PERTH (miningweekly.com) – ASX-listed Hexagon Energy Materials has tapped north-western Australia as the most commercially attractive location for a planned clean hydrogen project.

The company has completed a prefeasibility study (PFS) on the Pedirka project, in the Northern Territory, and concluded that proceeding with a clean hydrogen project using Pedirka sourced feedstock was not in shareholders' best interest.

Instead, the company has identified a clean hydrogen opportunity in Western Australia, and has started work to secure a position on a more rapidly-realisable project, and one more likely to deliver a commercial return.

The PFS highlighted that the production of ammonia, as a hydrogen carrier, would be more commercially viable than a liquid hydrogen product and that carbon capture and storage (CCS) or decarbonisation would be a major cost consideration in selecting the project location.

The PFS also noted that locating the proposed hydrogen plant at or near substantial pre-established port facilities would result in significant commercial benefits, while locating the plant adjacent to feedstock supply would also be critical in minimising raw material logistics costs.

The PFS has confirmed that natural gas was Hexagon’s preferred hydrogen feedstock.

The company on Tuesday told shareholders that an application for over 80 ha of land available for lease within the Ashburton North Strategic Industrial Area was lodged in January, and that this application would be expanded to include the Burrup and Maitland strategic industrial areas.

Negotiations over CCS toll treatment services, as well as natural gas supply were under way, while the company has also inked a memorandum of understanding with FRV Australia for renewable energy supply for the hydrogen project.

Discussions with potential ammonia customers and strategic investors were also under way.