Perdaman starts work on $6 billion urea plant in Western Australia

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A concept image of the future Perdaman urea plant. Image credit: Perdaman

Industrial chemical producer Perdaman Chemicals and Fertilisers has started building its $6 billion urea facility in the Pilbara region of Western Australia. 

Perdaman, a Western Australia-based multinational company with offices in New Delhi and Hyderabad, India, revealed the plant will create 2,500 jobs during construction and 200 jobs when operational. 

When completed, it will be the largest urea plant in Australia and one of the largest in the world, Global Australia, an initiative led by Australian Trade and Investment Commission, claimed in a news release. 

The Perdaman facility will convert natural gas from Woodside’s Scarborough Gas Project into urea, a form of fertiliser used in food production, to create 2.3 million tonnes of it yearly.

“We are excited to be constructing Australia’s largest-ever downstream manufacturing project, which represents a significant investment in Australia’s manufacturing sector,” says Vikas Rambal, chairman and CEO of Perdaman.  

Rambal added that by providing Australia with a secure and dependable source of high-quality urea, this cutting-edge plant will benefit the country’s farmers and food manufacturers.

According to Perdaman, the urea plant is made to reduce industrial emissions as well as the carbon footprint associated with the manufacturing of fertilisers.

By 2050, the chemical producer said it intends to have achieved net carbon zero at the facility by implementing global best practices to reduce greenhouse gas emissions. 

The Australian Government provided significant funding for Perdaman’s urea plant through the Northern Australia Infrastructure Facility (NAIF).

The project received $159 million from the Pilbara Ports Authority for a new multi-user wharf and facilities at the Port of Dampier.

A $96 million investment went to the Water Corporation to expand the Burrup seawater supply and brine disposal scheme that will connect to the Perdaman urea plant once built.

Furthermore, Export Finance Australia (EFA) will provide a $269 million loan to the project, alongside NAIF and 12 other commercial lenders. 

EFA’s loan supports Perdaman’s plans to export fertiliser to Australia’s trading partners, the company revealed.