Apa Group · ASX:APA
Apa — Corporate Update (May 2024)
36 slides from Apa's corporate update, May 22, 2024
Slide 1: ASX Announcement: Pilbara Energy System investor site visit
APA Group Limited ACN 091 344 704 | APA Infrastructure Trust ARSN 091 678 778 | APA Investment Trust ARSN 115 585 441 Level 25, 580 George Street Sydney NSW 2000 | PO Box R41 Royal Exchange NSW 1225 Phone +61 2 9693 0000 | Fax +61 2 9693 0093 APA Group | apa.com.au 22 May 2024 ASX ANNOUNCEMENT APA G
Slide 2: Pilbara Energy System Investor site visit
For personal use only Pilbara Energy System Investor site visit May 2024
Slide 3: Disclaimer
Disclaimer This presentation has been prepared by APA Group Limited (ACN 091 344 704) as responsible estimates. A number of important factors could cause actual results or performance to differ entity of the APA Infrastructure Trust (ARSN 091 678 778) and APA Investment Trust (ARSN materially from s
Slide 4: Welcome
For personal use only Welcome Boodarie Power Station 01 Port Hedland BESS construction
Slide 5: Acknowledgement of Country
For personal use only Acknowledgement of Country At APA, we acknowledge the Traditional Owners and Custodians of the lands on which we live and work throughout Australia. We acknowledge their connections to land, sea and community. We pay our respects to their Elders past and present, and commit to
Slide 6: Safety share: Dehydration in hot climates
Safety share: Dehydration in hot climates Pilbara Energy System Extreme daytime temperatures For personal use only 38 36 36 37 36 37 35 35 36 34 33 Port Hedland 31 32 average daily maximum 29 30 temperature 28 27 28 (°C)(1) 0 May Apr Oct Nov Mar Jan Jun Jul Feb Aug Sep Dec Focus on Education Access
Slide 7: Agenda
Agenda 1 Today’s key messages 2 Attractive market dynamics For personal use only 3 APA’s competitive advantages in the Pilbara 4 APA’s West Coast Grid Today’s speakers GARRICK ROLLASON DARREN ROGERS GARY BRYANT Chief Financial Officer Group Executive GM Power Development Energy Solutions Pilbara Ene
Slide 8: Today's key messages
Today's key messages For personal use only The opportunities in the Pilbara APA is well positioned with Strong returns from existing are significant strong competitive advantage assets and growth pipeline • A premier global mining • Strategic sites and approvals • Financial performance of region sec
Slide 9: Attractive market dynamics
For personal use only Attractive market dynamics Newman Power Station 02
Slide 10: The Pilbara is the world's premium iron ore export region
The Pilbara is the world's premium iron ore export region and a growing region for gold and critical minerals development For personal use only 1,200km north of Perth Port Total land area of >500,000km2 Hedland PILBARA REGION Newman #1 location globally for producing iron ore due to low cost Perth G
Slide 11: Miners are committed to decarbonisation
Miners are committed to decarbonisation, focused on reducing reliance on diesel and progressing the electrification of the mining value chain(1) For personal use only BHP FMG Roy Hill Rio Tinto Scope 1 2 1 2 1 2 1 2 -15% (2025) Real zero 2030 -30% operational -20% -50% emissions No interim reduction
Slide 12: Decarbonisation requires significant growth in renewables, a $15bn opportunity
Decarbonisation will require significant growth in renewables, with electricity demand expected to increase by ~40x from 2024 to 2050 equating to a $15bn(1) opportunity Renewable energy generation expected to be required (TWh)(2) For personal use only $15bn investment opportunity (1) 16 14.8 14 12.0
Slide 13: APA is the largest commercial operator of Pilbara generation and transmission
Existing Pilbara generation and electricity transmission assets are largely owned and operated independently by miners; APA is the largest commercial operator Power generation, transmission and gas pipeline infrastructure in the Pilbara(1) For personal use only APA 24 power stations with total Woods
Slide 14: Transitioning to firmed renewables is complex
Transitioning from gas and diesel baseload to firmed renewables is complex and requires expertise to manage intermittency 400 Solar Solar (80MW) Wind and solar generation 1 For personal use only Thermal (MW) Thermal only; thermal not needed 350 Wind Wind (260MW) 2 BESS BESS (150MW/300MWh) Renewables
Slide 15: APA's competitive advantages in the Pilbara
APA’s competitive advantages in the For personal use only Pilbara Newman Power Station 03
Slide 16: The vision for the Pilbara Energy System began more than a decade ago
The vision for the Pilbara Energy System began more than a decade ago For personal use only PORT 1995 - 1998 2004 2012 2014/15 2018 2022 2023 Port Hedland Pilbara assets Power supply to BHP and FMG Boodarie Unit 301 BHP Port Hedland Power Station acquired by FMG Anderson recontracted decommissioned
Slide 17: Our ability to deliver growth driven by competitive advantages
Our ability to deliver growth in the region driven by our competitive advantages, which have been established over a 10-year period For personal use only Land Traditional Customer Development Operational Owners relationships capability capability Secured strategic Relationship Proven energy Substant
Slide 18: Portfolio of operating power generation and transmission assets
We have developed an enviable portfolio of operating power generation and transmission assets Operating and under construction portfolio Pilbara Energy System zones For personal use only Asset Type Capacity Customers Operating Port Hedland Power Station 210MW BHP, FMG Port Hedland Transmission Line
Slide 19: Attractive >$3 billion development pipeline
