15th July 2025
Dear Shareholders,
So much has happened since our last update letter in April that I felt it timely to summarise the positive progress for the project, company and the market opportunity.
Strategic Positioning on the Iron Corridor
As many of you will have seen in the media, the importance of the decarbonisation of marine transport (specifically the ‘iron corridor’ from the Pilbara to Asia) is gaining widespread attention from industry and government alike. NH3 is uniquely positioned to serve this market, being the only material volume clean ammonia project in the Pilbara and on the iron corridor route. This fact is not lost on the mining and shipping companies as they begin to execute their strategies to decarbonise shipping. The three way Joint Development Agreement (JDA) between Pilbara Ports, Oceania and ourselves is specifically designed to deliver integrated clean ammonia bunkering operations by 2030 to service the main export hubs for WA ore and provide refueling for the ships operating on these high-volume routes.
Customer Engagement and Market Demand
In parallel, potential customers continue to confirm orders or lease agreements for ammonia duel fueled bulk carrier vessels for delivery on a similar timeframe to the WAH2 Project coming online. For example, on the 2nd of July BHP announced the order for two ammonia powered vessels. This is on top of the 29 vessel orders that had been announced previously.
Currently approximately 300 bulk carriers export iron ore from the Pilbara to Asia. Thirty two bulk carriers using ammonia as fuel and bunkering exclusively at the Pilbara end of the route would require ~1,200,000 TPA of clean ammonia – more than 90% of the planned production capacity of WAH2 Phases 1 & 2.
It is worth noting that the combined NPV8 for WAH2 Phases 1 & 2 announced in the Pre-Feed results was based on the assumption that Phase 2 would be executed 5 years after Phase 1. If Phase 2 were to be developed more rapidly after Phase 1 in response to market buildup, this would significantly increase the combined NPV8.
Government Alignment and Industry Support
Beyond the private sector, the WA Government has voiced its support for clean ammonia and clean ammonia bunkering as an part of its clean energy economic strategy. We were delighted to have the WA Minister for Energy and Decarbonisation; Manufacturing; Skills and TAFE; Pilbara, the Hon Amber-Jade Sanderson accept our invitation to speak at the recent Clean Ammonia Energy APAC Conference where there was considerable discussion on the opportunity that clean ammonia bunkering offers WA and the role of Government entities such as Pilbara Ports in that business. In addition, WA Premier Cook has expressed his support for clean ammonia, specifically blue ammonia, as a key enabler of decarbonisation.
Common themes in our discussions are NH3’s strong alignment with government strategy (to add value to WA’s natural resources, export clean energy, and establish new energy transition industries) and the critical role that ‘blue’ ammonia has as an enabler for the clean ammonia industry and a foundation for electrolysis-based production in the longer term when it becomes economically viable at scale.
Operational and Strategic Progress
In June, we announced our CO2 Sequestration MoU with the Woodside-operated Angel carbon Capture and Storage Project which includes of BP, Shell, Chevron and MIMI (Mitsui / Mitsubishi). In addition to this being the final ‘piece of the puzzle’ for the production inputs and services, it is further endorsement from highly respected industry players in the opportunity provided by the WAH2 Project.
Alongside bunkering discussions, we continue to engagse with Japanese and Korean groups involving both offtake and strategic agreements including financing (debt, project finance and equity). While these are complex negotiations that take time, the growing momentum around bunkering is helping sharpen the timelines – there will not be room for everyone!
Share Price and Investor Recognition
In my last letter I noted that the Company’s share price was a point of significant frustration. Substantial progress and de-risking had taken place over the prior 12 months and yet there was little recognition in the Company’s valuation. I’m glad to report that the overhang that we had alluded to has been cleared and that has positively impacted the trading dynamics and share price performance.
While we still believe the Company remains undervalued for its stage of development, we now feel confident that progress is being recognised by the market and we’re very glad that the trust and support of our shareholders is being rewarded.
Looking Ahead
We expect the pace of progress to continue to accelerate in the coming months with announcements around government, commercial and operational initiatives. I look forward to keeping you updated and remain available as ever to answer any questions or queries.
Stephen Hall
Chief Executive Officer, NH3 Clean Energy Limited | 
