Project Haber Enters pre-FEED

Source: www.gulfoilandgas.com 4/9/2021, Location: Not categorized

- Technip Energies commences pre-FEED on Strike’s Project Haber urea fertilizer facility in Geraldton, WA.
- Expressions of Interest for Project Haber’s 1.4 mtpa urea offtake is already heavily oversubscribed by both Australian and international buyers.
- Logistics studies from GHD, confirm Project Haber’s domestic transportation advantages versus international urea competitors.

Strike Energy Limited provides an update on Project Haber, for the proposed 1.4 mtpa urea production facility to be built in Geraldton, WA.

Pre-FEED

Offtake Process Update
Strike’s Technip Energies who completed the feasibility studies on Project Haber have commenced the Pre-FEED scope of work to further refine the capital cost estimate for the plant which currently sits at US$1.74 bln. Technip Energies has included in their scope chemical process engineering works in order to maximize the amount of inherent carbon consumed from the natural gas via the manufacturing process. Strike has also engaged with JBS&G Strategen to start the environmental approvals and planning process which will be a key pre-FID long lead activity.

urea offtake process has been met with overwhelming support from both Australian and International buyers. Current expressions for long term offtake varying between 3 to 10 years exceed Project Haber’s proposed 1.4 mtpa supply. More than 12 buyers have participated in the process to date with further expressions of interest currently being received.

Green Hydrogen Inputs
Technip Energies and their technology provider Haldor Topsoe have commenced studies to maximize the amount of green hydrogen inputs into Project Haber’s urea manufacturing process. Strike already plans to provide 2% of the hydrogen input via its own 10MW electrolysis unit that would to be powered by Strike’s potential geothermal resources in the Perth Basin.

Other green hydrogen developers and future suppliers in the region have engaged with Strike in order to seek sale of green hydrogen/ammonia products to Project Haber which when built will be the largest hydrogen and ammonia consuming facility in Australia. Strike is excited to be in a position to support the potential hydrogen revolution on the Mid-West coast of Western Australia.

Project Haber Logistics
Strike in partnership with GHD have completed transportation and logistics studies which supports Project Haber’s positioning as not only WA’s lowest cost source of urea fertilizer but also South Eastern Australia’s. Shipping advantages when compared to the main international competitors’ range between A$5-25/t for deliveries from Geraldton to South Australia and Victoria. Strike is in discussions with the Mid West Port Authority with regarding to securing its berth and Port Access Agreement for East Coast and International deliveries.

Strike Energy Managing Director & CEO Stuart Nicholls, said:
“Development progress continues at Project Haber with potential customer support being overwhelming. This is a function of the strategic location of this urea supply in Australia and the events of the previous 16 months highlighting the risks of relying on international supply chains for critical commodities required by our domestic economy.

“I am immensely proud that we are doing everything we can to incorporate as much green energy from our own portfolio and the region into the manufacturing process. These pursuits may see some of the first green fertilizer produced in the world right here in WA, which will cement a valuable partnership between our low-cost gas resources and Australia’s transition to a low carbon economy.”

This announcement is authorized for release by the Managing Director and Chief Executive Officer in accordance with the Company’s Continuous Disclosure Policy.


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