Hexagon Energy secures land for West Aussie ammonia project
Sydney-listed Hexagon Energy Materials has received approval from the Western Australian government for its application regarding the preferred site for the WAH2 ammonia project, the company said on May 15.
The project aims to produce low-emissions ammonia for the Asian market, particularly Japan and South Korea, as well as provide domestic supply to Australia.
The 40-hectare site in the Maitland Strategic Industrial Area was chosen due to its proximity to existing services, infrastructure corridor, and established export routes, Hexagon said. The company will now proceed with discussions with DevelopmentWA to finalise land tenure terms.
The approval of land allocation is seen as a transformative step in creating a globally competitive, multi-product industrial precinct and decarbonising emissions on the Burrup Peninsula.
Hexagon's chairman, Charles Whitfield, sees this milestone as a significant achievement that will pave the way for advancing strategic partnerships and formalising other key components of the project in the near future.
Discussions regarding ammonia offtake, project structuring and project participation will start in Q2 2023.
The WAH2 project will utilise proven technology to reform natural gas and produce hydrogen. Accordiong to Hexagon, the project's feed-gas requirement is relatively small compared to the Western Australian gas market, and there are multiple potential suppliers with access to existing distribution infrastructure.
The produced hydrogen will then be converted into ammonia. To achieve low-emissions hydrogen and ammonia production, the project will involve the capture and storage of CO2 in depleted gas reservoirs.
There are several credible options for CO2 sequestration being developed in proximity to the WAH2 project, the company said. Joint ventures operated by Santos and Woodside have been awarded greenhouse gas assessment permits for CO2 sequestration (G-9-AP and G-10-AP, respectively), and the Australian Gas Infrastructure Group is exploring the potential use of its Tubridgi asset for CO2 sequestration.