Calix is pleased to announce today that it has executed a Heads of Agreement with Perdaman, a Western Australian-headquartered multinational organisation, to develop the hydrogen supply solution for Calix’s Zesty Green Iron Demonstration Project in Western Australia (Zesty Project). 

Highlights: 

• The agreement establishes Perdaman as Calix’s hydrogen development partner for the Zesty Project. 

• Perdaman will deliver the engineering and design of a hydrogen supply solution for the Zesty Project required to support a Final Investment Decision (FID). 

• Calix has granted Perdaman a 12-month exclusivity period related to developing the hydrogen supply solution for the Zesty Project. 

• Calix and Perdaman will also work collaboratively to engage with project stakeholders to progress the project towards FID.  

• Future hydrogen supply arrangements for the operational phase of the Zesty Project remain subject to negotiation. 

Hydrogen supply: critical path to FID 

The Zesty Project aims to demonstrate the production of hydrogen direct reduced iron (H-DRI) from multiple iron ore sources and producers at a commercially relevant scale and enable testing of the Zesty H-DRI product in multiple steelmaking pathways. Hydrogen is a key input to the Zesty Project—used as a reductant in combination with electric heating to produce H-DRI from iron ore. Establishing a hydrogen supply solution at the Zesty Project’s location at suitable volumes, time frames and cost is a critical milestone required for the Zesty Project to reach FID.

Perdaman’s hydrogen capability

Perdaman has developed significant capabilities in hydrogen-related industrial production through its energy businesses and major projects in Western Australia. Perdaman’s Project Ceres is a multi-billion dollar project that aims to become Australia’s largest domestic ammonia and urea manufacturing facility. Project Ceres has been awarded Major Project Status by the Australian Government, is designated a Project of State Significance by the Western Australia Government and has received Australian Government funding. Perdaman is also developing Project Helios, creating hydrogen as feedstock for low carbon fertiliser, which has been shortlisted for Australian Government funding from the Australian Renewable Energy Agency’s (ARENA) Hydrogen Headstart program.

Strategic hydrogen partnership

The executed Heads of Agreement establishes Perdaman as Calix’s preferred hydrogen development partner for the Zesty Project. The partnership with Perdaman adds important capability and expertise to the Zesty Project, complementing a strategic partnership with iron ore producer Rio Tinto and Australian Government funding via ARENA.The executed Heads of Agreement establishes Perdaman as Calix’s preferred hydrogen development partner. The partnership with Perdaman adds important capability and expertise to the Zesty Project, complementing a strategic partnership with iron ore producer Rio Tinto and Australian Government funding via ARENA. 

Engineering support for a Final Investment Decision 

Under the binding terms of the Heads of Agreement, Perdaman will further develop the design basis for hydrogen supply to the Zesty Project via an engineering study. This study builds on preliminary engineering work previously undertaken by Perdaman for the Zesty Project and aims to develop a hydrogen supply solution with sufficient detail and cost certainty to enable a FID.

Calix has granted Perdaman an exclusivity period of 12 months in relation to the development of a hydrogen supply solution for the Zesty Project. During this period, Calix and Perdaman will collaboratively engage with stakeholders to progress the Zesty Project towards a FID and intend to establish a hydrogen supply arrangement for the duration of the Zesty Project. 

Calix Managing Director and CEO Phil Hodgson said:  “Developing a viable hydrogen supply solution is a critical step towards enabling the Zesty Project to reach FID. Establishing Perdaman as our hydrogen partner is therefore an important milestone, adding engineering capability and hydrogen-sector expertise to the project. The partnership provides a clear pathway forward and brings us a step closer to demonstrating a globally leading solution for low-emissions iron production in Western Australia.”

Perdaman Founding Chairman and Managing Director, Vikas Rambal said:“Perdaman’s vision to create a better tomorrow aligns perfectly with the Zesty project. The world needs innovation in hard to abate industries and we’re proud to be part of this unique project that could transform the iron ore industry. We will bring our hydrogen expertise and delivery capability together to help make Zesty a global success.”

Source:FuelCellsWorks