Pilot Energy is advancing Australia’s first Direct Air Capture demonstration facility at its Cliff Head site, aiming to start operations by mid-2026 and pave the way for a large-scale carbon removal plant.
- First Australian Direct Air Capture (DAC) demo facility on track for June 2026
- Capture6 technology integrates saline water processing with CO2 removal
- Initial plant to capture 300 kg CO2 daily over a three-month trial
- Plans for commercial scale facility capturing up to 350,000 tonnes CO2 annually
- Dongara Energy Centre evolving as a low carbon industrial hub
A Milestone for Carbon Capture in Australia
Pilot Energy Limited (ASX:PGY) has announced a significant step forward in its clean energy transition with the upcoming commissioning of Australia’s first Direct Air Capture (DAC) demonstration facility. Located at the Cliff Head Carbon Storage Project in Western Australia, the Dongara DAC Project, also known as Project Wallaby, is scheduled to be operational by June 2026.
This demonstration plant represents a pioneering integration of carbon capture technology with saline water processing, leveraging Capture6 Corp’s innovative system. Unlike traditional DAC methods that are energy-intensive and multi-step, Capture6’s technology uses waste brine from the carbon storage reservoir to mineralise CO2 in a single step, simultaneously producing fresh water and green chemicals.
Technology and Environmental Synergies
The Cliff Head site naturally produces saline formation water as part of its pressure management operations. Pilot Energy’s existing infrastructure can process up to 5.5 million litres of this saline water daily, providing an ideal feedstock for the Capture6 system. By converting this brine into a solvent for carbon capture, the project not only addresses the costly issue of brine disposal but also enhances water recovery and carbon removal efficiency.
The demonstration facility comprises nine containerised modules, with the first units already assembled in Perth and the remainder expected by March 2026. Powered by electricity from Pilot’s gas-fired generation plant, the facility will initially capture approximately 300 kilograms of CO2 per day during a three-month trial period.
Scaling Up: From Demo to Commercial
Following the demonstration phase, Pilot Energy and Capture6 plan to evaluate the results with an eye toward a full commercial-scale facility. The proposed commercial plant could capture 35,000 tonnes of CO2 annually, with potential expansion to 350,000 tonnes per year. This scale-up would position the Dongara Energy Centre as a key player in Australia’s carbon management landscape.
The broader vision sees the Cliff Head onshore plant evolving into a multi-purpose low carbon industrial hub, integrating carbon storage, direct air capture, and other clean energy initiatives such as the Dongara Data Centre. This transformation aligns with Australia’s national goals for carbon neutrality and water resource stewardship.
Strategic Implications and Future Outlook
Pilot Energy’s move into DAC technology marks a strategic diversification from traditional oil and gas operations toward sustainable energy solutions. Supported by a A$6.5 million Commonwealth grant and a joint development agreement with Capture6, the project exemplifies how existing energy infrastructure can be repurposed to meet climate challenges.
As the Dongara DAC demonstration facility nears completion, investors and stakeholders will be watching closely for commissioning results and operational performance. Success here could unlock significant commercial opportunities in carbon removal credits, green chemical production, and freshwater generation, setting a precedent for similar projects across Australia and the Asia-Pacific region.
Bottom Line?
Pilot Energy’s Dongara DAC project is poised to transform carbon capture in Australia, but the path to commercial scale hinges on successful demonstration outcomes.
Questions in the middle?
- Will the demonstration facility meet its CO2 capture targets during the initial trial?
- What regulatory hurdles remain for scaling the DAC technology commercially?
- How will Pilot Energy finance and time the expansion to the 350,000 tonnes per annum facility?