Hexagon Energy is pressing ahead with its plans to construct its WAH2 low-emissions ammonia project in Western Australia following release of a positive pre-feasibility study.
The engineering and cost estimation study, by energy services company Petrofac, support a commitment to a Pre-Front End Engineering Design (Pre FEED) step which is scheduled to start mid-2023.
The analysis suggested significant project scale with Phase 1 based on a production capacity of 600,000 tonnes of ammonia, doubling to 1,2000,000 tonnes once Phase 2 is operational.
Hexagon has previously secured a 40 hectare site in the Maitland Strategic Industrial Area for the plant.
Hexagon plans to produce competitive, low-carbon, low-risk hydrogen using technology to reform natural gas feedstock, carbon capture and storage (CCS) in depleted gas reservoirs, and harnessing North-Western Australia’s renewable energy potential.
The project is based on fossil fuel so is not ranked as a green industrial project, with the company describing it as ‘blue hydrogen’.
The low-carbon ammonia to be produced is considered to be as an appropriate energy carrier, aligning with customers’ needs for ammonia.
Petrofac estimates the cost of supply at US$552 per tonne of ammonia, with the project targeting less than US$500 per tonne prior to entering FEED based on technologies already identified.
The expected benchmark for the carbon intensity of emissions is 1.1kg of CO2 per kilogram of ammonia produced.
Hexagon said this was ‘better than international benchmarks’.
The company is now progression discussions for ammonia offtake, gas supply, and the provision of carbon capture and storage services utilising depleted gas reservoirs.
Hexagon secures site for ammonia production