Join our daily newsletter At The Bell to receive exclusive market insights
- Strike Energy’s (STX) proposed Project Haber is set to reduce Australia’s carbon footprint by up to 60 per cent and deliver billions in gross domestic product
- The proposed project would use modern ammonia and gas processing technology as well as dedicated green hydrogen inputs to lower Australia’s urea consumption and deliver a significant carbon reduction
- Advisory firm ACIL Allen’s economic assessment estimated the project could deliver up to $8.4 billion of gross domestic product over its lifetime, along with a 3.78-per-cent boost to the local economy
- Strike says it intends to kick off a competitive process to bring in equity partners and fund the capital requirements of the project in Q4 2021
- Ahead of market open, Strike Energy last traded at 35.5 cents per share
Strike Energy’s (STX) proposed Project Haber is set to reduce Australia’s carbon footprint by up to 60 per cent and deliver billions in gross domestic product.
Australia currently imports more than 95 per cent of the urea it consumes for agricultural uses. This results in a high carbon intensive product with a carbon footprint that Australian consumers have minimal control over.
Through the use of modern ammonia and gas processing technology, high quality nearby conventional gas, domestic supply chains and dedicated green hydrogen inputs, Strike’s Project Haber has the potential to deliver a significant carbon reduction to Australia’s urea consumption.
If successful, Strike’s project will position Australia as one of the lowest carbon urea producing regions globally.
The project will be located in the WA Government’s Narngulu Strategic Industrial Estate, where Strike has secured an option to lease 60 hectares of strategically located land.
Project Haber has the potential to reduce Australia’s urea fertiliser carbon dioxide equivalent footprint by 50 to 60 per cent from, when compared to 2019’s levels. This is equivalent to 650,000 to 795,000 tonnes of carbon dioxide equivalent per year.
Advisory firm ACIL Allen completed an economic impact assessment, estimating Project Haber’s effect on the mid-west region alone is larger than the impact of a major LNG project across the whole of Western Australia.
The report also estimated that over the life of the project, $8.4 billion of gross domestic product could be delivered, along with an average gross regional product of $230 million per year in the mid-west, equivalent to a 3.78-per-cent boost to the local economy. The project could also create around 1135 full time jobs during its construction phase and an average of 283 jobs in the mid-west region for 30 years to come.
“Project Haber is fast becoming a project of national significance as Strike continues to identify additional economic and environmental benefits,” said Strike Energy CEO and Managing Director Stuart Nicholls.
“Reducing the carbon intensity of Australia’s agriculture will be complemented by a structural reduction in the costs of urea in Australia.”
“This is a huge benefit for Australian farmers as they will be able to reduce their CO2 exposure in parallel to supporting the domestic economy.”
ACIL Allen estimates Project Haber will generate $10.3 billion of real income benefits across Australia, or $303 million per annum between 2022 and 2056.
Strike says it intends to kick off a competitive process to bring in equity partners and fund the capital requirements of the project in Q4 2021.
Ahead of market open, Strike Energy last traded at 35.5 cents per share.
