Hexagon Vitality Supplies Ltd. has reached an preliminary cope with Chevron Australia Pty. Ltd. for the availability of fuel for the WAH2 Clear Ammonia Venture. Hexagon mentioned in a media launch that it has agreed to a non-binding Indication for the Provide of Pipeline Fuel with Chevron to facilitate additional discussions between the 2 corporations that may lead towards a fuel sale and buy settlement.
Hexagon added that the settlement, topic to acquiring all required board or administration approvals, needs to be finalized by September 2025, supporting its WAH2 challenge last funding choice, focused for the tip of 2025.
The indication consists of business phrases equivalent to the availability of 33 terajoules of fuel per day from 2029 and an preliminary provide interval of 10 years. The phrases additionally embody a five-year extension possibility and would cowl 60 % of Hexagon’s necessities for the primary part of the WAH2 challenge.
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Hexagon’s WAH2 challenge goals to provide low-carbon ammonia to Asia-Pacific markets, together with Japan, South Korea, and the delivery business. This challenge aligns with Asia’s growing demand for low-emission vitality options, and is anticipated to enter the front-end engineering and design part by the tip of 2024, Hexagon mentioned.
“This is a vital step ahead within the growth of the WAH2 Venture. The Indication for fuel provide is an illustration of the rising confidence within the viability of the clear ammonia enterprise in Australia and its capability to provide the crucial vitality and bunkering markets. The Indication, along with the growing momentum of the Venture, supplies additional help for the Firm’s progress of a number of strategic initiatives to remodel the Firm right into a clear ammonia producer”, Hexagon’s Chairman, Charles Whitfield, mentioned.
Hexagon expects to enter further memoranda of understanding with different events for fuel provide and different features of the WAH2 challenge together with CO2 sequestration, infrastructure, and offtake over the approaching weeks and months, the corporate mentioned.
To contact the writer, electronic mail andreson.n.paul@gmail.com
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