WAH2 Project NPV Surges to A$603M Geared; Production Capacity Rises to 650 kTPA

Strong Technical and Economic Progress on WAH2 Project

NH3 Clean Energy (ASX: NH3) has delivered a robust quarterly update for the period ending 31 March 2025, highlighting a doubling in the economic value of its flagship WAH2 clean ammonia project. The completion of Pre-Front End Engineering Design (Pre-FEED) has confirmed the technical viability and commercial potential of the project, with the ungeared Net Present Value (NPV8) for Phase 1 rising sharply from A$248 million in the Pre-Feasibility Study to A$493 million.

In addition, geared company-level NPV8 for Phase 1 stands at A$603 million, with combined Phase 1 and 2 NPV8 reaching an impressive A$1.14 billion. The project’s Phase 1 production capacity has also been revised upward from 600,000 tonnes per annum (kTPA) to 650 kTPA, reflecting operational efficiencies identified during Pre-FEED.

Strategic Partnerships and Export Pathways

NH3 Clean Energy has cemented a key strategic milestone by executing a Memorandum of Understanding (MoU) with the Pilbara Ports Authority. This agreement lays the groundwork for the export of clean ammonia from the WAH2 project, positioning NH3 to serve growing demand in Asia’s decarbonising energy markets, particularly Japan and South Korea.

In parallel, the company is advancing confidential commercial discussions related to CO2 sequestration and infrastructure sharing, which could further reduce capital expenditure and enhance project value. These initiatives underscore NH3’s integrated approach to delivering a competitive and sustainable ammonia supply chain.

Capital Raising and Financial Position

To support ongoing development activities, NH3 completed a capital raise of A$600,000 during the quarter through a combination of equity issuance and convertible notes. The equity component involved issuing 15 million fully paid ordinary shares at $0.02 per share, while the convertible notes provide additional flexibility for future funding linked to share price performance.

At quarter-end, NH3 reported a cash balance of A$607,000 and maintains active discussions to secure further funding necessary for advancing the WAH2 project and other assets.

Broader Asset Portfolio and Legal Developments

Beyond WAH2, NH3 continues to progress its mineral assets, including the McIntosh graphite project in Western Australia and the Halls Creek exploration projects. Notably, the company is engaged in legal proceedings with Green Critical Minerals concerning the McIntosh project earn-in agreement, which NH3 contests as without merit and is defending vigorously.

NH3’s diversified portfolio and ongoing exploration efforts complement its clean energy ambitions, though investors should monitor the outcomes of these legal matters as they may impact asset development timelines.

Outlook and Next Steps

With Pre-FEED complete, NH3 is targeting entry into Front End Engineering Design (FEED) by mid-2025, contingent on securing binding off-take and strategic partnership agreements. The final investment decision is anticipated by mid-2026, aiming for production commencement by mid-2029.

NH3’s strategic positioning in the clean ammonia sector, combined with its recent technical and commercial progress, places it well to capitalize on Asia’s energy transition. However, the company’s ability to finalize commercial agreements and secure sufficient funding will be critical to sustaining momentum.