A $4.6 billion plant will make ammonia ‘the fuel of the future’ says the Australian Government
Newly-elected Australian Prime Minister Tony Abbott has signed a major deal to build the world’s largest ammonia plant, which will produce 25 percent of the world’s ammonia as a fuel. The project was announced at the Royal Economic Society in London during a speech to the audience by Australian Prime Minister Tony Abbott.
The project will produce 25 per cent of all the world’s ammonia, with the potential to produce up to 50 per cent if the proposed plant is built to the world’s highest standards.
The plant will be built in Port Kembla, Victoria and will employ 3,000 people.
The project will reduce Australia’s dependence on Middle Eastern and Asian oil imports, and potentially free up oil resources.
An estimated 8 million tonnes of ammonia per year may be produced by the plant.
The estimated cost of the project is $4.6 billion, which includes the costs of land, construction of the plant, and all the capital costs. In comparison, an ammonia production plant in the United States costs about $5 billion.
Abbott said: “If you want to stop the flow of petrol, look at the oil. If you want to stop the flow of oil, look at the gas in the ground. If you want to stop the flow of the methane from the coal seam gas industry, look at the coal seam gas. It is all available at prices we can afford to pay.
“We have made a very major commitment to this project. We have signed an agreement with the South Australia government. We will build this plant. We will sell it to the South Australian government.
“These are the kind of decisions Australia needs to make if we are serious about taking advantage of what this country has to offer.”
Australian Government Minister for Resources and Tourism, Senator Ian Macfarlane, said: “This is a significant investment in the future of the nation by the Australian Government and for the people of Australia this is a win-win project which can create thousands of full time jobs and improve the health of