ASX-listed Hexagon Energy Materials has executed a memorandum of understanding with solar player FRV Australia to collaborate on a potential clean hydrogen hub at Middle Arm in the Northern Territory.

Middle Arm is some 30 kilometres southeast from Darwin near an inland waterway just past the port of Darwin. The Port of Darwin officially oversees the Middle Arm Sustainable Development Precinct. 

The MoU is non-binding; the proposed Middle Arm development is described by Hexagon as "a new potential North Western Australian hydrogen hub development". 

Hexagon notes that it collaborated with FRV in November last year within a consortium as part of an AusIndustry grant application; that application targeted a feasibility study for the h2 hub. 

Both companies are already developing respective hydrogen economy projects within the NT. Hexagon is close to completing a pre-feasibility study on the NT-based hydrogen-focussed Pedirka Project; scheduled for completion by late February. 

That study is analysing the viability of an ammonia production "through hydrocarbon-based hydrogen production with CCS" project. 

Hexagon notes its MoU with FRV "could provide Hexagon access to FRV Australia's mix of renewable energy products to supply the power required for Hexagon's proposed clean Ammonia production plant". 

A renewables-based power source would ultimately reduce carbon emissions on paper, Hexagon notes this would "[require] less CCS". 

FRV manages nine solar farms in Australia; it sells a combined 781MW of electricity into the National Electricity Market. 

"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," Hexagon managing director Merrill Gray said. 

Hexagon shares are down 1.4% to 7cps.

Source: https://www.energynewsbulletin.net/