Hexagon Energy Materials Limited (ASX:HXG) has completed an anticipated low-carbon hydrogen scoping study, which considered the different elements required to deliver such a project and supported progression to a preliminary feasibility study (PFS).

The WAH2 scoping study confirmed the hydrogen project concept, identified opportunities to reduce unit costs, and provided appropriate focus for a PFS, which is on track for completion in the second quarter of 2023.

Specific areas of analysis included hydrogen production methodology; energy carrier solution; site location and availability of land; project scaling and phasing of production; gas supply; carbon capture and storage; production technology alternatives; and identification of enhancements to minimise capital and operating costs.

Hexagon Chairman Charles Whitfield said: “The Scoping Study has built a firm foundation upon which to move the WAH2 project forward.

“Key questions around availability of input gas and carbon dioxide sequestration capacity from already planned providers have been addressed, clearing a major hurdle to the viability of the project.

“The outcomes of the scoping study provide the confidence for the Company to now move ahead with the Preliminary Feasibility Study which is due for completion in quarter two of this year.

“In parallel with this, key commercial discussions with input and service providers, the WA Government, potential off-takers and strategic partners will all be progressed.”