PERTH (miningweekly.com) – Industrial chemicals and fertilizer manufacturer Incitec Pivot (IPL) on Monday said that it would undertake a feasibility study to convert its Gibson Island plant into a green ammonia manufacturing center, after being unable to secure affordable long-term gas for the plant.

Manufacturing at the plant will cease at the end of December 2022.

MD and CEO Jeanne Johns said after 50 years of continuous production and reinvestment at Gibson Island, the company was disappointed it was unable to secure affordable feedstock gas for the plant.  IPL will focus on its green ammonia feasibility study at Gibson Island to potentially re-purpose the site for the future. 

“We kept our promise to pursue every possible avenue to continue with gas as a feedstock for our manufacturing operations at Gibson Island, but despite significant efforts over recent months we have been unable to secure affordable gas supply beyond the end of our current gas contract,” Johns said. 

“We are deeply disappointed that this will impact our loyal employees and their families. The wellbeing and safety of our employees is our key priority during the next 14 months, and we will be offering our people whatever assistance we can, including redeployment opportunities where possible.  

“I would like to thank our many agricultural and industrial customers and suppliers who have supported our manufacturing operations at Gibson Island. We will be working to support them as we manage this transition. 

“The Queensland government’s support of domestic manufacturing helped us secure our existing contract, and we are grateful for their support during the past few years as we have sought to bridge to a long-term sustainable manufacturing base at Gibson Island.” 

IPL recently announced a partnership with the green arm of iron-ore major Fortescue, Fortescue Future Industries (FFI), to conduct a feasibility study into industrial-scale manufacturing of green ammonia conversion from renewable hydrogen at Gibson Island, potentially creating a low-carbon future for the plant.    

“IPL’s feasibility study with FFI is an exciting opportunity aligned to our pathway towards a decarbonised future. We will keep our employees informed of key milestones and how potential green ammonia manufacturing at Gibson Island could inform how we manage the planned closure of the manufacturing plant,” Johns said.