Partners unveil plan for ammonia bunkering operation in Pilbara

Hexagon Energy Materials (HXG) has entered into a memorandum of understanding (MOU) with Oceania Marine Energy regarding the development of a low-emissions ammonia bunkering business at Dampier in the Pilbara region of Western Australia.

HXG said the collaboration has the potential to create a new Australian business that uses locally-produced, low-emissions ammonia to help decarbonise Australia's iron ore exports.

Under the MOU, Hexagon and Oceania have committed to work together with the intention of:

• Demonstrating the feasibility of the supply of low-emissions ammonia as a bunker fuel for iron
  ore bulk carriers via ship-to-ship transfer;
• Confirming demand for ammonia bunkering and potential commercial terms;
• Defining an appropriate development plan; and
• Engaging with government and other stakeholders.

HXG and Oceania will jointly engage with stakeholders (including shipowners, fuel traders, iron ore producers, port authorities, and government) to complete their market assessment, develop an appropriate business model and development plan, and pursue preliminary offtake agreements for low-emissions ammonia as a bunker fuel. The partners expect the work will be completed in the fourth quarter of 2024.

The MOU has a two-year term to allow for subsequent collaboration past the anticipated final investment decision for Hexagon's WAH2 Project.