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Plans to build a major low-carbon fertiliser production plant in Western Australia have been moved from Geraldton, in the Mid West, 100 kilometres south to the Shire of Three Springs.
Key points:
- Strike Energy moves plans for a $3 billion fertiliser project to Three Springs
- Removing the requirement for a gas pipeline to Geraldton will save $100 million and expedite the project
- The 30-year project is expected to provide 300 jobs in the region
Oil and gas exploration company Strike Energy plans to use gas from its Perth Basin discovery, as well as wind and solar-generated electricity, to make at least 1.4 million tonnes of urea fertiliser each year.
If the $3 billion plant goes ahead, Project Haber will manufacture three-quarters of Australia's urea fertiliser needs.
The company will pay $13.5 million for 3,500 hectares of freehold farmland that sits above the gas reserves, 50 kilometres west of the town of Three Springs.
Farmland will be used to create a low-carbon, integrated energy, and industrial manufacturing centre with plans to co-locate gas and urea production with wind and solar energy generation as well as carbon sequestration.
Strike Energy managing director Stuart Nicholls said co-locating the urea plant with the gas resource would remove the need to build a pipeline to Geraldton and reduce capital cost by roughly $100 million.
"As we worked through the various approval milestones that we needed to achieve in order to be able to build the plant in the Narngulu location out the back of Geraldton, the gas pipe from the gas field straight up to the plant really stood out as a weak point in our approvals timelines and ability to get into construction as soon as possible."
Hopes to attract more projects to precinct
The company hoped similar low-carbon, high-energy manufacturing projects would co-locate at the precinct in the future.
"Building products are quite energy intensive, things like cement as well as the refining and upgrading of mineral resources like lithium or rare earths," Mr Nicholls said.
Three Springs is a farming and talc mining community currently home to almost 600 people.
Project Haber is expected to employ 300 people for at least 30 years.
Three Springs shire president Chris Lane said she was very excited about the prospect.
She said the area was currently enjoying interest from other potential renewable energy projects and is well placed for industrial manufacturing.
Strike Energy expects a final investment decision on Project Haber to be made in the middle of 2023.