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Strike Energy (ASX:STX) - Managing Director & CEO, Stuart Nicholls - The Market Herald
Managing Director & CEO, Stuart Nicholls
Source: Strike Energy
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  • Strike Energy (STX) has begun pre-FEED work at Project Haber, a planned urea production facility in Geraldton, WA
  • Technip Energies, which completed the feasibility studies for Project Haber, is working to refine the current US$1.74 billion (around A$2.27 billion) capital cost estimate for the plant
  • Strike has received "overwhelming" support from national and international buyers, while Green hydrogen developers and future suppliers in the region have also approached Strike to sell green hydrogen and ammonia products
  • According to the company, once built, Haber will be the largest hydrogen and ammonia consuming facility in Australia
  • Shares last traded 7.6 per cent higher at 35.5 cents each

Strike Energy (STX) has begun Pre-FEED work at Project Haber, a planned urea production facility in Geraldton, WA. 

In January this year, the explorer launched plans for the new ammonia and urea manufacturing facility in WA's Perth Basin.

Now, Technip Energies, which completed the feasibility studies on Project Haber, have commenced the pre-FEED scope of work to further refine the current US$1.74 billion (around A$2.27 billion) capital cost estimate for the plant.

Technip Energies will take the chemical process engineering works into account to maximise the amount of inherent carbon consumed from the natural gas through the manufacturing process.

There has already been interest for the product from both Australian and
International buyers with expressions for long-term offtakes varying between three to 10 years, already exceeding Project Haber’s proposed 1.4 million tonnes per annum supply.

More than 12 buyers have participated in the process to date, with further expressions of interest received.

Strike Energy Managing Director and CEO Stuart Nicholls said the potential customer support has been overwhelming

Further, Strike has engaged JBS&G Strategen to start the environmental approvals and planning process, which will be a key pre-FID long lead activity.

There is a focus on keeping as much green energy from Strike's portfolio and the region into the manufacturing process.

Consequently, Technip Energies and technology provider, Haldor Topsoe, are working on ways to maximise the amount of green hydrogen inputs into the urea manufacturing process.

Strike plans to provide two per cent of the hydrogen input through its own ten-megawatt electrolysis unit, to be powered by the company's potential geothermal resources in the Perth Basin.

Other green hydrogen developers and future suppliers in the region have approached Strike to sell green hydrogen and ammonia products to the project.

Strike states that, once built, Haber will be the largest hydrogen and ammonia consuming facility in Australia.

In terms of logistics, Strike has partnered with GHD, which have completed transportation and logistics studies to keep costs down.

Shipping advantages when compared to the main international competitors’ range between $5-25 per tonne for deliveries from Geraldton to South Australia and Victoria.

Further discussions with the Mid West Port Authority are underway to secure
berth and Port Access Agreement for East Coast and International deliveries.

Shares last traded 7.6 per cent higher at 35.5 cents each.

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