Hexagon Energy Materials Ltd. and Oceania Marine Energy Pty Ltd., both based in Australia, have signed a Memorandum of Understanding (MOU) for the potential bunkering of low-emissions ammonia in the Pilbara region of Western Australia.
The project will make use of the planned WAH2 Project low-emissions ammonia that is expected to generate 600,000 mt/y of low-emissions ammonia at a site in the Maitland Strategic Industrial Area in Australia, with production targeted for 2028. The ammonia from WAH2 will primarily be used for power generation in Asia, but also potentially as a fuel for Australia to ship iron ore exports in a decarbonized manner.
Under the agreement, Hexagon and Oceania will demonstrate the feasibility of supply of low-carbon ammonia as a bunker fuel for iron ore bulk carriers via ship-to-ship transfer and complete a market assessment and development plan for offtake agreements. It is expected that the work will be completed by Q4 2024.