Key Highlights

  • Synertec Corporation has executed contracts with Santos for two additional Powerhouse systems, Unit #5 and Unit #6, taking the total number of contracted units with Santos to six, covering 20 to 25 coal seam gas wells.
  • Unit #5 deploys 250kW of solar and 1MWh of storage and is scheduled for installation in the first half of FY27, expected to power three coal seam gas wells, while Unit #6 deploys 300kW of solar and 1.5MWh of storage to power five wells.
  • All six Santos systems are contracted under a Build, Own, Operate and Maintain commercial model, delivering what the company describes as approximately 90% EBITDA margins, with contract terms consistent across all units.
  • Installed Powerhouse units have delivered availability of better than 99.95% across six years of cumulative operation, according to the company, effectively eliminating unplanned site visits and downtime of critical well site equipment.

Synertec Corporation Limited (ASX:SOP) has announced that it has executed contracts with Santos for two additional Powerhouse systems, Unit #5 and Unit #6, taking the total number of Powerhouse units contracted with Santos to six, covering an estimated 20 to 25 coal seam gas wells across Santos' GLNG joint venture operations in Queensland.

Details of the New Contracts

Both new contracts were issued under the standing Master Service Agreement between Synertec and Santos, consistent with the terms of all previously contracted units, including the Build, Own, Operate and Maintain, or BOOM, commercial arrangement. Unit #5 deploys 250kW of solar generation capacity and 1MWh of energy storage, is scheduled for installation in the first half of FY27, and is expected to power three coal seam gas wells. Unit #6 deploys a larger 300kW of solar and 1.5MWh of storage, is also scheduled for installation in the first half of FY27, and is expected to power five coal seam gas wells. Unit #6 remains subject to Santos' final investment sanction, expected around the end of the first quarter of FY27, though the company notes the unit has already progressed through the majority of permitting and regulatory approval processes.

The BOOM Commercial Model

Under the BOOM model, which the company describes as effectively a power-as-a-service arrangement, Synertec receives a flat monthly rental fee that includes the provision of remote supervisory and maintenance services. All six Santos systems are contracted on this basis, with contract terms consistent across all units and delivering what the company describes as approximately 90% EBITDA margins. The underlying Powerhouse technology operates autonomously, using predictive intelligence to manage the interplay between energy harvesting and pump load demand, alongside continuous system checking, power optimisation and data reporting back to both Santos' operations centre in Brisbane and Synertec's control centre in Melbourne.

Track Record and Manufacturing Scale-Up

According to the company, installed Powerhouse units have delivered availability of better than 99.95% across six years of cumulative operation, which it says translates into effective elimination of unplanned site visits and downtime for critical well site equipment. Santos' Unit #4, previously announced in September 2025, was the first unit fabricated via Synertec's lower-cost, higher-capacity global supply chain, and has since completed factory acceptance testing both overseas and in Australia, with Santos engineering personnel participating in a final review ahead of its release to site. The company says its investment in factory testing and simulation capability, including the ability to simulate field conditions at the extreme of design loads before a unit leaves the factory, positions Powerhouse for large-scale rollout programs.

Strategic Rationale and Broader Market Positioning

Synertec Managing Director Michael Carroll linked the latest orders to a broader shift away from traditional energy supply chains toward flexible, low-emission energy resilient to geopolitical disruption, framing Powerhouse as both a hedge against energy supply disruption for customers and a way for Santos to preserve saleable gas for domestic and international markets rather than using it to generate its own operational electricity. The company describes Powerhouse as applicable across multiple large, accessible energy market segments beyond oil and gas, including mining, critical infrastructure and data centres.

Share Market Context

Synertec Corporation shares were recently trading at $0.043, up 19.44% on the day, according to intraday market data. As a smaller technology and engineering company whose revenue model is built around recurring rental contracts, Synertec's share price is likely to remain sensitive to the pace of new contract wins with Santos and other customers, alongside progress converting its stated pipeline of opportunities across energy, mining and data centre markets into signed agreements.

Conclusion

The addition of two further Powerhouse units to Synertec's Santos contract base extends a relationship that now spans six systems under a consistent BOOM commercial structure, adding to the company's base of recurring rental revenue. With Unit #6 still subject to Santos' final investment sanction, and the broader Powerhouse opportunity dependent on converting a wider pipeline across energy, mining and data centre markets into further signed contracts, the durability of this growth will depend on continued execution and customer investment decisions. Investors following Synertec may wish to monitor confirmation of Santos' final sanction for Unit #6 and any further contract announcements as indicators of the pace of Powerhouse's broader rollout.