Hexagon Energy Materials announced that a scoping study into the WAH2 blue hydrogen project in Western Australia has affirmed the project idea and found opportunities to lower unit costs.

The WAH2 project will generate low-carbon hydrogen by reforming natural gas feedstock, carbon capture and storage (CCS) in depleted gas reservoirs, and utilizing the renewable energy potential of northern Western Australia.

In comparison to liquid hydrogen or liquid organic hydrogen, the hydrogen generated will be transformed into low-carbon ammonia, which has a lower processing and transportation cost and a higher energy efficiency.

The WAH2 project will be developed in stages to reduce risks and coincide with market growth. According to indications, Phase 1 will produce 250 000 t/y of ammonia, and Phase 2 will produce 800 000 t/y.

Subject to the findings of a pre-feasibility study, Hexagon aims to complete front-end engineering design by the fourth quarter of this year. A final investment decision is intended for the fourth quarter of 2024. (PFS).

“A solid foundation has been created by the scoping study for the WAH2 project. A significant barrier to the project’s profitability has been removed by answering key questions about input gas availability and CO2 sequestration capacity from already planned providers, according to Hexagon chairman Charles Whitfield.

The company may now proceed with the PFS, which is scheduled to be finished in the second quarter of this year, thanks to the results of the scoping study. Parallel to this, important commercial conversations will be advanced with input and service suppliers, the government of Western Australia, possible off-takers, and strategic partners.