IN a huge step forward for green urea production in Western Australia, Strike Energy's Project Haber has been awarded Major Project Status by the Federal government.
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The status is based on the opportunity that Project Haber offers to advance Australia's downstream manufacturing industry and support the integration of low carbon technologies and renewable hydrogen.
Through the domestication of supply chains, using the best and most current ammonia technology and integrating green hydrogen supplies, the project has the potential to reduce the carbon intensity of the urea used in Australia by 60 per cent.
As the most commonly applied fertiliser in broadacre farming, Project Haber has the potential to play an important role in the reduction of the carbon intensity of Australian farming.
Strike chief executive officer and managing director Stuart Nicholls said Australia had one of the world's greatest endowments of natural resources, whether that is gas, wind, solar or geothermal energy.
"At Strike we believe we should maximise the benefit of those resources for the nation by adding value to them here," Mr Nicholls said.
"By re-domesticating urea manufacturing in WA's Mid West, Strike's Project Haber will create regional jobs, incubate WA's hydrogen economy whilst making our agriculture sector more competitive and carbon efficient."
During COVID-19, supply chains almost ground to a complete halt and exposed Australia's reliance on the import of key inputs including urea.
With the country importing 90pc of its urea, the most commonly used fertiliser in agriculture, it exposed a huge potential problem if farmers were not able to get their hands on it as without urea, crop production would fall 30-40pc.
National Farmers' Federation chief executive officer Tony Mahar said the planned production capacity of the plant in Geraldton of 1.4 million tonnes per annum of urea from clean hydrogen and natural gas, represented a new era of manufacturing capability in Australia.
"It's a blueprint for further manufacturing of critical inputs and agricultural outputs in regional areas," Mr Mahar said.
"We are not suggesting we turn our backs on international trade.
"What Australia needs is domestic capability for critical inputs, so we can keep meeting the strong export demand for our agricultural products.
"The project will be a welcomed economic and social injection into the Mid West region with the plant forecast to create up to 1135 full time jobs during construction and 300 full-time positions during normal operation."
Project Haber has the potential to be strategically important to the Mid West and national economies via long-term, regional job creation during both construction and operations and the resultant substantial import substitution of imported urea.
Federal Minister for Industry, Energy and Emissions Reduction Angus Taylor said Strike Energy's project had enormous potential for job creation and emissions reduction through embracing new technologies and onshore manufacturing.
"The facility has the potential to deliver significant emissions reduction to Australia's urea manufacturing sector through the use of advanced ammonia and gas processing technology, as well as dedicated green hydrogen," Mr Taylor said.
"It also aims to reduce the reliance of Australian farmers on international supply chains to enhance our food security, given more than 90pc of urea is currently imported."
Major Project Status will provide Project Haber with the services of the Major Project Facilitation Agency to streamline approval processes.
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