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Urea plant

The coal will be gasified to produce a synthesis gas...

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The project will be subject to the normal state and federal environmental approval...

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Latrobe Fertilisers Limited

Latrobe Fertilisers is currently in the development phase of a $500 million urea fertiliser plant in the Latrobe Valley of Victoria. The plant will use proven technology to produce 520,000 tonnes of urea fertiliser per annum, providing a greater security of supply to Australia in a world of increasingly competing demand.

This facility will use Victoria’s significant brown coal (lignite) reserves as feedstock as opposed to natural gas, which is the primary feedstock for other urea plants around the world.

When fully operational the plant will produce 3200 tonnes of urea per day replacing approximately $300 million of current urea imports and generate approximately $150 million of exports per annum.

The plant is designed to capture and store carbon (and other by-products) resulting from the process.

Victoria’s Latrobe Valley has 53 billion tonnes of economic brown coal.

The assured supply of brown coal provides a level of certainty and ongoing viability not available to a gas fed plant.

Urea Plant


The coal will be gasified to produce a synthesis gas. The production of urea first requires the production of ammonia (NH3) and the nitrogen to do this comes from the ASU facility at the front end of the flow sheet with the hydrogen coming from the shift reaction (CO + H2O -> H2 + CO2).

To convert the ammonia to urea, an infusion of CO2 is required which comes from the waste stream of the hydrogen production shown above.

The plant has been designed to minimise the re-engineering/design through the use of off–the-shelf designs that are already in production. This will reduce costs and risks in achieving the optimum output.

The first stage is planned to produce 520,000 tonnes per annum and is expected to cost $550 million.


The project will be subject to the normal state and federal environmental approval process. The plant will be located on an approved industrial site adjacent to a power station and mine which has several of the environmental approvals already in place.

Latrobe Fertilisers is committed to build the first near to zero emissions urea plant in Australia.

The project is engineered to capture its excess CO2 not used in the urea production (see project flow sheet) and ultimately direct this to a common user geosequestration facility.  The establishment of such a facility is supported by the Victorian Government who are currently one of the sponsors of  a trial CO2 injection project in Victoria’s Otway Basin.

Water will be captured from the brown coal and supplemented with local supply. Water will be recycled at every opportunity.

The limited inert residue from the gasifier will be trucked to land fill or road construction projects.

Community consultation
A program of community consultation will be initiated together with community projects.