NH3’s WAH2 Project Faces Key CCS Partnership Milestone Amid Regulatory Challenges
NH3 Clean Energy has signed a non-binding MoU with the Angel CCS Project JV to collaborate on carbon capture and sequestration for its WAH2 clean ammonia project, marking a key step toward its mid-2025 FEED entry.
- Non-binding MoU signed between NH3 and Angel CCS JV for CO2 sequestration
- Plan to transport and store 650,000 tonnes of CO2 annually offshore
- Supports WAH2 project’s FEED entry targeted for mid-2025
- Final investment decision expected in late 2026 with production start in 2029
- WAH2 aims to supply low-emission ammonia to Asia’s decarbonizing markets
Strategic Collaboration on Carbon Capture
NH3 Clean Energy Limited (ASX, NH3) has taken a significant step forward in its flagship WAH2 clean ammonia project by signing a Memorandum of Understanding (MoU) with the Angel CCS Project Joint Venture, operated by Woodside Energy Ltd. This non-binding agreement outlines a collaborative framework for carbon capture and sequestration (CCS) services, aiming to manage the CO2 emissions generated by the WAH2 project.
The MoU envisions captured CO2 being transported via pipeline offshore to the Angel CCS facility in the Pilbara region, where it will be compressed and permanently stored underground. This partnership is designed to underpin the environmental credentials of WAH2, which targets producing 1.9 million tonnes per annum of clean ammonia with an associated sequestration need of approximately 650,000 tonnes of CO2 annually.
Progressing Toward FEED and Final Investment Decision
The agreement comes as NH3 prepares to enter the Front-End Engineering Design (FEED) phase by mid-2025, a critical milestone that will refine project economics and technical specifications. The MoU sets the stage for subsequent binding commercial agreements and regulatory approvals necessary for the project’s advancement. NH3 anticipates a final investment decision (FID) by late 2026, with production slated to commence in the second half of 2029.
NH3’s Chairman, Charles Whitfield, highlighted the importance of this MoU as a foundational piece in the WAH2 project’s development, emphasizing the company’s commitment to low-emission ammonia production and the acceleration of collaboration with Angel CCS as the project moves closer to FEED.
Positioning for Asia’s Energy Transition
The WAH2 project is strategically positioned to supply decarbonized ammonia to key Asian markets, including Japan and South Korea, which are actively pursuing energy transition strategies. By leveraging renewable energy and integrating CCS technology, NH3 aims to provide a competitive and pure ammonia product that supports the growing demand for low-emission fuels in the region.
Recent pre-FEED results have indicated a potential doubling of project value, reinforcing NH3’s confidence in the WAH2 project’s commercial viability. The company continues to engage with potential off-takers, strategic partners, and financiers, reflecting strong market interest and validation of its clean energy ambitions.
Looking Ahead
While the MoU is non-binding and contingent on future agreements and regulatory approvals, it represents a critical step in integrating CCS into NH3’s clean ammonia production pathway. This collaboration not only enhances the environmental profile of the WAH2 project but also aligns with broader decarbonization goals in Australia and Asia.
Bottom Line?
NH3’s MoU with Angel CCS JV signals growing momentum in clean ammonia production, but binding agreements and regulatory hurdles remain ahead.
Questions in the middle?
- When will NH3 and Angel CCS JV finalize binding commercial agreements?
- How will regulatory approvals impact the timeline for CO2 sequestration operations?
- What are the financial implications of integrating CCS on WAH2’s overall project costs?
