Hexagon completes pre-feasibility study for Pedirka hydrogen project

Hexagon’s objective is to secure the most commercial, practical and timely pathway to establish a large-scale decarbonised Hydrogen business in Northern Australia. The company completed a comprehensive pre-feasibility study (PFS) on the Pedirka clean hydrogen project. This PFS was based on the initial Pedirka scoping study and, through an extended scope, expanded to analyse broader routes to market.

The completed PFS resulted in the following key findings:

• The production of ammonia (as a hydrogen carrier) is more commercially-viable than liquid hydrogen due to the capital and operational costs associated with handling and transporting liquid hydrogen as a product. Technology developments will, over time, create shifts that Hexagon will position itself on a commercial basis to capitalise on.
• Carbon capture and storage (CCS) or decarbonisation is a major cost consideration in selecting the project location. Minimising the cost of transporting CO₂ for CCS and being able to tap into multi-user, established infrastructure-based business models, to minimise total CCS costs toll charges, is crucial.
• Minimising gross CO₂ production is a key driver of profitability. The use of low-cost renewables as the source of energy in the hydrogen conversion process and onsite CO₂ capture and compression processes, and the potential use of natural gas rather than coal as the hydrocarbon feedstock, will significantly lower Hexagon’s total CCS costs and requirements.
• Locating the hydrogen plant at or near a substantial pre-established port facility brings significant commercial benefits to the project in terms of construction costs and ongoing operational expenses (OpEx).
• Locating the hydrogen plant adjacent to feedstock supply is also critical to minimising raw material logistics costs and, as a result, commercial returns. Low-cost access to local process water supply and infrastructure impacts commercial returns, also.
• Participation in and capitalisation on well-funded hydrogen hub investments that share substantial upfront capital costs (CapEx) will result in improved commercial returns.

Read the article online at: https://www.globalhydrogenreview.com/hydrogen/01032022/hexagon-completes-pre-feasibility-study-for-pedirka-hydrogen-project/