02-02-2025

NH3 Clean Energy completes pre-FEED engineering for WAH2 project

NH3 Clean Energy formerly Hexagon Energy Materials Limited is pleased to announce that it completed the Engineering component of its Preliminary - Front End Engineering and Design “Pre-FEED” in January consistent with previous guidance to the market.

Highlights
- Preliminary-FEED Engineering completed on budget.
- Engineering identifies significant opportunities for emissions and cost optimisation.•Design maintains flexibility to meet customer preferences and eligibility criteria of potential government subsidies.
- Technical results and pricing from preliminary commercial agreements, will be used in updated Pre-FEED financial modelling and strategic discussions.
- Strategic engagement accelerating, with discussions underway with potential partners to advance commercial and offtake agreements.

Executive Summary
NH3 is delighted to update the market that, as of January month end, the Company has completed the Pre-FEED engineering and design work for its flagship WAH2 clean ammonia project. The technical work has been completed in collaboration with Petrofac Asset Solutions Australia Ltd as Lead engineer and Topsoe A/S as core technology provider.

Pre-FEED technical work has involved considerable evaluation of the interrelationships between plant cost, efficiency and emissions profile. A single design basis for FEED has been defined that preserves the flexibility to optimise product price and emissions intensity during operations to meet customer preferences. This flexibility also allows the project to adjust emissions considering the eligibility criteria of any potential government subsidies.

The results of the completed technical work will be combined with pricing from the preliminary commercial agreements, that NH3 has already entered into, to produce updated Pre-FEED financial modelling.

The completed technical work, preliminary commercial agreements and Pre-FEED financial modelling are the basis for the next stage of strategic and customer discussions. These will be supported by a WAH2 Project data room in February.

The Company is already engaged with more than a dozen potential offtake and strategic partners and management are now in the process of updating the economic model and finalising arrangements for a virtual data-room.

Chairman Charles Whitfield commented “Completion of Pre-FEED engineering represents a major milestone for the WAH2 Project. It represents a significant de-risking of the project and is the point in the project’s development at which strategic parties had indicated that they would be interested to seriously engage. It also represented the largest component of Pre-FEED expenditure so its completion allows the Company to reduce cash burn.”