Partners announce ammonia bunkering operation in Pilbara as part of new plan

Hexagon Energy Materials (HXG) has partnered with Oceania Marine Energy to establish a low-emission ammonia bunkering business in Dampier, Western Australia. This collaboration aims to create a new Australian company using locally produced, low-emission ammonia to reduce carbon emissions in iron ore exports. The memorandum of understanding (MOU) outlines plans to explore the feasibility of providing low-emission ammonia as a bunker fuel for iron ore bulk carriers through ship-to-ship transfer.

HXG and Oceania will collaborate with various stakeholders, including ship owners, fuel retailers, iron ore producers, port authorities, and government agencies, to conduct a market assessment, develop a business model, and secure preliminary offtake agreements for low-emission ammonia as a bunker fuel. The partners anticipate completing this work by the fourth quarter of 2024. The MOU is set for a two-year period to allow for future collaboration beyond the final investment decision on Hexagon’s WAH2 project.

By leveraging locally produced, low-emission ammonia for bunkering operations in the Pilbara region, HXG and Oceania aim to promote sustainable practices in maritime transportation and contribute to decarbonizing Australia’s key exports. Through their joint efforts, the partners seek to establish a robust business model and secure agreements that support the adoption of low-emission ammonia as a cleaner fuel option for the shipping industry.

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