot is steering the Cliff Head oil production facility into Australia’s first offshore CO2 storage project. As a part of its push into hydrogen and clean ammonia for APAC markets.
The company is navigating the final stages of acquiring Triangle Energy’s remaining stake in Cliff Head, boosting its control of the asset’s infrastructure, including pipelines and the Arrowsmith plant.
The data centre venture could be just the cash engine Pilot needs to bridge its transition to carbon storage while tapping into a booming global trend.
With WA’s energy market accelerating toward post coal status and data centres reshaping power demands, the Arrowsmith initiative might be the start of a much broader solution to come for the resources flush state.
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au
