Strike Vitality’s $3b mission to offer crucial farming fertiliser shelved for gasoline vitality plant

A Western Australian gasoline company has shelved its plans to form a $3 billion fertiliser plant which could perchance perchance maintain offered three quarters of Australian meals growers’ urea wants and must in its build take care of producing electricity.

Strike Vitality has gasoline wells and exploration interests within the northern Perth Basin and brought its maiden pure gasoline mission, Walyering, on-line in September 2023.

Alternatively it changed into its plans to create 1.4 million tonnes of urea each year from trim hydrogen and pure gasoline that attracted the hobby of farmers.

They are involved by a native offer of nitrogen which is crucial for slice enhance and model, however is for the time being entirely imported.

Farmers hoped Strike’s Project Haber, proposed to be positioned west of Three Springs, would offer a native and extra more cost-effective source of urea for their plant life.

Computer graphics of deliberate Mid West Low Carbon Manufacturing Precinct

Strike Vitality had plans for gasoline fields, urea manufacturing, and renewable vitality era.(Supplied: Strike Vitality)

Strike Vitality’s managing director Stuart Nicholls said while it still noticed merit in domestic urea manufacturing,  the company would in its build transfer to rising a peaking vitality residing. 

“One of the most appraisal of our present gasoline sources at South Erregulla changed into unsuccessful, so the volume of gasoline that Strike has, in an effort to salvage there, reduced in size quite dramatically, quite fast,” he said.

“Our ambitions to form a 1.4 million-tonne urea facility are ostensibly delayed for quite a while and must be topic entirely to being in a residing to uncover additional gasoline sources and elevate those to market.”

Effort redirected to peaking vitality plant

Strike bought farmland west of Three Springs for the urea plant and must now form the gasoline-powered peaking vitality plant at this bid.

The vitality plant proposes offer to the northern slay of the South West Interconnected Arrangement (SWIS).

Mr Nicholls said the company had struck a $153 million finance deal with Macquarie Bank and changed into assured it had the reserves of gasoline to toughen the vitality residing’s modelled consumption.

“We gape this vitality residing as being an integral piece to the transition to low carbon vitality across WA,” he said.

“It’s some distance a peaking gasoline vitality residing which is designed to toughen and firm renewable vitality so that you invent not suffer from  intermittency or lack of reliability that the weather can throw up.

“With the appearance of an elevated quantity of flexible, adaptable, peaking gasoline vitality [then] extra wind, extra characterize voltaic, and extra batteries can come into the market.”

Headshot of man in enterprise swimsuit and tie

Strike Vitality’s Stuart Nicholls says Project Haber is now topic to being in a residing to uncover additional gasoline sources.(Supplied: Strike Vitality)

Strike has submitted an application to the Australian Electricity Market Operator (AEMO) for the award of capability credit and network salvage entry to.

If granted, Mr Nicholls said the 85-megawatt peaking vitality residing could perchance perchance be operational by October 2026.

In 2022 Strike Vitality changed into granted predominant mission situation by the federal government for Project Haber, a designate designed to streamline approvals, mission toughen, and coordination.

On Thursday, Strike started drilling its Erregulla deep well, a 50-50 joint mission with Hancock Prospecting.

Mr Nicholls said outcomes from this maintain been anticipated within 30 to 40 days.

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