INCITEC Pivot Limited has signed an exclusive offtake agreement which will see Perdaman Chemicals and Fertilisers provide up to 2.3 million tonnes (Mt) of granular urea per year to Incitec Fertilizers over 2o years.
The partnership covers offtake from Perdaman’s plant now under construction at Karratha in Western Australia which will use natural gas to produce urea fertiliser, a major input in Australian agriculture.
Urea supply is expected to be available from mid-2027 when construction is completed.
“This investment in manufacturing will support highly skilled jobs and deliver security of supply for Australian farmers,” IPL managing director and chief executive officer Jeanne Johns said.
“Our partnership with Perdaman provides IPF with significant volumes of competitive, long-term, domestic urea supply for its Australian customers and the ability to expand sales into growing global markets.”
Ms Johns said global market conditions and security of supply were growing challenges growers and the
agriculture sector in Australia and globally.
“IPF is very excited to be partnering in a project with this level of significance to Australian agriculture.”
IPF’s strategy is to deliver products and services that provide farmers with more sustainable plant nutrition solutions, manage input costs, increase productivity, and crop yields and improve the health of their most valuable asset, their soil.
“IPL is committed to supporting domestic manufacturing, and as Australia’s largest domestic manufacturer of plant-nutrition products, aims to play an important role in the agriculture industry’s target of being a $100 billion industry by 2030.”
The project has been awarded Major Project Status by both the Australian and WA governments.
It is expected to provide $8.5 billion in public benefit to Northern Australia and generate around 2,000 construction jobs and 200 operational and indirect jobs once production begins.
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