Strike Energy awarded grant for

urea project
Dec. 15, 2021
Strike Energy Ltd., Perth, has been awarded a grant of $2 million
(Aus.) by the Australian government for its proposed Project Haber
urea manufacturing development in the North Perth basin of Western
Australia.
Rick Wilkinson

Strike Energy Ltd., Perth, has been awarded a grant of $2 million (Aus.) by the
Australian government for its proposed Project Haber urea manufacturing
development in the North Perth basin of Western Australia.

The grant has been awarded as part of the federal government’s Supply Chain
Resilience Initiative. Project Haber has also received Lead Agency Status from the
Western Australian state government.

The project is expected to be further supported by the WA government’s

announcement of Hydrogen Hub status for the state’s Midwest that could see public
investment of around $117 million (Aus.) in the region, matched by a similar amount
from the federal government.

The significance of the project has been recognized at a time of global shortage of
urea where, due to the northern hemisphere energy crisis, gas feedstock has been
diverted from industrial to primary uses like power and heating. Urea exporting
nations have imposed restrictions on exports pushing the price of urea upwards of
US$1,000/tonne on the spot market.

Australia is facing a zero domestic urea production by end 2022 with Incitec Pivot
Ltd. recently announcing the close of its Gibson Island production plant in Brisbane.

Project Haber is contingent on certain outcomes, including the proving up of

sufficient gas reserves at South Erregulla prospect in the North Perth basin as well as
satisfactory results of front-end engineering studies, access to finance, securing
binding urea offtake agreements and obtaining all necessary permits, approvals, and
authorizations.

Strike’s immediate program calls for drilling the high-impact well South Erregulla-1
where the company has 100% interest. Spudding is expected before yearend.

The objective of this and any subsequent appraisal wells is to delineate around 350
petajoules of gas resource to secure sufficient gas requirements for Project Haber
from the company’s 100%-owned permits. This amount of feedstock would enable
Strike to progress the banking and equity processes with enough gas to cover the
proposed tenor of any debt facilities.

Pre-FEED studies for the project were completed earlier this year. Strike is
progressing early FEED work focused primarily on environmental approvals and
consolidating the basis of design.

The company also has begun the FEED/engineering, procurement, and construction
(FEED/EPC) tender process intending to award the FEED scope upon drilling
success at South Erregulla-1.

When constructed, Project Haber would be one of the country’s largest hydrogen-
consuming plants via its urea manufacturing process and hence has potential to play
a strategic role in the local hydrogen economy, the company said.