Australian duo eyes ammonia bunkering enterprise options

Australian Hexagon Vitality Components has signed a memorandum of knowledge (MoU) with compatriot Oceania Maritime Strength pertaining to the probable improvement of a small-emissions ammonia bunkering small business at Dampier, in the Pilbara location of Western Australia.

Less than the MoU, Hexagon and Oceania have fully commited to perform together with the intention of demonstrating the feasibility of the provide of small-emissions ammonia as a bunker gas for iron ore bulk carriers via ship-to-ship transfer, confirming the desire for ammonia bunkering and possible industrial terms, defining an ideal progress plan and participating with government and other stakeholders.

Hexagon reported the two get-togethers will jointly interact with stakeholders, like ship entrepreneurs, gasoline traders, iron ore producers, port authorities and federal government to comprehensive their market evaluation, develop an suitable company product and progress approach and go after preliminary offtake agreements for small-emissions ammonia as a bunker gas.

It is envisaged that this function will be done in Q4 2024, Hexagon extra, stating that the MoU has a two-year phrase to allow for subsequent collaboration earlier the expected remaining financial commitment choice (FID) for Hexagon’s flagship WAH2 project that intends to offer low-emissions ammonia to the decarbonizing economies of the Asia Pacific, which includes Japan and South Korea.

Hexagon discovered that the company’s concentrate on stays WAH2’s entrance-finish engineering layout (FEED) entry in mid-2024 following the completion of planned complex operate and finalization of conditional commercial agreements for important facets of the venture, noting that a bunkering offtake agreement is not regarded a pre-requisite for FEED entry, instead an possibility to increase incremental price during FEED. The organization intends to have the critical agreements in location to assist the commence of FEED in Q3 2024.

The WAH2 job programs to use “proven” technologies to change normal fuel into ammonia, as very well as to seize and sequester a lot more than 90% of the associated CO2 to deliver 600 kTPA of reduced-emissions ammonia. This lower-emissions ammonia would then be transported by pipeline to the Port of Dampier exactly where it would be loaded on to fuel provider ships for export. The first manufacturing is targeted for late 2028.

Stephen Corridor, Chief Government Officer (CEO) of Hexagon, commented: “This Memorandum of Being familiar with with Oceania Maritime Energy signifies a different sizeable phase for Hexagon’s WAH2 reduced-emissions ammonia job. It gives the prospect to set up a new bunkering marketplace in Western Australia that could enjoy a top function in decarbonising Australia’s iron ore exports for the profit of Australia and its trading companions in Asia.”

“This possibility presents current market variety, requires no extra cash expenditure and is complementary to Hexagon’s principal aim of exporting lower-emissions ammonia from WAH2 to support decarbonise electricity era in Asia. I seem forward to generating further more announcements as Hexagon proceeds to development confidential negotiations with important enter vendors, potential off-takers and strategic partners.”

Nick Bentley, Controlling Director of Oceania, stated: “Oceania is enthusiastic to do the job with Hexagon on aligning our minimal-emissions ammonia production and bunker functions to satisfy sector necessities. The key aim of our MOU is to exhibit a viable supply of very low-emissions ammonia bunker gas, developed on a timeline to meet market place desire, and in the most effective place for the iron ore ships transporting Australian iron ore to Asia.”

To be aware, Oceania Maritime Strength aims to offer low-emissions fuel, these kinds of as ammonia, to iron ore carriers through ship-to-ship transfer and has a focus on of providing over 1 million tonnes of very low-carbon maritime fuel by 2030.

In 2022, Oceania accomplished its feasibility research into the bunkering of ammonia at Dampier, and according to Hexagon, considering that then, it has continued to do the job with stakeholders across the value chain towards the establishment of a ‘Green Delivery Corridor’ involving Australia and Asia.