NH3 Clean Energy (ASX: NH3) (formerly Hexagon Energy Materials) has completed the engineering component of a preliminary front-end engineering and design (pre-FEED) study for its flagship WAH2 low-emissions ammonia project in Western Australia.
The results will be combined with pricing from preliminary commercial agreements between NH3 and its partners to produce updated pre-FEED financial modelling.
Supported by a virtual project data room, the company expects this modelling to form the basis of advanced discussions this month with more than a dozen potential offtake and strategic partners.
The work was completed in collaboration with Petrofac Asset Solutions Australia as lead engineer and Topsoe A/S as core technology provider.
It involved an evaluation of the interrelationships between plant cost, efficiency and emissions profile and defined a single design basis that preserves flexibility to optimise product price and emissions intensity during operations to meet customer preferences.
This flexibility will also allow the project to adjust emissions to meet the eligibility criteria for any potential government subsidies.
Chair Charles Whitfield said the completion of the engineering component was a milestone achievement.
“This represents a significant de-risking of the WAH2 project—it is the largest component of pre-FEED expenditure, so its completion allows us to significantly reduce our cash burn,” he said.
“We are now at a point in the project’s development where strategic parties have indicated that they would be interested in seriously engaging with us.”
One of Australia’s largest ammonia projects, WAH2 aims to supply low-emissions ammonia to customers in decarbonising powerhouse economies of the Asia-Pacific, including Japan and South Korea.
The project will leverage proven technology, strategic partnerships and existing infrastructure – including the deepwater Port of Dampier, existing gas pipelines and mature carbon capture and storage facilities – to deliver at scale by 2030.
NH3 completed a $732,500 share placement in December to advance the completion of the pre-FEED and finalise commercial agreements to support FEED entry.
The company’s management team is in the process of updating the economic model and finalising arrangements for the data room.
免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。