Hexagon signs MoU with FRV Australia

In November 2021 Hexagon and FRV Australia collaborated as consortium partners on an AusIndustry grant application in relation to a Middle Arm, Darwin, Hydrogen Hub Feasibility Study. The application was made under the ‘Activating a Regional Hydrogen Industry – Clean Hydrogen Industrial Hubs: Hub Development and Design’ programme, and led to this MoU and further collaborations.

Both Hexagon and FRV Australia are already progressing individual clean hydrogen and renewable energy projects at or near Middle Arm, Darwin, each of which are fully funded in terms of pre-feasibility studies. FRV Australia has also secured funding for further studies and the construction stage for its hydrogen and renewable energy project.

Hexagon is currently in the final stages of a Pre-Feasibility Study (PFS) on its Northern Territory hydrogen project (formally called Pedirka Project). The PFS is scheduled for completion by 28 February 2022.

The PFS centres on decarbonised (zero net carbon emission) ammonia production (as a hydrogen carrier), through hydrocarbon-based hydrogen production with CCS. The project is targeting production of up to 1.6 million tpy of ammonia or 300 000 tpy hydrogen equivalent. The Middle Arm Sustainable Development Precinct at the Port of Darwin is expected to have a number of critical clean hydrogen project and hub components such as access to established, large-scale CO₂ geosequestration infrastructure and reservoirs (CCS) and port (export) infrastructure.

Collaboration between FRV Australia and Hexagon under the MoU announced could provide Hexagon access to FRV Australia’s mix of renewable energy products to supply the power required for Hexagon’s proposed hydrogen (clean ammonia) production plant. This would see less CO₂ generated from Hexagon’s blue hydrogen production facilities, requiring less CCS, therefore lowering overall production costs for Hexagon’s projects.

FRV Australia is indirectly owned 51% by Fotowatio Renewable Ventures S.L. (FRV) and 49% by OMERS, one of Canada’s largest defined benefit pension plans.

Globally, FRV and its affiliated companies have installed 2 GW of renewable energy generation with another 560 MW under construction, with several green hydrogen projects constructed and in operation abroad, ranging from <1 MW to 20 MW in size.

FRV Australia has successfully developed nine solar farms in Australia that are currently producing a combined total of 781 MW of electricity sold into the National Electricity Market (NEM) and is currently developing additional projects within the Northern Territory including its 29 MW Berrimah Solar Farm where installation of an electrolyser is under assessment. The company’s team includes green hydrogen plant design and equipment supply specialists, solar engineer professionals, construction and project management professionals and commercial analysts as well as a dedicated asset management team.

The next steps will be to identify and scope specific hydrogen projects to potentially move to conditional Heads of Agreement and onto binding commercial agreements. Hexagon is a future energy materials company focused on the clean energy transition of which hydrogen is a cornerstone. In addition to the NT Hydrogen and WA Hydrogen projects Hexagon holds highly prospective assets including the McIntosh Nickel-Copper, PGE Graphite Project and the Halls Creek Gold and Base Metals Project.

The company’s vision for its Australian hydrogen business is to deliver clean hydrogen in the most economical form into export and domestic markets at scale over the coming four years. This non-binding MoU with FRV has the potential to deliver large quantities of low-cost renewable energy for use in hydrogen production supporting delivery into this vision.

Read the article online at: https://www.globalhydrogenreview.com/hydrogen/24012022/hexagon-signs-mou-with-frv-australia/