The variety of firms aiming to money in on WA’s fertiliser growth is rising with an oil and fuel junior unveiling plans to develop a urea plant at Narngulu, close to Geraldton.
Strike Vitality this week introduced an formidable $2.three billion proposal to construct an enormous urea plant in WA to assist commercialise its fuel assets within the Perth Basin and make “costly” urea imports a factor of the previous.
The proposal — topic to monetary assist from companions — has been dubbed Challenge Haber and includes constructing a urea plant close to Geraldton to service WA and interstate fertiliser markets at the moment reliant on imports.
Strike hopes the plant can be up and operating by late 2023, producing 1.Four million tonnes of urea per 12 months for 30 years — greater than 70 per cent of the your complete 1.9 million tonnes of urea Australian farmers use every year.
Strike Vitality chief government Stuart Nicholls stated the venture would create 100 jobs throughout building and generate as much as $700 million revenue a 12 months.
He hoped the venture would break floor early subsequent 12 months.
“We want to conduct an offtake tender on the finish of the 12 months, for main urea customers to safe a few of our product,” Mr Nicholls stated.
“We’ll then have a look at debt financing for fairness parters. Strike is more likely to find yourself with a 30 per cent stake.”
Strike’s announcement comes after Nutrien Ag Options and CBH Fertiliser revealed separate plans to considerably increase their WA fertiliser storage capability.
Nutrien Ag Options final month introduced it will construct a 50,000-tonne liquid urea storage facility at Coogee Chemical substances’ Kwinana web site.
We want to conduct an offtake tender on the finish of the 12 months, for main urea customers to safe a few of our product.
In October, CBH Fertiliser revealed it will construct a $50m fertiliser storage facility at Kwinana to retailer 128,000 tonnes of granular and liquid fertiliser.
Mr Nicholls stated Strike’s entry to globally aggressive fuel would allow it to succeed after the worth of manufacturing native urea skyrocketed because of the rising price of vitality.
“Fertiliser is a operate of pure fuel, so it had been a depressed marketplace for Australia for a very long time earlier than fuel and vitality costs rose to a worth that you just can not make it domestically anymore,” he stated.
“We’d suppose that our product goes to be cheaper than the imported worth.”
Mr Nicholls stated the corporate was additionally on the hunt for storage places in WA, South Australia and Victoria to retailer between 300,000 and 600,000 tonnes of urea.
Challenge Haber would be a part of a pipeline of urea manufacturing and storage tasks in WA headed by Perdaman Industries’ $4.5b plant deliberate for Karratha.
Strike Vitality is partnering with Warrego Vitality within the improvement of its West Erregulla fuel subject within the Perth Basin, which is underpinned by cornerstone provide contracts with clients together with Alcoa and Wesfarmers.
The corporate stated the proposed urea plant would supply a brand new marketplace for its wider Perth Basin fuel assets, absorbing than 628 petajoules of fuel over 20 years and serving to monetise its robust place within the area.
Strike has secured an choice from the WA Authorities over a 60ha web site on the Narngulu industrial property in Geraldton, which has entry to Geraldton Port and State rail and highway networks.
We’d suppose that our product goes to be cheaper than the imported worth.
The design contains an 800,000-tonnes-a-year manufacturing practice, 300,000 tonnes of on-site urea storage, energy/utilities and steam era, rail sidings for transport and a 120km uncooked fuel pipeline.
Entrance-end engineering and design, nonetheless, would rely on Strike securing offtake agreements for at the very least 80 per cent of the urea.
Strike stated 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 12 months.