NH3 Clean Energy (ASX:NH3) began the front-end engineering and Design (FEED) phase of its WAH2 clean ammonia project in Western Australia, according to a Wednesday Australian bourse filing.

It started work on two of the three workstreams that comprise FEED, approvals, which include fauna, flora, and heritage surveys, and commercial, which includes advancing offtake and partnership agreements towards binding status at the final investment decision.

The firm is in confidential discussions with several counterparties who could offer materially different pathways to production. It will begin work on the engineering workstream once it finalizes talks with parties who could participate in the construction, commissioning, or operation of the facilities.

Its shares rose 8% in recent trading on Wednesday.