Aspiring gasoline producer Strike Power has introduced an bold $2.three billion proposal to construct one other WA urea plant — within the Geraldton industrial suburb of Narngulu — to assist commercialise its gasoline assets within the Perth Basin.
Strike mentioned on Monday that topic to monetary help from companions, the plant can be inbuilt Geraldton and repair WA and interstate fertiliser markets reliant on imports.
The proposal joins a pipeline of urea manufacturing and storage initiatives in WA, headed by Perdaman Industries’ $4.5b plant deliberate for Karratha.
Strike Power is partnering with Warrego Power within the improvement of its West Erregulla gasoline discipline within the Perth Basin — south-east of Dongara — which is underpinned by cornerstone provide contracts with clients together with Alcoa and Wesfarmers.
Gasoline will likely be piped 120km from the gasoline discipline and changed into ammonia and urea in Narngulu, south of Iluka Assets’ operations.
Strike Power introduced plans for the challenge after gaining a long-term lease over a 60ha website, the place it intends to construct its personal rail siding.
Often called Mission Haber, the design additionally contains an 800-kilotonne every year ammonia manufacturing prepare, 300-kilotonne on-site urea storage, energy and steam technology.
Strike Power chief govt Stuart Nicholls mentioned rail would transport urea to ships on the port for motion to the east coast.
“Returning empty trains could present a superb alternative to effectively distribute and retailer urea all through the State,” he mentioned.
Mr Nicholls mentioned Australia must be including worth to its pure assets, somewhat than simply exporting them for others to high-grade and promote again to us.
“As soon as in manufacturing, Mission Haber can help the competitiveness of Australia’s agricultural industries by decreasing one of many fundamental prices of inputs into Australian farms, all while using regional West Australians,” he mentioned.
Mr Nicholls mentioned Mission Haber was a “carbon-conscious improvement” and changing gasoline to urea meant a portion of the challenge’s carbon was returned to the soil. “Additionally, with the applying of rising applied sciences, the event will start a transition to combine as a lot renewable power into its hydrogen enter stream as it may possibly over time,” he mentioned.
The challenge is anticipated to final 30 years, and Strike plans to safe offtake agreements for as much as 80 per cent of the product earlier than coming into front-end engineering and design for the challenge.
Mr Nicholls mentioned the corporate deliberate to make use of rising quantities of inexperienced hydrogen within the manufacturing course of because it grew to become out there.
The corporate mentioned the proposed urea plant would offer a brand new marketplace for its wider Perth Basin gasoline assets, absorbing some 628 petajoules of gasoline over 20 years and serving to monetise its sturdy place within the area.
Strike shares had been 1¢ up at 33.5¢ as at 11am, capitalising the corporate at $585 million.
The corporate mentioned the proposal was supported by feasibility research by it and TechnipFMC on a 1.4-million-tonnes-a-year plant, which might generate as much as $700m in annual revenues.
Strike has secured an possibility from the WA Authorities over a 60ha website on the Narngulu industrial property in Geraldton, which has entry to Geraldton port and State rail and highway networks.
“The design of the ability contains an 800,000-tonnes-a-year manufacturing prepare, 300,000 tonnes of on-site urea storage, energy/utilities and steam technology, rail sidings for transport and a 120km uncooked gasoline pipeline from the Perth Basin,” it mentioned.
Entrance-end engineering and design, nonetheless, would rely upon Strike securing offtake agreements for a minimum of 80 per cent of the urea.
“Strike has entered into discussions with a number of events with an curiosity in securing offtake and/or fairness within the challenge,” the corporate mentioned, noting it will intention to retain a 30 per cent carried curiosity in a improvement.
The plant can be “primarily targeted on assembly the wants of Australian farmers, with surplus product to be made out there to worldwide markets, it mentioned.
Strike mentioned the event’s location would give it a bonus in servicing the Wheatbelt area, which accounts for 30 per cent of Australia’s urea consumption.
Geraldton Port alone already imports greater than 260,000 tonnes of fertiliser a yr.