Burrup Peninsula Ammonia and Urea Fertiliser Plant, Australia

This is an ammonia/urea fertiliser plant built on the Burrup peninsula in Western Australia, near Karratha. This site was chosen in preference to another location near Darwin, where gas would have been drawn from the Timor Sea gas fields.

The cost of the plant is estimated to be $500 million. Construction began in early 2000, and commercial production will start by 2003. The plant will produce approximately 760,000t/yr of granular urea and 190,000t/yr of excess saleable ammonia. The project is expected to yield revenues of approximately $122 million in its first year of production. Much of the production will be sold to the Australian home market, although the firm also hopes to export.

SNAMPROGETTI DESIGN, HALDER TOPSOE TECHNOLOGY

The site is close to the nearest port built by the Dampier Port Authority and 20 miles from the nearest airport in Karratha. Snamprogetti is designing the ammonia production plant using Halder Topsoe technology and the urea plant using its own technology. The Haldor Topsoe technology is used by 60% of ammonia plants being built around the world. The urea granulation is developed using the Hydro Agri process. The plant is similar to the one being built by Snamprogetti in Venezuela.

As well as the production plant, the site will have storage facilities, independent power production, ancillary equipment, such as fire and safety systems, and a variety of service facilities. There will be a conveyor and pipeline to transport urea and ammonia to the Dampier wharf.

PLENTIFUL NATURAL-GAS FEEDSTOCK

The Burrup site is close to extensive gas fields, which can help to provide feedstock. The relatively low price of the natural gas was an important reason for the site's selection. Since natural gas is so high in hydrogen content it is particularly suitable for ammonia production.

The ammonia is produced by mixing natural gas and water with a catalyst to form oxides and hydrogen. These react with air to produce nitrogen, hydrogen and carbon monoxide. The nitrogen and hydrogen is combined to form ammonia (NH₃). The carbon monoxide is converted to dioxide and used in the urea plant.

Ammonia and carbon dioxide are reacted to form ammonium carbamate. The urea is formed by dehydrating the carbamate. The urea has impurities removed and is then granulated by being sprayed onto urea granules in a fluidised bed.

PLANT SPONSORS

The plant is sponsored by the Plenty River Corporation (based in Melbourne, Victoria in Australia) as well as Chambal Fertislers (based in New Delhi, India). After completion, the plant is expected to employ 105 people as well as a further 15 at the head office in Perth, Western Australia.

The Australian government is eager to help the project, as it is in a deprived area. It has awarded it Major Projects Facilitation (MPF) status. This makes it easier to obtain both state and Commonwealth approvals. Invest Australia, a quango, helped promote the investment. The government is keen not only to promote investment in a rundown part of rural Australia, but also to use import substitution of fertilisers to promote Australia's balance of payments.