Strike plans new venue for major urea project

John Poynton-chaired Strike Energy has bought 3,500 hectares of farming land in the Three Springs Shire for a low carbon manufacturing precinct anchored by Project Haber.

Strike has signed a binding contract to acquire the land for $13.5 million as a site for the planned Mid West Low Carbon Manufacturing Precinct.

Situated above the South Eregulla gas fields, Strike says it plans to develop the space into a low carbon integrated energy and industrial manufacturing centre with the potential for a wind farm, solar plant and carbon farming land.

There is scope for up to 100 megawatts of wind resource, 1-megawatt hour per three-hectare of land for solar power generation and 1,500 hectares of land allocated for carbon offsetting, Strike estimated.

The company said it does not plan to be owner or operator of the renewable energy developments or carbon farm and is anticipating that other proponents will join Strike in developing the precinct.

Strike’s Project Haber, which was granted major project status by the federal government earlier this year, will be relocated as one of the first developments at the precinct.

The $2.3 billion 1.4 million tonnes per annum urea operation was initially set to be built near Geraldton.

Sole offtake partner Koch Fertilizer, of multinational conglomerate Koch Industries, is set to acquire 100 per cent of granulated urea from Haber once it becomes operational.

In relocating Haber, Strike estimates it could save up to $85 million by removing the need for a 105 kilometre gas pipeline between Haber and Geraldton, as well as removing the process of obtaining access arrangements.

Strike chief executive Stuart Nicholls said the precinct would support the company is producing low cost and low carbon fertliser.

“Strike continues to display sectoral leadership through its strategic development approach at Project Haber, in utilising its natural resource endowment in partnership with world class renewable energy in the Mid West to manufacture globally low carbon critical agricultural commodities,” Mr Nicholls said.

WA Deputy Premier Roger Cook said the state strongly endorsed Strike’s decision to integrate the Mid West’s renewable energy opportunities.

“The pursuit of a low-carbon manufacturing precinct has the opportunity to generate substantial regional prosperity through major job creation and import substitution,” Mr Cook said.

“Through projects like this, Western Australia continues to demonstrate that it will be a global development powerhouse in the transition to a low carbon and ultimately net zero economy.”

Strike Energy shares last traded at 30 cents.