Coal to fertiliser producer NeuRizer has secured a second customer for its one million tonne per annum urea plant under construction at the former Leigh Creek brown coal field in mid-north South Australia.
The company told investors it had signed a Term Sheet with Samsung C&T Corporation to negotiate a 5-year Sales and Marketing Agreement for 100,000 – 300,000 tonnes per annum of granular urea from NeuRizer’s proposed urea production facility at Leigh Creek in South Australia.
This agreement is in addition to the binding, 5-year, $1.5 billion ‘take or pay’ offtake agreement NeuRizer has with Daelim Co Ltd contracting up to 800,000 tonnes per annum of urea sales.
Daelim is a 9.1 percent shareholder in NeuRizer, and its subsidiary DL E&C is conducting the engineering, procurement, construction and commissioning of the plant.
NeuRizer has developed in-situ coal gasification technology to produce gas for an initial production of one million tonnes of urea.
The NeuRizer Urea Project (NRUP) is a nationally significant project that will employ more than 1,200 full time staff when operational.
With much of the company’s production accounted for NeuRizer told investors that it planned to be at the forefront of Australian urea production – Australia is an importer of urea following the closure of Incitec Pivot’s Gibson Island, Brisbane plant due to an inability to procure gas feedstock.
NeuRizer said in a statement: “The (project) is nearing completion of its bankable feasibility study, with the front end engineering and design (FEED) finalised.
“Upon meeting the Final Investment Decision criteria, detailed plant design will commence.”
NeuRizer has also signed a binding contract with China’s Meijin Energy Investments with the companies conducting detailed assessments of two potential urea production projects in China.