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Leigh Creek achieves carbon neutral status for large-scale Australian urea project

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By Lorna Nicholas - 
Leigh Creek Energy ASX LCK Urea Project fertiliser carbon neutral status

Leigh Creek has achieved carbon neutral status for its urea project eight years earlier than originally planned.

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Leigh Creek Energy (ASX: LCK) has achieved carbon neutral status for its Leigh Creek urea project in South Australia – making it the world’s first large-scale fertiliser project to achieve this title.

The company previously announced a target of becoming carbon neutral by 2030.

Commenting on the achievement, Leigh Creek managing director Phil Staveley said it was made possible through the company’s active participation in carbon offset projects.

He said the company had collaborated with Energy Link to identify and acquire carbon offsets through accredited international carbon farming projects.

“Our commitment to reaching carbon neutrality eight years earlier than originally planned not only aligns with the United Nations Global Compact principles, the world’s largest corporate sustainability initiative, but also promotes our values and purpose as an organisation.”

“Our carbon neutral status leads the urea industry, provides a strong alignment with our ESG principles, adds long-term value for our shareholders and is a significant drawcard for potential partners throughout the life of the project,” Mr Staveley added.

Leigh Creek’s carbon neutral status will be open to government accreditation and audit, with results also to be made available to the public.

Leigh Creek urea project

The company plans to provide a domestic urea source Australia-wide from its Leigh Creek project, which will be the country’s only fully integrated urea production facility.

This operation will be based on “innovative technology” from ISG syngas production, ammonia and urea synthesis, on-site gas fired power and renewable energy, along with carbon capture and storage at the site.

About 1 million tonnes a year of urea will be produced and can be increased to 2Mtpa at a later date.

Fertiliser critical to Australian agriculture

Australia currently sources about 80% of its urea from China, with the product primarily used in fertiliser manufacturing.

With its urea output, the company plans to provide “additional security” for Australia with a product that is critical to Australian agriculture.

It has the advantage of avoiding higher risks, costs and carbon generation associated with transport, imports, exchange rates and commodity prices.

Granular urea is the world’s most common fertiliser.