- Strike Energy (STX) will launch a new ammonia and urea manufacturing facility, known as Project Haber, in West Australia’s Perth Basin
- The explorer has indicated it will capitalise on its existing low-cost access from its Perth Basin resources to facilitate domestic production
- In turn, Strike forecasts Project Haber could generate 628 petajoules of additional demand for the gas
- The development comes with a $2.3 billion price tag for a projected 20 to 30 years of useful mine life
- Strike CEO says the development could kick-start Australia’s gas led recovery and adds value to the company’s existing resources
- Strike shares are up a solid 4.62 per cent following the announcement, trading at 34 cents each
Strike Energy (STX) has declared it will be launching a new ammonia and urea manufacturing facility, Project Haber, in West Australia’s Perth Basin.
The explorer has indicated it will capitalise on its existing access to competitively priced gas from its Perth Basin resources to facilitate the project.
In turn, Strike forecasts Project Haber could generate 628 petajoules of additional demand for the gas.
Urea is an organic compound predominantly used as a fertiliser in the agricultural industry. Its production has gradually shifted overseas however due to rising gas prices.
STX has indicated its access to low-cost gas inputs, proximity to transport infrastructure and Australian fertiliser consumers give it a competitive advantage to tackling this gap in the market.
Strike has completed feasibility studies with TechnipFMC on a 1.4 metric tonnes per annum urea production facility with a mixed input of blue and green hydrogen.
The development comes with a US$1.8 billion (around A$2.3 billion) price tag for a projected 20 to 30 years of useful life. STX estimates Project Haber could yield $540 million to $700 million per annum based on current urea prices.
Strike Energy’s Chief Executive Officer and Managing Director, Stuart Nicholls says Australia should look to adding value to its existing resources.
“The launch of Project Haber concludes more than a year of feasibility work by the company aimed at identifying the best way to monetise Strike’s world class gas resources in the Perth Basin,” he explained.
“That work has resulted in this compelling development opportunity, which can kick start Australia’s gas led recovery, and manufacture Western Australia’s natural resources into a product stream the country now relies on global imports for,” Stuart concluded.
Strike says it will begin marketing equity participation in Project Haber towards the end of 2021.
Strike shares are up a solid 4.62 per cent following the announcement, trading at 34 cents each at 2:15 am AEDT.