Major investment: CSBP reveals plans to double ammonia production to shore up local supply and slash emissions

WA’s biggest fertiliser manufacturer CSBP has unveiled a multi-million dollar project to double production at its ammonia manufacturing facility in Kwinana — a move hoped to help shore up domestic supply and slash emissions. The Wesfarmers-owned CSBP has proposed doubling its existing site to locally manufacture an additional 300,000 tonnes of ammonia — which plays a vital role as an ingredient in nitrogen fertilisers — through its Ammonia Expansion Project. The company has touted the plan as a way to reduce its exposure to price and supply volatility, and says once complete the project would be one of the most emissions-friendly ammonia plants of a similar scale around the world. CSBP is also exploring several carbon capture utilisation and storage solutions for the project’s CO2 emissions, with hope they will be “sufficiently mature” to enable its organisational goal of net zero emissions by 2050. WesCEF managing director Ian Hansen said the project aligned with that goal. “We understand we need to balance community and customer expectations for a net zero world with the requirement to supply essential products for agriculture, construction, energy and mining industries,” he said. “The project’s electrolyser will be an investment in learning so we can gain valuable operational experience and knowledge to enable us to transition to large-scale green hydrogen and ammonia production when it becomes commercially viable.” The project’s Greenhouse Gas Management Plan is before the Environmental Protection Authority for environmental approval, with a final investment decision expected early next year. Construction could start as early as late next year, with the first ammonia production by 2028. CSBP uses 525,000 tonnes of ammonia at Kwinana each year, about half of which is manufactured locally while the rest is imported. The ammonia is used as a feedstock in chemical and fertiliser production and sold to third parties, primarily for nickel processing. Once complete, the project will enable CSBP to produce 562,500 tonnes of ammonia locally. The proposed development spans 27.5ha and requires the clearing of 1ha of native vegetation inside the 138ha CSBP operates. The plant includes a pilot 10MW electrolyzer powered by a combination of renewable energy and electricity generated from excess heat captured from various on-site production processes. Mr Hansen said the project would reap the commercial, operational and logistical benefits of sharing an established site with its existing ammonia plant, as well as the process and safety benefits that extend from a mature, reliable supply chain. “We are also able to utilise the expertise of the CSBP team, which has been producing ammonia for nearly 60 years,” he said. It would use natural gas sourced from the Dampier to Bunbury Natural Gas Pipeline, integrated with hydrogen production. EPA consultation closed on February 14.