Stage one commercialisation of Leigh Creek Energy’s urea project underway with power generator testing

Stage one commercialisation of Leigh Creek Energy’s (ASX: LCK) namesake urea project in South Australia is underway, with factory acceptance testing starting on the Siemens power generators.

The company has acquired four new Siemens’ syngas-fired engines from Drivetrain Australia, which will have a combined 4.76MW capacity.

Leigh Creek selected the generators based on their ability to operate efficiently on syngas from the project.

Siemens is now completing the factory acceptance tests on the new generators, which is the last step required before they are transported to the Leigh Creek project site.

“The power generators have been fabricated as per the schedule and we are excited to be preparing the site in readiness for their arrival and installation,” Leigh Creek managing director Phil Staveley said.

“This is a key milestone for Leigh Creek urea project’s development to build the only fully integrated urea production facility in Australia – positioning us to be the lowest cost sovereign supplier of this critical product for our agricultural sector.”

Stage one commercialisation

Stage one commercialisation of the Leigh Creek urea project involves acquisition and installation of the power generators, along with obtaining 3D seismic over the project permits.

It will also include drilling up to five new syngas producing wells followed by installation and construction of requisite infrastructure.

Drivetrain will install the power generators to begin syngas production and develop the field for Australia’s first integrated urea production facility.

Carbon neutral status

Stage one commercialisation follows Leigh Creek securing carbon neutral status for the project earlier this month.

Achieving carbon neutral status comes eight years ahead of schedule and makes the project the world’s first large-scale fertiliser project of its kind to gain this title.

Mr Staveley said securing carbon neutral status was made possible through the company’s participation in carbon offset projects.

Leigh Creek’s strategy is to provide a critical domestic source of urea from Australia’s only fully integrated facility based on “innovative technology” from syngas production, ammonia and urea synthesis, on-site gas fired power and renewable energy, along with carbon capture and storage at the site.