Premier announces $83m investment

The State Government will spend more than $83 million to secure land and upgrade vital water and road infrastructure to ensure Perdaman Chemicals & Fertilisers’ $3.5 billion Collie urea plant goes ahead.

Speaking in Collie today, Premier Colin Barnett said the funding over the next four years would enable Perdaman establish a world-scale facility that would transform coal into urea, using proven coal gasification technology.

``This project will have massive significance for Western Australia and the South West, introducing a new industry, new employment and business opportunities and boosting exports,’’ the Premier said.

``As well as creating 1,500 construction and 200 operating jobs, the project’s demands for coal, supplies and services including road rail and shipping are expected to generate another 650 jobs, most of them in the Collie and Bunbury areas.

``At full production, the plant will produce two million tonnes of urea each year for domestic and international fertiliser markets.

``Perdaman’s plant will be established at a new 250ha Shotts Industrial Park seven kilometres from Collie, which will also have the capacity to accommodate up to four other heavy industry operations.’’

Gases and engineering company BOC Ltd earlier this month secured a $1 billion long-term contract to supply industrial gas to the Collie urea plant.

Under the contract BOC, which is a member of The Linde Group, will supply nitrogen and oxygen over 20 years with an additional five-year option to the Perdaman project.

The proposed urea plant will utilise clean energy technology to enrich the world’s crops with urea by transforming sub-bituminous coal into the product using innovative and clean coal gasification technology.

BOC South Pacific Managing Director, Colin Isaac, said the contract to supply nitrogen and oxygen to Perdaman Chemicals and Fertilisers (PCF) was a significant milestone for the company, underpinning its commitment to clean and innovative technology solutions.