How Pilot Energy Fast-Tracks $1.5M R&D Tax Refund to Boost Clean Energy Projects
Pilot Energy has secured a $1.52 million financing facility to fast-track its FY2025 R&D Tax Incentive refund, supporting its clean energy and gas exploration projects.
- Secured $1.52 million debt facility from Radium Capital
- Facility advances 85% of anticipated $1.8 million FY2025 R&D refund
- Refund expected in Q1 2026, facility repaid upon receipt
- Supports Mid West Clean Energy and WA 481 P gas projects
- Plans to expand financing for Cliff Head Carbon Storage Project
Pilot Energy Accelerates Access to R&D Funds
Pilot Energy Limited (ASX – PGY) has taken a strategic step to accelerate its cash flow by securing a $1.52 million debt financing facility from Radium Capital. This facility advances 85% of the company's anticipated FY2025 Research and Development (R&D) Tax Incentive refund, estimated at approximately $1.8 million. The full refund is expected to be received in the first quarter of 2026, at which point Pilot will repay the facility and receive the remaining balance.
Backing Innovation and Clean Energy Transition
This financing arrangement underscores Pilot’s ongoing commitment to its R&D activities, particularly those linked to the Mid West Clean Energy project and the WA 481 P gas exploration permit. The company has a track record of successfully leveraging government incentives, having previously received refunds of $1.3 million for FY2023 and $1.5 million for FY2024. By partnering with Radium Capital, a specialist in R&D financing with over $1 billion in innovation funding, Pilot is positioning itself to maintain momentum in its transition from traditional oil and gas operations toward clean energy solutions.
Strategic Implications for Project Development
Managing Director Brad Lingo highlighted that the facility not only accelerates access to capital but also establishes a relationship with a leading R&D financier. This relationship is expected to support ongoing expenditures, including those related to the Cliff Head Carbon Storage Project, which aims to convert existing offshore oil infrastructure into a carbon storage facility. This project is a key component of Pilot’s broader strategy to diversify and transition into emerging clean energy markets across the Asia-Pacific region.
Financial and Market Context
By advancing the R&D refund, Pilot improves its liquidity position without diluting equity or increasing traditional debt levels. This approach reflects a growing trend among Australian energy companies to tap into government incentives and specialist financing to fund innovation and environmental initiatives. While the exact costs of the facility have not been disclosed, the arrangement provides Pilot with timely capital to sustain its development pipeline amid a competitive and evolving energy landscape.
Looking Ahead
As Pilot awaits the formal receipt of the FY2025 R&D refund, the company’s ability to efficiently recycle capital invested in its projects will be critical. The success of this financing deal may pave the way for further collaborations with Radium Capital, potentially accelerating Pilot’s clean energy ambitions and reinforcing its position in the transition economy.
Bottom Line?
Pilot Energy’s new financing deal accelerates cash flow and signals growing momentum in its clean energy transition.
Questions in the middle?
- What are the specific terms and costs associated with the Radium Capital facility?
- How will accelerated funding impact the timeline and scale of the Cliff Head Carbon Storage Project?
- Could Pilot expand this financing model to other projects or partners in the near future?
