• Strike has entered into a $48.5 million contract with Clarke Energy to procure
twenty (20) 4.5 MW Jenbacher gas reciprocating engines and commissioning
services for its proposed South Erregulla peaking gas power plant.
• Fixed price contract in line with Strike’s mid-case capital estimates.
Strike Energy Limited (Strike - ASX: STX) announces its entry into a material procurement
contract for its proposed 85 MW peaking gas power plant, as part of the development of the
South Erregulla gas field in L24 (100% net to STX).
Strike and Clarke Energy Pty Ltd (Clarke Energy) have entered into a $48.5 million fixed price
contract for the procurement and commissioning services of twenty (20) 4.5 MW Jenbacher
reciprocating gas engines. Reciprocating gas engines have been preferred over turbine
technology due to their higher efficiencies and quicker start-up / response times, which suits
the peaking role that this power plant will operate under.
The Jenbacher reciprocating gas engines are a proven conventional technology with over 1 GW
of generation in Australia alone. Locally in Western Australia, Jenbacher gas engines currently
generate more than 358 MWs of power from 128 engines in operation. Since 2017, Clarke Energy
has also delivered Jenbacher gas engines into the United Kingdom, which now supply more than
410 MWs (from 91 of the same Jenbacher gas engines) of peaking gas fired power.
Strike has negotiated an attractive minimum contract termination exposure as well as
suspension flexibility to minimise any regret costs between now and its proposed final
investment decision in November 2024, which remains subject to receiving capacity allocation
from AEMO in August 2024 and then its minimum required network access quantity in
November 2024. Execution of this contract secures Strike’s fabrication slots in the Jenbacher
factory and delivery times in order to meet the October 2026 start-up date for the power plant.
The payment terms of the contract are predominantly back-ended and on receipt of the engines
in Western Australia. As part of the contract Clarke Energy will also provide commissioning
support to the peaking gas power plant. This fixed price contract is in line with Strike’s mid case
estimates for total project cost.
About Clarke Energy
Clarke Energy is a multi-award-winning global business specialising in the engineering,
installation and long-term maintenance of distributed energy solutions. Clarke Energy started in
1989 and has operated in Australia since 2001.
This announcement is authorised for release by the Managing Director and Chief Executive
Officer in accordance with the Company’s Continuous Disclosure Policy.
