NH3 Clean Energy finalises key agreement to advance WAH2 low-emissions ammonia project in the Pilbara

NH3 Clean Energy (ASX: NH3) has signed a joint development agreement (JDA) with Pilbara Ports Authority and Oceania Marine Energy to establish the WAH2 low-emissions ammonia bunkering project.

The project will service iron ore carriers and support decarbonisation of the Pilbara-to-Asia maritime corridor.

NH3 expects to complete the WAH2 project, located at the Port of Dampier in Western Australia, in 2030.

Integrated scope of work

The JDA outlines an integrated scope of work to confirm the technical feasibility of the bunkering operation and ensure primary environmental and regulatory approvals are in place to support final investment decisions for WAH2, bunker vessels and any port infrastructure by the end of 2026.

Under the terms of the agreement, NH3 will supply low-emissions ammonia from WAH2, with Pilbara Ports responsible for the control and management of the Port of Dampier.

Pilbara Ports will issue bunkering licences and maintain safe operations within port waters, while Oceania will operate bunker vessels to supply low-emissions ammonia via ship-to-ship transfer.

Important step

NH3 chair Charles Whitfield said the JDA builds on previous collaborations with Pilbara Ports and Oceania Marine and is an important step towards future agreements with bunkering customers.

“This agreement sets a pathway for WA to become a global leader in the decarbonisation of maritime transport,” he said.

“The scale of the Pilbara-to-Asia maritime corridor creates a globally significant opportunity to reduce greenhouse emissions and we are excited to join with Pilbara Ports and Oceania to make this a reality.”

Fuel transition

Pilbara Ports chief executive officer Sam McSkimming said the organisation was proud to partner with NH3 and Oceania.

“With approximately 4,000 bulk export vessels and more than 1,000 distinct bulk carriers visiting our ports annually, the Pilbara is a natural beachhead to kick-start the clean fuel transition,” he said.

“The green iron corridor between the Pilbara and East Asia has the scale, stable demand, port infrastructure and risk management experience to support the significant investment that maritime decarbonisation requires.”

Low-emissions ammonia

NH3’s flagship WAH2 project will supply low-emissions ammonia to the Asia-Pacific’s decarbonising powerhouse economies, including Japan and South Korea.

The company expects WAH2 to become a source of decarbonised ‘bunker’ fuel for powering bulk iron ore export vessels travelling from Australia to Asia.

NH3 confirmed it had completed all pre-FEED (front-end engineering and design) technical work and begun securing strategic partners and offtake agreements.

It anticipates FEED entry by mid-year, with a final investment decision by the end of 2026 and production to start in the second half of 2029.