- The project was initially commenced in 2008 and after a successful engineering start-up, was put on hold as the effects of the global financial crisis rippled through the economy, and the then expanding interest in the agri-sector began to wane. The project was recommenced in 2012 but then needed three years to secure a Coal Supply Agreement instead of the intended three months.
- The project has two components, the core urea fertiliser component which will be the largest section, followed by the production of AdBlue, an environmental diesel exhaust additive that is made from pure urea. The AdBlue product is regulated for compulsory use in all new on road diesel vehicles and will provide an additional but unrelated revenue stream which can become substantial and impact EPS significantly.
- The company is entering an exclusive take or pay commercial contract to become a wholesale supplier to the largest distributor of AdBlue, an international diesel engine manufacturer.
- The core urea project has an excellent product demand/supply ratio, one of the lowest operating costs in the world, a global and local logistics cost advantage and a long term energy supply agreement, i.e. 40 years.
- Production will be 520,000 tpa. Australian agriculture consumes circa 1,900,000 tpa and current total Australian production is only 285,000 tpa, from a single plant in the north east of Australia, near the city of Brisbane.
- The Latrobe project is located in the south east of Australia, amongst the highest density urea consumption region in Australia, whilst close to major east coast transport routes for movement of AdBlue.
- The immediate market radius of 400kms from the plant site has a urea consumption of approx. 1,000,000 tpa of agricultural urea.
- The project will use a low cost, highly chemically suitable coal with only 1.6% ash on a dry basis, as its feedstock. The coal is converted to a gaseous state for its use in the Urea manufacturing.
- Shell will provide the coal gasification technology to the project with the requisite process guarantees.
- The project will have a net zero emissions footprint.
- The project will move to a new site near Bacchus Marsh in Victoria, Australia from its prior
designated location in the Latrobe Valley, Victoria. This new location will put the project 200kms closer to 80% of its target market area, thus advancing the project logistics advantage