An attractive >$3 billion(1) development pipeline expected to deliver approximately ~1GW of new capacity(2)(3) Operation Under construction Development pipeline(3) Total ~1.6GW+ 1 Significant construction and For personal use only development pipeline of ~1GW+ Demand supported by the electrification
Slide 20: Growth pipeline driven by strategic sites
Growth pipeline driven by strategic sites with the best renewable resources / capacity factors, located close to existing infrastructure and our customers Inland tenure is dominated by mine sites For personal use only Australian Port Hedland Renewable APA’s Chichester and Energy Hub Newman sites are
Slide 21: Committed to Indigenous engagement and participation
APA is committed to Indigenous engagement and participation For personal use only Native Title agreements with the following Traditional Owner groups in the Pilbara: The border of the Palyku • Kariyarra People area has been recently • Nyiyaparli People determined to include much of this area Strong
Slide 22: Well placed to support customer requirements for a timely transition
We are well placed to support our customer requirements for a timely transition • Lead times for Pilbara renewables are long, with initial engagement generally starting at least 6 years before a customer requires commercial operations • Pilbara customers seek commercial operations within 2 to 3 year
Slide 23: Longer term vision: interconnected electricity transmission for the Pilbara
APA’s longer term vision is to deliver interconnected electricity transmission for the Pilbara Proposed East Pilbara Network map(1) Why East Pilbara Network (EPN)? For personal use only Port operations Aligns with Government objectives Port Hedland Power Station Hemi Gold Pilgangoora Supports and ac
Slide 24: Expertise in remote grids enables bundled solutions
Our expertise in remote grids enables us to bundle solutions that deliver low cost, reliable, low emissions power generation for our customers Illustrative pathway Indicative LCOE(1) vs Renewable Energy Fraction For personal use only → Remote facilities typically start with Gas or 1 diesel 100% gas(
Slide 25: Attractive returns for securityholders
Attractive returns for securityholders reflect the complexity of project development and operations Targeting returns in excess of our post tax WACC(1) For personal use only Indicative returns above our post tax WACC 5%+ Disciplined IRR hurdle rates, which dynamically capture the specific risk profi
Slide 26: APA's West Coast Grid
APA’s West Coast For personal use only Grid Mondarra gas storage 04
Slide 27: 100% ownership of Goldfields Gas Pipeline and Northern Goldfields Interconnect
100% ownership of Goldfields Gas Pipeline combined with the Northern Goldfields Interconnect enables new product offerings and increased supply reliability For personal use only Iron Ore, Gold Reliability Magnetite Iron Ore • Alternate transportation routes Nickel • Ability to manage both gas supply
Slide 28: Confident in longer term demand for the Northern Goldfields Interconnect
Confident in longer term demand for the Northern Goldfields Interconnect with ramp up ~5 years akin to Goldfields Gas Pipeline Underlying Market For personal use only • Operators all along the GGP need to replace diesel with gas and complement with renewables • Demand for gas will therefore also gro
Slide 29: Q&A
Q&A For personal use only Port Hedland Power Station
Slide 30: Appendix
For personal use only Appendix Diamantina Power Station Newman Power Station Battery
Slide 31: Port Hedland Power Station overview
Pilbara Energy System: Port Hedland Power Station overview Asset overview Site location Key figures For personal use only z Chichester The Port Hedland Power Station is located in the Commissioned 1995 Main site Shire of Port Hedland, 1,640km north of Perth 1998 Boodarie and 6km south of South Hedla
Slide 32: Newman Power Station and BESS overview
Pilbara Energy System: Newman Power Station and BESS overview Asset overview Site location Key figures For personal use only Newman is located in the Pilbara region, 450km Commissioned 1996 (Frame), southeast of Port Hedland. 2009 (Trent), 2018 Port (BESS), 2022 Chichester (Recips) Hedland The Newma
Slide 33: Chichester Solar Farm overview
Pilbara Energy System: Chichester Solar Farm overview Asset overview Site location Key figures For personal use only The Chichester Solar Farm is located adjacent to Chichester Commissioned 2021 the Christmas Creek mine in the East Pilbara region of Western Australia (~135 km north of Port Newman an
Slide 34: Goldfields Gas Pipeline overview
Pilbara Energy System: Goldfields Gas Pipeline overview Asset overview Site location Key figures For personal use only Goldfields Gas Pipeline (GGP) is an essential gas Chichester transmission pipeline servicing the major iron ore, Commissioned 1996 gold and nickel mining regions of WA. Port Hedland
Slide 35: Gas serves a critical firming and reserve capacity role
Gas serves a critical firming and reserve capacity role in the Pilbara region Forecast increase in electricity demand and renewables capacity to 17TWh and ~5.1GW respectively by 2050, with supply expected to transition to become ~89% renewables and ~11% gas by 2050 Pilbara renewable “droughts” of 8+
Slide 36: For further information
For personal use only For further information Kynwynn Strong Michael Cox General Manager Investor Relations Head of Media Relations & & Capital Markets Financial Communications M: +61 410 481 383 M: +61 429 465 227 E: ir@apa.com.au E: michael.cox@apa.com.au www.apa.com.au