Hexagon and FRV sign MoU for clean hydrogen hub

Map highlighting Darwin region (FRV Hexagon)
Image: Shutterstock

Hexagon has signed a non-binding Memorandum of Understanding (MoU) with large-scale, renewable energy company FRV Australia.

The MoU covers a collaboration for a potential clean hydrogen hub at Middle Arm, Darwin, in the Northern Territory, a new potential North Western Australian Hydrogen Hub development and other collaborations elsewhere in Australia.

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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. 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 (NT) Hydrogen project (formally called Pedirka Project).

Collaboration between FRV Australia and Hexagon under the MoU announced today 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 has successfully developed nine solar farms in Australia that are currently producing a combined total of 781MW of electricity sold into the National Electricity Market (NEM) and is currently developing additional projects within the Northern Territory including its 29MW Berrimah Solar Farm, where installation of an electrolyser is under assessment.

Hexagon managing director Merrill Gray said, “We have been assessing all options available to progress our NT (Pedirka) Hydrogen project. This MoU underpins a potentially important step forward for us in realising efficiencies and in improving the commercial viability for our base case decarbonised ammonia production plant.

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“This MoU with FRV Australia is one of many important opportunities and collaborations, both in the NT and other locations, that will help to realise our objective in establishing the most practical pathway for Hexagon to achieve large scale, long term, commercial, clean hydrogen production in Australia.”

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.