NH3 Clean Energy (ASX: NH3) has received multiple proposals for the front end engineering and design (FEED) component of its flagship WAH2 clean ammonia development in Western Australia.
The proposals – submitted by global engineering firms with experience in ‘blue’ ammonia plants in the state’s harsh Pilbara region – include alternative pathways for self-financing and third-party build-own-operate scenarios.
NH3 has commenced assessment of the proposals to identify the most appropriate project model which will ensure cost efficiency, minimise execution risk and enable a seamless transition from FEED through to delivery.
The company hopes to secure an appropriate commercial agreement with the successful contractor in the coming weeks.
Flora and Vegetation Survey
NH3 has engaged Pilbara Ecological to commence a detailed flora and vegetation survey as part of WAH2’s approvals-related FEED workstream.
The survey will cover the company’s entire 400,000 square metre land allocation in the Pilbara’s Maitland strategic industrial area (SIA) that will accommodate Phase 1 and Phase 2 of the project plus future expansions.
It was timed for after the recent wet season to ensure credible results and follows a fauna survey conducted over the same area in September which found no sign of conservation-listed fauna species and indicated there were no issues that would delay progress.
The WAH2 project aims to supply low-emissions ammonia to decarbonising powerhouse economies in the Asia-Pacific including Japan and South Korea, and be a source of decarbonised ‘bunker’ fuel for powering bulk iron ore carriers from Australia to Asia.
The project is well-positioned to capitalise on the energy transition currently driving increasing demand for low emissions energy in the Asia region.
Further Execution Milestones
NH3 chair Charles Whitfield said receipt of the proposals and the commencement of the surveys mark further major milestones in the project’s development.
“They reflect that there has been no slowdown in activity, and a huge amount of work is progressing on commercial agreements, financing, and approvals,” he said.
“The ongoing engagement we have had with world-class builders and operators underlines the strong industry position that WAH2 has achieved—the next round of announcements will provide yet more clarity on financing and the other aspects of the execution pathway.”
NH3 anticipates FEED entry by mid-year, with a final investment decision by year end and production to start in the second half of 2029.
