NH3’s Ammonia Export Plans Hinge on Pilbara Ports MoU Amid Decarbonisation Push
NH3 Clean Energy has signed a non-binding Memorandum of Understanding with Pilbara Ports Authority to explore exporting 600,000 tonnes per annum of clean ammonia from its WAH2 Project, marking a key step in Australia's clean energy export ambitions.
- Non-binding MoU signed with Pilbara Ports for ammonia export logistics
- Phase 1 targets 600,000 tonnes per annum of clean ammonia shipment
- Exports to be handled via Port of Dampier Bulk Liquids Berth
- Ammonia bunkering to support decarbonisation of Pilbara iron ore exports
- Project progressing towards FEED entry by end of Q1 2025 and FID in H1 2026
Strategic Partnership for Clean Ammonia Export
NH3 Clean Energy Limited (ASX: NH3) has taken a significant step forward in its clean energy ambitions by signing a Memorandum of Understanding (MoU) with the Pilbara Ports Authority. This non-binding agreement sets the framework for collaboration over the next 12 months to establish operational arrangements and binding contracts for exporting clean ammonia produced from NH3's flagship WAH2 Project.
The MoU outlines plans to ship 600,000 tonnes per annum (TPA) of clean ammonia through the Port of Dampier's Bulk Liquids Berth. This volume represents the Phase 1 production target and is a critical milestone in NH3's strategy to position Australia as a key supplier of low-emission ammonia to Asia-Pacific markets.
Infrastructure and Decarbonisation Synergies
Ammonia will be transported from the WAH2 plant to the port via a new pipeline within an existing infrastructure corridor, ensuring efficient and safe logistics. The shipment will cater to both export customers and ammonia bunkering vessels, the latter being part of NH3's broader vision to decarbonise maritime fuel.
Notably, the ammonia bunkering vessel will supply clean fuel to bulk carriers exporting iron ore from the Pilbara region. This initiative aligns with global efforts to reduce carbon emissions in shipping and could establish the Port of Dampier as a pioneering clean fuel bunkering hub, enhancing Australia's green credentials in resource exports.
Project Progress and Market Engagement
The MoU announcement follows a series of recent milestones, including the completion of Pre-FEED engineering, securing gas supply indications, and agreements on CO2 transportation. These technical and commercial foundations underpin NH3's target to enter Front End Engineering and Design (FEED) by the end of Q1 2025, with a Final Investment Decision (FID) anticipated in the first half of 2026.
NH3 is actively engaging with over a dozen potential offtake and strategic partners, signaling robust market interest in clean ammonia as a future energy vector. The company plans to open a project data room in February to facilitate deeper commercial discussions, which will be critical to transitioning from non-binding agreements to firm contracts.
Leadership Perspective and Industry Implications
NH3's Chairman, Charles Whitfield, expressed optimism about the partnership, highlighting Pilbara Ports' enthusiasm for becoming a key hub in the international clean ammonia market and marine fuel supply chain. He emphasized the increasing pace of project milestones as NH3 drives toward FID, reflecting confidence in the project's viability and strategic importance.
This collaboration not only advances NH3's commercial objectives but also contributes to Australia's broader energy transition goals. By facilitating large-scale clean ammonia exports and enabling decarbonised shipping fuel, the WAH2 Project could play a pivotal role in reducing carbon footprints across multiple sectors.
Bottom Line?
NH3 Clean Energy’s MoU with Pilbara Ports marks a pivotal step toward commercialising clean ammonia exports, setting the stage for Australia’s emerging role in the global hydrogen economy.
Questions in the middle?
- When will NH3 and Pilbara Ports finalize binding export and bunkering agreements?
- How will NH3 secure long-term offtake contracts to underpin the WAH2 Project’s financing?
- What regulatory or infrastructure challenges could impact ammonia export volumes or timelines?
