Oil and Gas News

Strike launches carbon manufacturing precinct

Strike Energy

Strike has signed a binding contract for the acquisition of 3500 hectares of freehold farming land in the Shire of Three Springs in the mid-west of Western Australia.

The land holds substantial strategic value for Strike in its pursuit of reducing the cost and carbon intensity of Project Haber’s nitrogen-based fertilisers.

The land possesses several natural resources and assets, including the South Erregulla Kingia and Wagina low impurity gas fields. The land will now be referred to as the Mid-West Low Carbon Manufacturing Precinct and is planned so other proponents may join Strike in the development and expansion of the precinct.

The precinct is in an ideal geographic setting and possesses strong natural advantages in both wind and solar power generation. Strike’s desktop analysis shows that the precinct could host up to 100 MW of wind resources with an estimated capacity factor between 40-50 per cent.

As part of the launch, Project Haber fertiliser plant will be relocated to the precinct. Following this, Strike will assess potential renewables developers and other low carbon manufacturing collaborators to join Strike with developments at the precinct.

Relocation of Project Haber to the precinct couples with the co-located renewable energy generation opportunities has the potential to materially benefit the project’s economics and carbon footprint.

This includes capital cost reduction of approximately $85 million with the removal of requirement for 105 km Haber-Geraldton gas pipeline, more than 1500 hectares of carbon farming and offset opportunities and streamlining environmental approvals and lowering the risk of land access arrangements for the integrated development.

At this stage, Strike doesn’t intend to be the owner and operator of the renewable energy developments or carbon farm at the precinct and will look to offtake arrangements for the available power and/or potential carbon credits from proposed developers.

To read Strike’s update on the precinct, click here.

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