NH3 Clean Energy has marked significant progress in its WAH2 clean ammonia project, securing major offtake agreements and government facilitation support alongside a $4 million institutional funding round.
- Signed MoUs with Mitsui O.S.K. Lines and ITOCHU Corporation targeting 600,000 TPA clean ammonia demand
- Received WA Government Lead Agency Framework facilitation approval
- Raised $4 million in institutional funding for Front End Engineering and Design (FEED)
- Positive fauna survey results with flora surveys planned
- Ongoing financing discussions including with Northern Australia Infrastructure Facility (NAIF)
Strategic Partnerships Drive Demand Aggregation
NH3 Clean Energy Limited (ASX, NH3) has taken decisive steps forward in the development of its flagship WAH2 clean ammonia project during the December 2025 quarter. Central to this progress are Memoranda of Understanding (MoUs) signed with global shipping giant Mitsui O.S.K. Lines (MOL) and Japanese trading powerhouse ITOCHU Corporation. Together, these agreements aim to aggregate a substantial 600,000 tonnes per annum of clean ammonia demand, signalling strong market interest in low-emission fuels within the Asia Pacific region.
These partnerships complement NH3’s existing Joint Development Agreement with Pilbara Ports Authority and Oceania Marine Energy, reinforcing a collaborative approach to establishing ammonia bunkering operations at the Port of Dampier by 2030. The MoUs reflect a shared ambition to underpin the Final Investment Decision (FID) targeted for the end of 2026.
Government Support and Environmental Progress
NH3’s WAH2 Project has also benefited from formal facilitation support under the Western Australian Government’s Lead Agency Framework. This endorsement streamlines regulatory engagement, enabling the company to navigate approvals more efficiently through the Department of Energy and Economic Diversification. Such government backing is critical in maintaining project momentum amid the complex landscape of energy infrastructure development.
Environmental due diligence advanced positively, with fauna surveys covering both initial and expansion areas revealing no impediments to project timelines. Flora surveys are scheduled for the first quarter of 2026, further underpinning the company’s commitment to responsible development.
Funding and Project Delivery Planning
Financially, NH3 secured $4 million through a private placement to institutional investors, earmarked primarily for Front End Engineering and Design (FEED) activities. This capital injection supports the critical next phase of detailed project planning. Concurrently, NH3 is evaluating proposals from preferred engineering and construction candidates, with submissions expected in February 2026. The company is weighing options between self-financing and third-party Build Own Operate (BOO) models to optimise capital expenditure and financing terms.
Discussions with the Northern Australia Infrastructure Facility (NAIF) are progressing, with NH3 preparing an application for concessional debt financing. An independent public benefits assessment by ACIL Allen Pty Ltd is underway, expected to be completed by the end of March 2026, which will bolster the NAIF funding case.
Broader Portfolio and Corporate Developments
Beyond WAH2, NH3 continues to advance its McIntosh Graphite Project, the fourth largest graphite resource in Australia, with plans for further geophysical surveys in mid-2026. Meanwhile, the company is exploring strategic options for its Halls Creek Project, including potential divestment to focus resources on core assets.
Corporate updates include the appointment of Brent Gardner to the board and the resignation of Philipp Kin. NH3 also remains engaged in legal proceedings with Green Critical Minerals concerning the McIntosh graphite earn-in agreement, a matter the company is vigorously defending.
Outlook
With a cash position of approximately $2.6 million at quarter’s end and a clear pathway to FID by late 2026, NH3 Clean Energy is positioning itself as a leading player in Australia’s clean ammonia sector. The company’s strategic partnerships, government facilitation, and funding progress collectively enhance its prospects to meet growing regional demand for low-emission fuels.
Bottom Line?
NH3’s WAH2 project is gaining momentum, but upcoming FEED outcomes and financing decisions will be pivotal for its future trajectory.
Questions in the middle?
- Will NH3 secure binding offtake agreements beyond current MoUs to solidify project revenue?
- How will the legal dispute with Green Critical Minerals impact NH3’s graphite project timeline and finances?
- What financing structure will NH3 ultimately adopt for WAH2, and how will this affect project risk and capital requirements?