Hexagon and Chevron Australia agree on indication of gas supply for WAH2 project
Published by Poppy Clements,
Assistant Editor
Hydrocarbon Engineering,
Hexagon’s WAH2 project plans to produce material volumes of clean ammonia (600 000 tpy, online before 2030) that will be used to displace coal in power generation in Asia, and displace fuel oil and diesel in shipping.
Hexagon plans to secure further agreements for gas supply, CO2 sequestration, infrastructure, and offtake in the coming weeks and months.
The project seeks to replicate Western Australia’s LNG success in making the region a major supplier of clean ammonia to Northeast Asia. The WAH2 project will also assist in decarbonising Western Australia's iron ore shipping sector by providing a local alternative to hydrocarbon marine fuels.
Chevron Australia, General Manager Gas Marketing Australia, Patrick Beashel, said: “As one of Western Australia’s largest producers of domestic gas, we are pleased to have reached agreement with Hexagon for a non-binding indication for the supply of gas to the WAH2 Clean Ammonia Project. The project is an example of the potential of leveraging reliable natural gas supply to produce lower carbon sources of energy.”
Green hydrogen and ammonia have faced significant cost challenges, making them a longer-term goal, while clean ammonia produced from gas and using CCS presents an immediately viable alternative for emissions reduction. Projects like WAH2 can leverage existing technology, offering a more affordable, scalable pathway to decarbonisation that doesn’t rely on new technology breakthroughs.
Hexagon’s WAH2 project highlights Australia’s role in supplying low-emissions energy alternatives on a global scale, leveraging its resources and expertise to meet growing demands for cleaner energy solutions and helping to redefine Australia’s position in the international energy market.
Shipping is a significant contributor to global emissions and the International Maritime Organisation (IMO) has set aggressive targets for decarbonisation. These can only be met by using a different fuel – and using clean ammonia would reduce the emissions of shipping Australian iron ore by 80%. This would be globally significant, given exporting iron-ore from the Pilbara to Asia is the highest-tonnage marine trade route worldwide.
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/05112024/hexagon-and-chevron-australia-agree-on-indication-of-gas-supply-for-wah-project/
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