INTERVIEW: Australia’s NH3 Clean Energy targeting WAH2 project FID by year-end: chairman

Australia's NH3 Clean Energy aims to take a final investment decision on its WAH2 project by year-end, with commercial ammonia-bunkering operations set to start in 2030, aiding the use of cleaner fuels to accelerate decarbonization, Chairman Charles Whitfield told Platts, part of S&P Global Energy, in an interview.

The WAH2 project is NH3's flagship project to supply low-emissions ammonia. The project is targeting not only powering bulk carriers carrying iron ore from Australia to Asia for sustainable shipping but also meeting the power needs of the Asia-Pacific region, including the Japanese and South Korean markets, as they decarbonize, Whitfield said.

The WAH2 Clean Ammonia Project is one of the few projects that becomes even more important in the light of the conflict, due to its supply from a geopolitically stable source and its proximity to the Asia market, without relying on transshipment through maritime "pinch points", according to Whitfield.

The Pilbara to Asia route, also known as the Iron Corridor, is the world's largest shipping route by tonnage. So, it is of prime importance to introduce clean marine fuels, Whitfield said.

NH3 Clean Energy plans to offer blue ammonia bunker fuel to customers at the two major Pilbara ports — Port Hedland and the Port of Dampier —with first production at WAH2 targeted for the end of 2029. Phase 1 will entail a total blue ammonia production of 650,000 metric tons per year, and pre-FEED cost estimates are about $600/metric ton, making the project "very cost-competitive", Whitfield said.

Natural gas serves as feedstock for the project, Whitfield shared.

"So, we get gas from the North West Shelf, and that comes onshore at Dampier. The Dampier Bunbury pipeline takes that gas towards Perth, and our plant is right next to that pipeline. So, supplies are secure," Whitfield said, reflecting minimal costs as additional infrastructure requirements are diminished.

The company secures gas under Western Australia's Dom Gas Policy. That gas is sold at a fixed-price basis, and while it is inflation-linked, it is not linked to global gas or oil indexes, according to Whitfield.

"So, we are not exposed to supply risks and volatile prices, particularly amid uncertain global geopolitics such as the prevailing Middle East crisis," he said.

"That is very attractive for our customers because our input prices are fixed under long-term supply contracts, offering buyers a smooth and secure portfolio," he added.

Meanwhile, some Asian buyers have been sitting on the edge of a volcano in terms of their risk profile related to energy dependence on the Middle East, according to Whitfield.

With the Middle East conflict, "that volcano is erupting currently", emphasizing the need to diversify their energy sources, Whitfield said, adding that this will drive the push for using a blend of ammonia and coal in thermal stations, offering many Asian economies the flexibility of maintaining coal-fired power stations while also cutting emissions by blending ammonia.

Forging partnerships

NH3 Clean Energy has also forged numerous agreements to bring together the various elements of the supply chain ecosystem.

In June 2025, NH3 Clean Energy inked a joint development agreement with Oceania Marine Energy, the operator of the bunkering vessel to provide ammonia via ship-to-ship transfers, and the Pilbara Ports Authority, a government enterprise that controls and manages the Port of Dampier, oversees safety in the port waters, and issues bunkering licenses, Whitfield shared.

The company signed an MOU with Mitsui O.S.K. Lines, Ltd, which builds on the existing JDA between NH3, Pilbara Ports, and Oceania Marine to establish an ammonia hub in the Pilbara by 2030.

More recently, NH3 Clean Energy also inked a deal with Japan's Itochu Corp. to build further on the JDA.

The agreement aims to aggregate 300,000 TPA of demand to be supplied by NH3's planned WAH2 Project, investigate financing options, and support the FID.

Whitfield is optimistic about ammonia's future as a bunkering fuel.

"Compared to other alternative marine fuels such as methanol and LNG, we feel ammonia has key advantages," Whitefield said, adding that it is scalable and is carbon-free when combusted.

LNG has low emissions, but it is not zero-carbon by any means, and future regulatory frameworks will determine how LNG gets treated from an emissions perspective, Whitfield said.

As far as bio-methanol is concerned, it is a question of scale, Whitfield opined. "If you are looking to produce methanol from bio-waste, aggregating enough green waste near a processing hub and having that available at a point where it is required for bunkering is quite challenging," he said.

Meanwhile, Whitfield said that some people were disparaging clean ammonia due to the challenges facing the cost and availability of "green" electrolysis-based production.

However, blue ammonia does not face these issues as it is an established technology, plentiful, and a low-cost option, according to Whitfield.

Platts assessed Australia Renewable-derived Ammonia delivered into Far East Asia, with high-capacity factors at $761.61/mt on June 1, down 0.12% from a month ago. It assessed conventional ammonia CFR, Far East Asia at $800/mt on June 5, up about 3.90% from a month ago.