NH3 Clean Energy formerly Hexagon Energy Materials Limited is pleased to announce that it completed the Engineering component of its
Preliminary - Front End Engineering and Design “Pre-FEED” in January consistent with previous
guidance to the market.
HIGHLIGHTS
• Preliminary-FEED Engineering completed on budget.
• Engineering identifies significant opportunities for emissions and cost optimisation.
• Design maintains flexibility to meet customer preferences and eligibility criteria of potential
government subsidies.
• Technical results and pricing from preliminary commercial agreements, will be used in
updated Pre-FEED financial modelling and strategic discussions.
• Strategic engagement accelerating, with discussions underway with potential partners to
advance commercial and offtake agreements.
EXECUTIVE SUMMARY
NH3 is delighted to update the market that, as of January month end, the Company has
completed the Pre-FEED engineering and design work for its flagship WAH2 clean ammonia
project. The technical work has been completed in collaboration with Petrofac Asset Solutions
Australia Ltd as Lead engineer and Topsoe A/S as core technology provider.
Pre-FEED technical work has involved considerable evaluation of the interrelationships between
plant cost, efficiency and emissions profile. A single design basis for FEED has been defined
that preserves the flexibility to optimise product price and emissions intensity during operations
to meet customer preferences. This flexibility also allows the project to adjust emissions
considering the eligibility criteria of any potential government subsidies.
The results of the completed technical work will be combined with pricing from the preliminary
commercial agreements, that NH3 has already entered into, to produce updated Pre-FEED
financial modelling.
The completed technical work, preliminary commercial agreements and Pre-FEED financial
modelling are the basis for the next stage of strategic and customer discussions. These will be
supported by a WAH2 Project data room in February.
The Company is already engaged with more than a dozen potential offtake and strategic
partners and management are now in the process of updating the economic model and finalising
arrangements for a virtual data-room.
Chairman Charles Whitfield commented:
“Completion of Pre-FEED engineering represents a major milestone for the WAH2 Project. It
represents a significant de-risking of the project and is the point in the project’s development at
which strategic parties had indicated that they would be interested to seriously engage. It also
represented the largest component of Pre-FEED expenditure so its completion allows the
Company to reduce cash burn.”
1. WAH2
The WAH2 Project is NH3’s flagship project to supply low-emissions ammonia to the
decarbonising powerhouse economies of the Asia Pacific, including Japan and South Korea.
The project is well placed as Asia’s energy transition drives an increasing demand for low
emissions energy.
Authorisation
This announcement has been authorised by the Board of Directors.
