Hexagon, Oceania Marine plan ammonia bunkering biz in Western Australia
SUMMARY
The primary market for the WAH2 project’s low-emissions ammonia remains the substitution of coal in thermal power generation in Japan and South Korea.
By Shardul SharmaPOSTED IN:
Hexagon Energy Materials has signed a memorandum of understanding (MoU) with Oceania Marine Energy to explore the development of an ammonia bunkering business in Dampier, situated in the Pilbara region of Western Australia, it said on May 13.
While the primary market for the WAH2 project’s low-emissions ammonia remains the substitution of coal in thermal power generation in Japan and South Korea, ammonia bunkering has the potential to be a valuable, additional, domestic market, the company said. This would involve the supply of low-emissions ammonia as a fuel for the bulk carriers that ship iron ore exports from Australian producers to customers across Asia.
Under the terms of the MoU, Hexagon and Oceania are committed to working together to assess feasibility, confirm demand, define development plans, and engage stakeholders. This collaborative effort will involve ship owners, fuel traders, iron ore producers, port authorities, and government entities to ensure comprehensive market assessment and strategic planning.
The two-year term of the MoU allows for continued collaboration beyond the anticipated final investment decision for Hexagon's WAH2 project. Hexagon said it remains committed to entering the front end engineering design (FEED) phase in mid-2024, pending the completion of technical work and finalisation of commercial agreements. While a bunkering offtake agreement is not mandatory for FEED entry, it presents an opportunity to enhance project value and environmental sustainability, Hexagon stated.
Negotiations are currently underway, and Hexagon is planning to secure key agreements to support the initiation of FEED in Q3 2024.
