NH3 Clean Energy selects Linde to deliver FEED for the WAH2 project
NH3 Clean Energy Limited has selected Linde Engineering, a subsidiary of Linde, a leading global industrial gases and engineering company, to deliver front-end engineering and design (FEED) for its planned WAH2 clean ammonia project (WAH2 Project) and explore with NH3 potential future models for the execution of the project, including EPC, BOO or O&M to help inform NH3’s evaluation of delivery pathways beyond FEED.
Highlights:
- NH3 received multiple proposals from leading engineering companies to undertake FEED engineering for the WAH2 Project
- Linde Engineering has been selected as FEED engineering partner
- During the FEED the companies will collaborate to:
- Mature plans for Engineering, Procurement, and Construction (‘EPC’) delivery of WAH2 Project elements; where the inclusion of the Construction portion is subject to identification and successful partnering with a suitable Construction contractor
- Evaluate a range of possible commercial and delivery models for the project, including future EPC, Build-Own-Operate (BOO) and Operations and Maintenance (O&M) options. BOO and O&M solutions would offer NH3 the opportunity to reduce capital requirements, reduce exposure to construction risk and access proven, world class operating experience.
Summary. As previously announced to the market, NH3 has been working closely with candidates for the final design, engineering and construction of the WAH2 Project to identify the most appropriate project model - to ensure cost efficiency, minimize execution risk and enable a seamless transition from FEED through project delivery.
NH3 received and has assessed multiple proposals from leading engineering companies to undertake FEED engineering, which would then proceed, subject to a final investment decision, to engagement for construction of the project.
Management has completed its analysis and selected Linde Engineering as its FEED engineering partner for the WAH2 Project. Linde Engineering was selected on the basis of its engineering capability, knowledge of ammonia and related technologies, experience developing and delivering industrial gas plants.
Separately from the FEED award, the parties are assessing a range of delivery models, including EPC, BOO and O&M, on a non‑binding basis. Under a typical BOO model, the contracted provider would be responsible for the financing,
construction, commissioning and operation of agreed elements of the plant. Non-BOO project elements would be delivered through an EPC contract and could be operated via an O&M arrangement. Under a typical O&M model the contracted provider would be responsible for the operations and maintenance of agreed elements of a plant.
Under both BOO and O&M models, NH3 would continue to own and manage the business including remaining the counterparty to all gas supply, water supply, CO2 transport, CO2 sequestration, and infrastructure agreements as well as having ownership of ammonia production and responsibility for ammonia sales.
BOO and O&M solutions offer NH3 the opportunity to reduce capital requirements, reduce exposure to construction risk and access proven, world class operating experience.
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