“There is a clear and increasing need for clean ammonia globally to help the world decarbonise, and our project, WAH2, is the best placed project in Australia.” — Stephen Hall, CEO
Clean Ammonia will play an essential role in the energy transition.
Through its flagship WAH2 Project, Hexagon intends to supply low-emissions ammonia to the decarbonising powerhouse economies of the Asia-Pacific, leveraging ammonia’s advantages as a hydrogen carrier and its direct use in clean power generation.
There have been a number of developments in the hydrogen/ammonia market environment during the first half of 2024. This update letter from the CEO 21/08/2024 recaps these developments, and outlines Hexagon’s positioning with WAH2 in this environment.
Background to the WAH2 low-emissions ammonia project
In May 2023 the Western Australian Government approved allocation of land for WAH2 in the preferred location in the Maitland Strategic Industrial Area (SIA) proximal to existing services, an existing infrastructure corridor and established export routes.
This best places the project to deliver competitive, low-carbon, low-risk hydrogen using proven technology to reform natural gas feedstock, carbon capture and storage (CCS) in depleted gas reservoirs to produce low-carbon ammonia (NH3) for export via the Port of Dampier.
Strong market pull for clean ammonia is being driven by Government support in Japan and elsewhere – while Australian Government support is encouraging supply development.
Project Progress
In August 2023, Hexagon announced the completion of the WAH2 Pre-Feasibility Study and based on the encouraging results commenced Pre-FEED studies. Technical activities are being led by Petrofac Asset Solutions Australia Ltd (Petrofac) as lead engineer and Topsoe A/S (Topsoe) as technology provider.
The Pre-FEED studies and ongoing commercial discussions with potential partners are intended to support FEED entry in mid-2024.
Read ASX Announcement, 29 January 2024, WAH2 Project Gaining Momentum
In March 2024, Hexagon signed a Key Terms Agreement (KTA) with the WA Water Corporation. Under the KTA the two parties have committed to negotiate with the intention of executing a definitive agreement for the supply of water to the WAH2 project.
Read ASX Announcement, 1 March 2024, WAH2 Key Terms Agreement.
In June 2024, Hexagon signed a Memorandum of Understanding (MoU) with Oceania Marine Energy Pty Ltd (‘Oceania’) to establish a low-emissions ammonia bunkering business as a valuable, additional, domestic market for the WAH2 Project.
Read ASX Announcement, 13 May 2024 WAH2 Project Ammonia Bunkering Memorandum of Understanding.
