Strike Energy (ASX:STX) - Managing Director & CEO, Stuart Nicholls
Managing Director & CEO, Stuart Nicholls
Source: Strike Energy
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  • Strike Energy (STX) enters MOUs with ATCO and Infinite Blue Energy (IBE) for potential green hydrogen supply for Project Haber in Geraldton, WA
  • STX says, once operational, Haber will use green hydrogen and lower carbon natural gas to produce some of the lowest carbon urea fertiliser on the market
  • The off-take deals will also see the parties agree on key infrastructure priorities for the Mid-West and lobby the WA Government for their development
  • Once Haber exceeds 40 per cent green hydrogen in its feedstock mix, Strike will look to import carbon dioxide from industry, acting as a sink, for its operations
  • Shares closed at 29 cents on September 14

Strike Energy (STX) is in collaborations with ATCO and Infinite Blue Energy (IBE) for the proposed supply of green hydrogen to Project Haber in Western Australia.

Based in Geraldton, the 1.4-million-tonne-per-annum urea development is touted by STX to become the country’s largest industrial hydrogen consumer and potential carbon sink.

Once operational, Haber itself will produce 1825 tonnes per annum (tpa) of green hydrogen, or around two per cent of the plant’s total hydrogen feedstock.

These supplies, combined with Strike’s lower carbon natural have from the Greater Erregulla region, will reportedly be used to produce some of the lowest carbon urea fertiliser available in the market.

Planning forward, the company said it aimed to bolster its green hydrogen feedstock with sources from other developers in the Mid-West region.

To this end it has entered into separate non-binding memorandums of understanding (MOUs) with ATCO and Infinite Blue Energy for infrastructure and green hydrogen offtake.

These agreements are designed to align the parties on key infrastructure priorities for the region and petition WA’s state government for their development.

Further, STX said once Haber exceeded 40 per cent of green hydrogen in its feedstock mix, the plant would need to import carbon dioxide to continue making urea fertiliser.

This, it said, created an existing opportunity to import around 500,000tpa of carbon dioxide from neighbouring heavy industry — with Haber acting as a sink to utilise third party industrial emissions.

Strike CEO and Managing Director Stuart Nicholls said the MOUs with two key green hydrogen developers in the Mid-West were a great step in accelerating WA’s hydrogen economy.

“Incorporating green hydrogen in Project Haber’s urea production process will enable Strike to produce some of the lowest carbon urea possible and potentially create one of Australia’s largest carbon sinks, moving strike into carbon negative territory,” he said.

Project Haber is forecast to produce and consume 141,000tpa of hydrogen, providing considerable opportunity for long term collaboration and growth with future WA green hydrogen suppliers.

Shares closed at 29 cents on September 14, 2021.

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