Strike up on major project win

The federal government has awarded Strike Energy’s 1.4 million tonnes per annum urea development major project status, sending shares up 11 per cent.

Project Haber is a proposed $2.3 billion urea fertiliser processing facility set to be built near Geraldton in Western Australia’s Mid West.

The project is tipped to process 1.4mtpa, which Strike says is enough to replace Australia's reliance on annual fertiliser imports of more than $1.5 billion.

According to Strike, the status was granted on Haber’s potential to advance Australia’s downstream manufacturing industry and support integration of lower carbon technologies and renewable hydrogen.

It is believed the project could reduce carbon intensity of the urea used in Australia by 60 per cent.

It follows a $2 million grant given to the project by the state and federal governments in December last year, when it also received lead agency status.

Strike chief executive Stuart Nicholls said the project would help redomesticate urea manufacturing in WA.

“Strike’s Project Haber will create regional jobs, incubate WA’s hydrogen economy whilst making our agriculture sector more competitive and carbon efficient,” Mr Nicholls said in a statement.

Industry, Energy and Emissions Minister Angus Taylor said the project had enormous potential.

“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,” he said.

Project Haber is in the pre-front end engineering design stage.

Strike plans to complete engineering studies in 2022 and starting construction in early 2023.

Strike Energy shares are up 9 per cent and trading at 24 cents.