NH3 Clean Energy Ltd. (West Perth, Australia) has selected Linde Engineering (Pullach, Germany) to deliver Front End Engineering and Design (FEED) for its planned WAH2 clean ammonia project and explore with NH3 Clean Energy potential future models for the execution of the project, including Engineering, Procurement, and Construction (EPC), Build-Own-Operate (BOO) or Operations and Maintenance (O&M) to help inform NH3’s evaluation of delivery pathways beyond FEED.
• During the FEED the companies will collaborate to:
o Mature plans for Engineering, Procurement, and Construction (EPC) delivery of WAH2 Project elements; where the inclusion of the Construction portion is subject to identification and successful partnering with a suitable Construction contractor; and
o Evaluate a range of possible commercial and delivery models for the project, including future EPC, BOO and O&M
options. BOO and O&M solutions would offer NH3 the opportunity to reduce capital requirements, reduce exposure to construction risk and access proven, world class operating experience.
The WAH2 Project is NH3’s flagship project to supply low-emissions ammonia to the decarbonizing powerhouse economies of the Asia Pacific, including Japan and South Korea as well as being a source of decarbonized ‘bunker’ fuel for powering bulk carriers carrying iron ore from Australia to Asia. The project is well placed as Asia’s energy transition drives an increasing demand for low emissions energy
NH3’s Chairman, Charles Whitfield, commented: “The appointment of Linde to deliver FEED is a landmark milestone for the WAH2 project and
demonstrates the prominent position of the project in the ammonia fuel industry. Linde has vast experience in the construction, commissioning and operation of hydrogen and ammonia plants around the world. In parallel with the FEED, we will be evaluating potential Build Own Operate and Operations and Maintenance models as part of selecting the future execution pathway. Aside from selecting a FEED engineering partner NH3 has demonstrated a high degree of confidence in customer demand (MOL and ITOCHU), its approvals pathway (facilitated under the Lead Agency Framework), and now financing and execution options.”
As previously announced to the market2, NH3 has been working closely with candidates for the final design, engineering and construction of the WAH2 Project to identify the most appropriate project model – to ensure cost efficiency, minimise execution risk and enable a seamless transition from FEED through project delivery.
NH3 received and has assessed multiple proposals from leading engineering companies to undertake FEED engineering, which would then proceed, subject to a final investment decision, to engagement for construction of the project.
Management has completed its analysis and selected Linde Engineering as its FEED engineering partner for the WAH2 Project. Linde Engineering was selected on the basis of its engineering capability, knowledge of ammonia and related technologies, experience developing and delivering industrial gas plants.
Separately from the FEED award, the parties are assessing a range of delivery models, including EPC, BOO and O&M, on a non‑binding basis. Under a typical BOO model, the contracted provider would be responsible for the financing, construction, commissioning and operation of agreed elements of the plant. Non-BOO project elements would be delivered through an EPC contract and could be operated via an O&M arrangement. Under a typical O&M model the contracted provider would be responsible for the operations and maintenance of agreed elements of a plant.
Under both BOO and O&M models, NH3 would continue to own and manage the business including remaining the counterparty to all gas supply, water supply, CO2 transport, CO2 sequestration, and infrastructure agreements as well as having ownership of ammonia production and responsibility for ammonia sales. BOO and O&M solutions offer NH3 the opportunity to reduce capital requirements, reduce exposure to construction risk and access proven, world class operating experience.