Oceania Marine Energy Pty Ltd is delighted to announce that it has signed a Memorandum of Understanding (‘MOU’) with Hexagon Energy Materials Limited (ASX: HXG) regarding the potential development of a low-emissions ammonia bunkering business at Dampier, in the Pilbara region of Western Australia.
Under the MOU, Hexagon and Oceania have committed to work together with the intention of:
- Demonstrating the feasibility of the supply of low-emissions ammonia as a bunker fuel for iron
ore bulk carriers via ship-to-ship transfer; - Confirming demand for ammonia bunkering and potential commercial terms;
- Defining an appropriate development plan; and
- Engaging with government and other stakeholders.
This collaboration has the potential to create a new Australian business that uses locally-produced
low-emissions ammonia to help decarbonise Australia’s iron ore exports.
Hexagon and Oceania will jointly engage with stakeholders (including ship owners, fuel traders, iron
ore producers, port authorities and government) to complete their market assessment, develop an
appropriate business model and development plan and pursue preliminary offtake agreements for
low-emissions ammonia as a bunker fuel. It is envisaged that this work will be completed in Q4 2024.
The MOU has a two-year term to allow for subsequent
Managing Director of Oceania Nick Bentley commented:
“Oceania is enthusiastic to work with Hexagon on aligning our low-emissions ammonia production and bunker operations to meet market requirements.
The key objective of our MOU is to demonstrate a viable supply of low-emissions ammonia bunker fuel, developed on a timeline to meet market demand, and in the most efficient location for the iron ore ships transporting Australian iron ore to Asia.
Oceania is thrilled to continue its work alongside Hexagon and Kanfer Shipping to jointly reach our mutual goal of decarbonising shipping.”