Synertec Expands Powerhouse Fleet with Two New Santos Contracts

Expanding Powerhouse Presence in GLNG Operations

Synertec Corporation Limited (ASX:SOP) has clinched contracts with Santos to supply two additional Powerhouse systems for the Gladstone Liquified Natural Gas Joint Venture (GLNG JV1), boosting the total units contracted to six. These systems, designed to power coal seam gas wells with renewable energy, reinforce Synertec’s role in Santos’ upstream development program and mark a significant scaling of their partnership.

The new units, designated #5 and #6, are slated for installation in the first half of FY27. Unit #5 features 250kW of solar capacity paired with 1MWh of battery storage, expected to energise three wells. Unit #6 ups the ante with 300kW solar and 1.5MWh storage, powering five wells, though its contract remains contingent on Santos’ final investment sanction anticipated by the end of Q1 FY27.

High-Margin Build Own Operate Maintain Model

All six Powerhouse systems operate under a Build, Own, Operate and Maintain (BOOM) commercial model, effectively a “Power-as-a-Service” arrangement. Synertec receives a flat monthly rental fee that covers remote supervisory and maintenance services, delivering an EBITDA margin in the vicinity of 90%. This model aligns incentives for reliability and operational excellence, with the Powerhouse technology boasting over 99.95% availability across six years of cumulative operation. Such uptime translates to minimal unplanned site visits and no downtime for critical well site equipment, a crucial factor for remote gas operations.

Technology and Supply Chain Advantages

Synertec’s Powerhouse platform distinguishes itself as a zero-emission, islanded microgrid system that leverages smart Predictive Intelligence to autonomously balance energy harvesting and load management without fossil-fuel backup. The technology’s remote control and high reliability make it well-suited for remote industrial applications, offering cost savings over traditional fossil-fuel generators by eliminating fuel and maintenance expenses.

Unit #4, previously announced and fabricated through Synertec’s global low-cost, high-capacity supply chain, has undergone rigorous Factory Acceptance Testing both overseas and in Australia, including participation from Santos engineers. This enhanced “plug and play” design facilitates rapid site deployment with minimal personnel, a critical advantage for scaling rollout programs efficiently.

Strategic Implications for Santos and Synertec

From Santos’ perspective, integrating Powerhouse systems reduces the need to burn saleable gas for onsite electricity, preserving more gas for market sale while cutting production emissions and costs. Synertec’s Managing Director Michael Carroll highlighted the system’s role as a hedge against energy supply disruptions and cost escalations amid global energy market volatility.

Looking beyond GLNG, Synertec envisions Powerhouse technology scaling across multiple sectors, including mining, critical infrastructure, and data centres, supported by its proprietary testing capabilities and expanding supply chain. This contract expansion with Santos underscores growing market acceptance of Powerhouse as a flexible, reliable renewable energy solution for remote operations.