Hexagon Energy Materials (ASX:HXG) Clean Ammonia Export Project Update

Hexagon Energy Materials Limited (ASX:HXG) is making substantial progress with its WAH2 Project, aiming to become a leading clean ammonia project in Australia. The company has not secured long-term gas supply or funding for the project yet, but it is targeting substantial growth in the low-emissions ammonia market opportunity, which is expected to reach a value of US$10 billion per year by 2035. Hexagon's WAH2 Project is set to produce material volumes of low-emissions ammonia before 2030, aligning with the increasing need for clean energy as 2030 approaches.

Executive Commentary on Hexagon's WAH2 Project

The WAH2 Project is a significant step for Hexagon Energy Materials Limited as it aims to establish itself as a front runner in accessing a high-growth, government-backed market for low-emissions ammonia. The project's strategic advantages, including a secured project site with access to key existing infrastructure and inputs, position it as an advantaged project in the industry. We are actively negotiating the next stages of key inputs and partnerships, and as results become announcable, a flow of agreements is expected, which will de-risk WAH2 economics and re-rate Hexagon's valuation.

Summary of Hexagon's Clean Ammonia Export Project

Hexagon Energy Materials Limited (ASX:HXG) is making significant strides with its WAH2 Project, aiming to become a leading clean ammonia project in Australia. The company is targeting substantial growth in the low-emissions ammonia market opportunity, which is expected to reach a value of US$10 billion per year by 2035. The WAH2 Project is set to produce material volumes of low-emissions ammonia before 2030, aligning with the increasing need for clean energy as 2030 approaches. While Hexagon has not secured long-term gas supply or funding for the project yet, it is actively negotiating the next stages of key inputs and partnerships, which are expected to de-risk WAH2 economics and re-rate Hexagon's valuation. The company's staged financing strategy aims to progress the project with minimum dilution of existing shareholders, and it is targeting the completion of the FEED stage by the end of 2025, representing the next key milestone and pathway to project partnerships.