Ann: MoU signed with international solar company FRV, page-2

MoU signed with international solar company FRV
across potential hydrogen collaborations.
Hexagon Energy Materials Limited (ASX:HXG, “Hexagon” or “the Company”) has signed a non-binding
Memorandum of Understanding (MoU) with well-established, large scale, renewable energy company,
FRV Services Australia Pty Ltd (FRV Australia). This 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.
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. The application
was made under the “Activating a Regional Hydrogen Industry – Clean Hydrogen Industrial Hubs: Hub
Development and Design program” and led to this MoU and further collaborations.
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). The PFS is scheduled for completion by 28 February
2022 (HXG ASX Announcement: 22 December 2021). The PFS centres on decarbonised (zero net carbon
emission) ammonia production (as a hydrogen carrier), through hydrocarbon-based hydrogen production
with CCS. The project is targeting production of up to 1.6 million tonnes per annum (t.p.a.) of ammonia
or 300,000 t.p.a. hydrogen equivalent. The Middle Arm Sustainable Development Precinct at the Port of
Darwin is expected to have a number of critical clean hydrogen project and hub components such as
access to established, large scale CO2 geo-sequestration infrastructure and reservoirs (Carbon Capture
and Storage (CCS)) and port (export) infrastructure.
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 is indirectly owned 51% by Fotowatio Renewable Ventures S.L. (FRV) and 49% by OMERS,
one of Canada’s largest defined benefit pension plans