Oceania, Hexagon partner for low emission ammonia bunkering

In Australia, Oceania Marine Energy reported that Oceania Marine Energy and Hexagon Energy Materials Limited have inked a Memorandum of Understanding aimed at developing a low-emissions ammonia bunkering business in Dampier, Western Australia. This partnership marks a significant venture into sustainable shipping practices, particularly targeting the robust iron ore transport routes to Asia.

The primary market for the WAH2 Project’s low-emissions ammonia remains substitution of coal in thermal power generation in Japan and South Korea, ammonia bunkering has the potential to be a valuable, additional, domestic market.

Hexagon and Oceania will jointly engage with stakeholders (including ship owners, 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. It is envisaged that this work will be completed in Q4 2024.

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

Hexagon’s target remains WAH2 front end engineering design (FEED) entry in mid-2024 following completion of planned technical work and finalisation of conditional commercial agreements for key aspects of the project (noting that a bunkering offtake agreement is not considered a pre-requisite for FEED entry, rather an opportunity to add incremental value during FEED). Confidential negotiations continue and Hexagon intends to have the key agreements in place to support the start of FEED in Q3 2024.