Wesfarmers' CSBP Seeks Environmental Clearance for Doubling Ammonia Manufacturing in Kwinana, WA

Australia: WESFARMERS' chemical and fertiliser arm, CSBP, has applied for environmental clearance to construct an additional Ammonia-manufacturing plant in Kwinana, Western Australia, to increase its production capacity. Currently, CSBP is a significant player in the Australian market, and the proposed expansion aims to double its production at the current facility. It will also reduce the company's dependence on Ammonia imports, provide better control over greenhouse gas-emissions and an additional local production of 300,000 tonnes of fertiliser every year, lowering their exposure to price and supply volatility.

The business presently utilizes nearly 525,000t of Ammonia annually, equally divided between its self-produced Ammonia and imported Ammonia. The Greenhouse Gas Management Plan of the project is currently with the WA Environmental Protection Authority following the completion of a front-end engineering design study. Provided that all necessary approvals are obtained, a Final Investment decision is anticipated in 2024. Construction may begin in the latter half of 2024, and the initial Ammonia production could be expected by 2028.

The upcoming plant is set to feature a pioneer 10MW electrolyser and the provision to embrace sustainable technology as it evolves. This electrolyser will be fuelled by a mix of renewable energy and surplus heat harvested from the plant's own production systems. Along with energy-saving improvements to machinery, controls, and mechanization, the plant will discharge a lesser amount of CO₂ emissions when compared to other same-sized Ammonia plants globally.

WesCEF has announced that the Ammonia Expansion Project is in line with their target of achieving net zero by 2050, and it will enhance their track record of reducing emissions. The project offers several advantages such as leveraging an established site with the current Ammonia plant, resulting in commercial, operational, and logistical benefits. Additionally, a mature and reliable supply chain brings process and safety benefits to the project as well.