[Corridor Conversations] Brad Lingo

Corridor Conversations – Brad Lingo

Title: Chairman – Pilot Energy

Quote: “We want to provide clean carbon fuel materials that are low cost and part of a mix that Korea is looking for as it decarbonises its economy.”

Thanks for joining us Brad – I was wondering if you could tell us a bit about yourself and your background?

I started working in the energy sector in the mid-1980s and was principally focused on the business development of energy infrastructure – natural gas pipelines, independent power projects, and solar projects. I was working for a large energy conglomerate. In the early 90s I began focusing on big domestic projects and then focusing on international projects. In 1993 that brought me to Australia so that I could work on natural gas transmission systems and work on big projects like the Gold Fields gas pipeline in Western Australia, and the privatisation of existing natural gas pipelines in South Australia and New South Wales, before building out new energy infrastructure in Queensland. Then I became the head of oil and gas with the Commonwealth Bank where I learned how to provide capital for development. I ended up going back to the industry and focused on getting behind a series of small Australian oil and gas resource companies and took them from nano caps to investment grade institutional scale. 

And what about your current organisation, Pilot Energy, how do they operate in the Australia-Korea space?

In 2020, I was approached by a group of shareholders from Pilot to evaluate and see where we should take this company. Pilot was a long listed Australian oil and gas company. The strategy that we are building out now is to move away from being a pure oil and gas exploration company and to actually focus on becoming a clean energy producer. We are not walking away from oil and gas, rather it’s more that we are walking into an energy transition to ultimately become one of Australia’s leading producers of low cost, low carbon intensity, clean energy, for both domestic and export consumption.

What prospects made Pilot Energy look towards Korea?

When we looked at our position, the Mid-West Clean Energy Project, we assessed the magnitude of the resources, and it was clear that it was so significant that it was well beyond the scale of the existing domestic market. For us, clearly there was this large export potential if these resources were fully developed. This raised the question: who are Australia’s existing energy export partners? Right at the top of that list is Korea and Japan. With Korea, we wanted to focus on the evolution of the existing relationship – historically it’s been built of coal or liquefied natural gas (LNG). Now we are taking it to the next level – we want to provide clean carbon fuel materials that are low cost and part of a mix that Korea is looking for as it decarbonises its economy. 

Where do you see the clean energy market in five or ten years?

From our perspective, Pilot Energy’s Mid-West Clean Energy Project focuses on large scale production of low carbon intensity ammonia to provide transition hydrogen fuel for co-generation thermal power plants. Ultimately, ammonia has been identified as ideal for providing clean hydrogen. It is not just a chemical resource, it’s also an energy resource. We see ammonia in the next five years becoming a transition replacement for LNG – it’s already widely traded and is the seventh most in demand industrial chemical. There’s 190 million tonnes of ammonia produced globally. It’s also an energy source and there’s 120 ports around the world. As we seek to decarbonise, ammonia has no carbon associated with it. It’s demonstrated that it can be commercially attractive because you can get an immediate reduction in CO2 emissions. For example, hydrogen can be available for consumption in a hydrogen EV vehicle, into combustion, or a chemical process. It provides us not only the ability to export hydrogen, but also renewable energy.

How have you found working in the Korean space so far?

It’s been extremely productive. We initially met with a group of advisors that are part of that bridge in terms of the relationship between Australia and Korea. They understood what we were trying to do, and they’ve given us very good access to major Korean industrials and we’ve been leveraging off an historical Australia-Korea relationship ever since. There are many Korean companies who want to grow their business in Australia, and that business is taking on a new dynamic. It’s not about those conventional resources whether that be iron, coal, or LNG – now we need the next piece of that trade relationship puzzle which is clean energy resources. Our relationship can offer two elements to Korean trade partners – we can deliver clean, carbon free energy resources. Number two, we can also help them reduce their carbon footprint by capturing remaining CO2 that is produced in Korea and then bringing it back to Australia for storage. It’s a two-way relationship and it’s very much focused on the long-term.

How did you initially come across AustCham Korea and how have they been able to assist you?

We came across AustCham Korea through a contact with one of our major shareholders – they said that it was essential to become a member so that we could establish relationships. From the outset, we made the point of maintaining the relationship by going up to Korea and seeing all the prospective Korean companies who we believe should be interested in what we have to offer. In fact, I’ll be flying up to Seoul again soon to meet some of these people.

Brad, let’s finish with a couple of light hearted questions – what’s your favourite Korean food? 

I’m a big fan of kimchi. Near our office there’s an Asian food grocery store which has a good Korean section, and I’ll partake in there for sure. I also enjoy having gochujang sauce!

Finally, you’ve spent a lot of time in Australia. Is there a favourite Australian expression that you have which you’d like to introduce to the Korean community? 

There are a few. Actually, there’s a very famous Australian movie called “The Castle”. I would highly recommend that any Korean person should watch it. There are a whole range of sayings throughout that movie that you can use at any given time – things like “it’s the vibe” or “tell them they’re dreaming.” It’s available on Apple iTunes!

That’s great! Brad – thanks for taking the time and have a safe flight to Seoul!