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Construction of Perdaman Chemicals & Fertilisers’ urea plant begins

Published by , Deputy Editor
World Fertilizer,

A groundbreaking ceremony in Western Australia’s Pilbara has marked the start of construction of Perdaman Chemicals & Fertilisers’ (PCF) urea plant which will provide Incitec Pivot Fertilisers (IPF) with a secure, long term supply of Australian urea.

The 20-year offtake partnership with PCF secures up to 2.3 million t of urea per year for IPF and its customers. IPF representatives joined Perdaman leadership in Karratha for a groundbreaking ceremony to celebrate the beginning of construction on the project.

Incitec Pivot Limited (IPL) Managing Director & CEO Jeanne Johns said the announcement by Perdaman Chairman & CEO Vikas Rambal is testament to his longstanding vision and determination to support Australian agriculture into the future. The world scale manufacturing plant will use Western Australian natural gas to produce urea fertilizer, an essential input for Australian agriculture.

“I want to congratulate Vikas and his Perdaman team for making this opportunity a reality and bringing together Australian and international expertise. This investment in manufacturing will support highly skilled jobs and deliver security of supply for Australian farmers.”

“Our partnership with Perdaman provides IPF with significant volumes of competitive, long-term, domestic urea supply for its Australian customers and the ability to expand sales into growing global markets,” Ms Johns said.

“Global market conditions and security of supply are growing challenges for farmers and the agriculture sector in Australia and globally.”

“IPF is very excited to be partnering in a project with this level of significance to Australian agriculture.”

Urea supply is expected to be available from mid-2027 when construction is completed.

IPF’s strategy is to deliver market leading products and services that provide farmers with more sustainable plant nutrition solutions, manage input costs, increase productivity, and crop yields and improve the health of their most valuable asset, their soil.

“This is all about IPF executing on its strategy and enables IPF to grow the long-term strength and scale of the business. It is also another step towards creating two great businesses – Incitec Pivot Fertilisers and Dyno Nobel.”

“IPL is committed to supporting domestic manufacturing, and as Australia’s largest domestic manufacturer of plant nutrition products, aims to play an important role in the agriculture industry’s target of being a $100 billion industry by 2030,” Ms Johns said.

The project has been awarded Major Project Status by both the Australian and Western Australian governments. It is expected to provide $8.5 billion in public benefit to Northern Australia and generate around 2000 construction jobs and 200 operational and indirect jobs once production begins.

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Fertilizer project news Urea news