THE RENAISSANCE of the Australian urea manufacturing industry continues, with the announcement of another project to make the nitrogen fertiliser in Western Australia.
The federal government has committed $255 million, under the Northern Australian Infrastructure Fund, to the Perdaman project at Karratha.
Between all the developments flagged the government now believes Australia can go close to self-sufficiency in urea, a far cry from the situation when Incitec Pivot announced it was shutting its Gibson Island facility, the last remaining urea manufacturing plant in the country.
The ambitious Perdaman project eventually wants to produce two million tonnes of urea per year using Australian natural gas to make the fertiliser.
Agriculture minister David Littleproud said the project would help protect Australian farmers from the volatility occurring in international supply chains at present.
"The NAIF's investment will provide farmers' access to locally manufactured fertiliser, securing our agricultural production and boosting our exports."
The Perdaman Urea Plant is considered transformational for Western Australia, having been awarded Major Project Status by both the Australian and Western Australian governments.
The news won support from farmer groups.
WAFarmers grain council president Mic Fels said the investment into local capacity gave grain growers confidence in fertiliser security into the future in Western Australia, with recent global uncertainty highlighting the need both for increased market diversity and input self-sufficiency.
"Fertiliser accounts for up to twenty percent of all grain production costs, with nitrogen usage and farm efficiency is driving ongoing productivity gains in WA's grains industry," Mr Fels said.
"In just the last 12 months, our dependence on imported urea has seen a tripling of the local price, which is now biting hard on our farm budgets for the coming season.
"These massive public and private investments into not only nitrogen but also potash production in Western Australia, are welcome indicators that our rocketing grains industry is now being noticed and supported in our core goals of ever-increasing productivity with sustainability."
Other new urea manufacturing developments are being slated for Geraldton, also in WA, and also at Leigh Creek, in SA.
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