Hexagon's hydrogen project proves promising
PERTH (miningweekly.com) – A scoping study into the WAH2 blue hydrogen project, in Western Australia, has confirmed the project concept and has identified opportunities to reduce unit costs, ASX-listed Hexagon Energy Materials said on Wednesday.
The WAH2 facility will produce low carbon hydrogen by using proven technology to reform natural gas feedstock, carbon capture and storage (CCS) in depleted gas reservoirs and harnessing northern Western Australia’s renewable energy potential.
The hydrogen produced will be converted to low-carbon ammonia, offering reduced processing and transportation costs and greater energy-efficiency than the alternatives of liquid hydrogen or liquid organic hydrogen.
Development of the WAH2 project will be phased to manage risks and align with market development. Indicatively, Phase 1 will produce 250 000 t/y of ammonia, increasing to 800 000 t/y in Phase 2.
Hexagon is targeting front-end engineering design by the fourth quarter of this year, with a final investment decision targeted for the fourth quarter of 2024, subject to the results of a prefeasibility study (PFS).
“The scoping study has built a firm foundation upon which to move the WAH2 project forward. Key questions around availability of input gas and CO2 sequestration capacity from already planned providers have been addressed, clearing a major hurdle to the viability of the project,” said Hexagon chairperson Charles Whitfield.
“The outcomes of the scoping study provide the confidence for the company to now move ahead with the PFS which is due for completion in the second quarter of this year. In parallel with this, key commercial discussions with input and service providers, the Western Australian government, potential offtakers and strategic partners will all be progressed.”
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