- Leigh Creek Energy (LCK) has reached a final investment decision (FID) for stage one of the Leigh Creek Energy Project in South Australia
- Achieving a financial investment decision allows Leigh Creek to construct everything it needs to as part of its commercial development plan
- The project will initially produce one million tonnes of urea per annum with the potential to double this output in the futuree
- Once in production, the namesake project will be the only fully integrated urea production facility in Australia, supplying nitrogen-based fertiliser to local and export agriculture markets
- Company shares are down 3.03 per cent and trading at 16 cents
Leigh Creek Energy (LCK) has reached a final investment decision (FID) for stage one of the Leigh Creek Energy Project (LCEP) in South Australia.
LCEP is located 550 kilometres north of Adelaide and is forecast to initially produce one million tonnes per annum of urea. However, this has the potential to increase to two million tonnes per annum.
Once in production, Leigh Creek’s flagship project will supply low-cost nitrogen-based fertiliser for local and export agriculture markets. Importantly, it’ll be the only fully integrated urea production facility in Australia.
“Today’s FID milestone gives us approval to construct everything we need in stage one of our commercial development plan of the LCEP and start earning revenue,” Managing Director Phil Staveley said.
“Having completed the project pre-feasibility study and been awarded a petroleum production licence by the South Australian Government for the commercial production, this FID approval demonstrates the board’s confidence in the economic and commercial viability of the project,” he added.
Now that this milestone has been achieved, Leigh Creek Energy can begin operational activities.
Specifically, the company will start placing orders with suppliers for long lead items and specialty process equipment items.
The first stage commercial development phase will include LCK drilling up to five new syngas wells and installing a power plant that can generate up to five megawatts.
Leigh Creek will fund these activities using existing cash reserves and a finance facility.
Company shares are down 3.03 per cent and trading at 16 cents at market close.