CSBP considers $500m+ ammonia project

An industry participation plan has been approved for a potential $500 million-plus expansion of CSBP’s ammonia production in Kwinana, with Technip undertaking Feed work.

Wesfarmers-owned CSBP is understood to be in the early stages of assessing the development, with the exact scope still under discussion.

But it has prepared a brief industry participation plan, recently approved by the federal government, and published four work packages online to take expressions of interest.

Those packages include for the plant’s reactors and two small steam turbines.

The project is in front end engineering design phase, led by Technip Australia, the documents show.

The price tag is not finalised, but the documents suggest it will be at least $500 million, and it is expected to be complete by September 2024.

CSBP produces about 225,000 tonnes of ammonia annually, the company has said.

“Subject to material conditions precedent and final approvals, CSBP is exploring the expansion of its existing ammonia production facilities through the development of an adjoining ammonia plant at its Kwinana site,” the documents say.

"The project duplicates CSBPs existing ammonia plant at the Kwinana site. 

“The project will consist of steam methane reforming, synthesis gas production and ammonia production units, with a focus on compatibility with emerging technologies.” 

CSBP’s Kwinana plant can export ammonia through the nearby Kwinana Bulk Jetty, with the chemical turned to liquid under pressure at -34 degrees celsius.

Other ammonia production projects have been touted in recent months as a reasonably cheap method to ship hydrogen.

Those include a potential 1 million tonne per annum facility in Geraldton, with BP undertaking feasibility work on the project; and the very large Asian Renewable Energy Hub in the Pilbara, which recently hit a hurdle with federal environmental approvals.

Yara Pilbara received a $43 million pledge from the Australian Renewable Energy Agency for a 10 megawatt green ammonia demonstration plant, at its Burrup facility, in May.