VRX Silica (ASX: VRX) has executed a letter of intent with ResourcesWA to investigate a proposed power supply solution for its Arrowsmith North silica sand project utilising gas directly from a local wellhead.
HIGHLIGHTS
- Proposal to supply gas-fired power supply
- Electricity transmitted directly from well head powerhouse
- Fit-for-purpose design
- Potentially lower footprint and reduced emissions
The purpose of the LOI is to investigate the potential to establish a powerhouse, with containerised gas reciprocating engines, at a nearby gas wellhead site with direct offtake from the existing gas plant and reticulation to the Arrowsmith North site via a dedicated transmission line.
ResourcesWA has a fully resourced and operational project development, delivery and asset management team. The proposal is inclusive of all design, construction and operational requirements to provide a 100% turn key build, own and operate solution.
VRX Silica Managing Director Bruce Maluish said:
“We have been considering for some time how we can best take advantage of the abundant supply of gas from nearby gas fields to meet our power requirements at Arrowsmith North.
“Our desktop modelling indicates that a gas-driven powerhouse and transmission solution is not only cost effective but will reduce our project footprint and expected greenhouse gas emissions.”
