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Hexagon signs agreement for ammonia project

Water Corporation

Hexagon Energy Materials has signed a key terms agreement with Water Corporation of Western Australia for its WAH2 low-emissions ammonia project.

The two companies will work together to confirm a water supply solution for Hexagon’s WAH2 low-emissions ammonia project and negotiating a definitive agreement for the supply of water to the project.

“This Key Terms Agreement with the Water Corporation is a significant step for Hexagon’s WAH2 low-emissions ammonia project and is the first of an anticipated series of announcements as Hexagon progresses confidential negotiations with key input providers, potential off-takers and strategic partners,” Hexagon chief executive officer Stephen Hall said.

“Execution of the Key Terms Agreement supports removal of the capital costs associated with a dedicated desalination plant and associated pipelines from the Base Case, a reduction of the project’s power and fuel gas requirements, and the scope of environmental and regulatory approvals to be significantly reduced and derisked.”

Through the project, Hexagon intends to supply low-emissions ammonia to Asia Pacific markets, leveraging ammonia’s advantages as a hydrogen carrier and use in power generation.

The project aims to be an early moved to accelerate schedule and reduce both project risk and costs.

In April 2023, Hexagon was allocated land for the project in the Maitland Strategic Industrial Area by the WA Government.

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