NEWS
ADBLUE SUPPLY BOOSTED BY STRIKE ENERGY
Urea is an ingredient in AdBlue which reduces road haulage emissions.
Strike Energy and Leigh Creek Energy (LCK) have taken pivotal steps to solidify Australia’s domestic supply of urea, as the country deflects an AdBlue shortage. Urea is a key ingredient in the diesel exhaust fluid, AdBlue, which is used by diesel-powered vehicles to reduce emissions and meet environmental regulations. The developments follow the creation of a government taskforce which has been managing the shorter than usual supply of urea from China. Strike Energy’s Haber project in the Narngulu Industrial Area, near Geraldton, Western Australia, looms as a promising measure to secure Australia’s domestic supply of the resource. The $3 billion urea manufacturing facility received Major Project Status from the Federal Government in
early February which will streamline approvals, support and coordination of the project. The facility is expected to produce 1.4 million tonnes of urea per year – powered by hydrogen and natural gas – creating about 1135 full-time jobs over its three-year construction and 300 full-time jobs once operational for a 30-year lifetime.
“THE FACILITY HAS THE POTENTIAL TO DELIVER SIGNIFICANT EMISSIONS REDUCTION TO AUSTRALIA’S UREA MANUFACTURING SECTOR THROUGH USE OF ADVANCED AMMONIA AND GAS PROCESSING TECHNOLOGY, AND CLEAN HYDROGEN.” ANGUS TAYLOR FEDERAL MINISTER FOR INDUSTRY AND ENERGY
“It also aims to reduce the reliance of Australian farmers on international supply chains to enhance our food security, given more than 90 per cent of urea is currently imported.” The Leigh Creek urea project (LCUP) has also presented as an important supply of Australian urea, particularly as multinational Incitec Pivot will be closing its Brisbane manufacturing hub in December. At the request of the Austalian Government, Incitec Pivot has increased its AdBlue production by about three million litres per week to satisfy the demand curbed by overseas markets. Located 550 kilometres north of Adelaide, the LCUP will initially produce one million tonnes of urea per year, with the potential to double this in the future. The December quarter of 2021 saw Leigh Creek Energy progress stage 2 of the front-end engineering and design (FEED), secure an offtake agreement for 500,000 tonnes per year for five years, and secure ministerial approval under the Aboriginal Heritage Act.
Federal Minister for Industry, Energy and Emissions Reduction Angus Taylor said the facility was important for people and the environment.
Leigh Creek managing director Phil Stavely said the project had ticked off a significant milestone in sustainable operations.
“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 clean hydrogen,” Taylor said.
“At LCK, we are very proud of the forward steps we are taking in our development of ESG (environment, social and governance),” Stavely said. “Critical is the fact that LCUP will be carbon-neutral from 2022, eight years earlier than previously planned.” •
CONSTRUCTION GROGGY IN THE NEW YEAR: PCI The Australian Performance of Construction Index (PCI) fell by 11.1 points over the Christmas/New Year period, with COVID-19 isolations and supply chain disruptions wreaking havoc. Presented by the Australian Industry Group (Ai Group) and the Housing Industry Association (HIA), the seasonally adjusted Australian PCI fell to 45.9 during December and January – where results below 50 points indicate contraction of the industry. “The Australian construction industry continued its volatile run of the past six months with a slump in performance over
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December and January,” Ai Group’s chief policy advisor Peter Burn said. “This latest downturn was driven by disruptions to labour supply, material supplies and business and household confidence associated with the rapid spread of the Omicron strain.” Overall activity fell 18.9 points to a score of 41.1, with apartments and commercial activity the biggest losers in the category, falling to 34.9 and 29.3 points respectively. New orders fell 10.8 points to a score of 47.7, while employment was the only metric to remain above 50 points, scoring 56.5.
HIA economist Tom Devitt said the next 12 months in construction would look far different from 2021 but activity would be positive. “Home builders are still limited by the availability of land, labour and materials. The HomeBuilder pipeline has only recently started reaching completion, with many more completions to come,” Devitt said. “Ongoing demand as part of the shift in homebuyer preferences towards more space and greater amenity will continue to keep builders busy into 2023.” •
Quarry March 2022
Quarr
