PERTH (miningweekly.com) – Mining equipment, technology and services provider Orica has been awarded A$25-million in government funding through the Clean Energy Finance Corporation (CEFC) to upgrade its processing plants at its Kooragang Island facility, near Newcastle in New South Wales, to abate emissions of nitrous oxide.

The A$37-million Kooragang Island decarbonisation project will install proven nitrous oxide greenhouse gas (GHG) emissions tertiary abatement technology at its Kooragang Island plant from 2022, with commissioning in 2023.  

To facilitate the project, the New South Wales government’s Net Zero Industry and Innovation Program will also co-invest A$13.06-million.

“The Kooragang island decarbonisation project is a powerful example of a public-private partnership towards decarbonisation and marks a critical step in achieving our medium-term 2030 emissions reduction targets and progress towards our net-zero ambition,” Orica MD and CEO Sanjeev Gandhi said.

We’re committed to working with our stakeholders to forge a pathway towards a lower carbon future together. 

“Thanks to the support of the New South Wales and federal governments we have been able to co-invest and move forward on implementing a significant decarbonisation project.”    

Viewed as a long-term aid for emissions reduction in high-pressure nitric acid manufacturing plants, the tertiary catalyst abatement technology uses catalytic decomposition to destroy nitrous oxide emissions. Nitrous oxide, generated as a by-product of nitric acid production, is the primary source of GHG emissions at the Kooragang Island facility.  

The technology will be installed across all three nitric acid manufacturing plants used in the production of ammonium nitrate at Kooragang Island, and is designed to eliminate at least 567 000 t/y of carbon dioxide (CO₂) from the site’s operations. It is expected to reduce the sites total emissions by 48% and deliver a cumulative emissions reduction of at least 4.7-million tonnes of CO₂ by 2030 based on forecast production.

New South Wales Treasurer, and Minister for Energy and Environment Matt Kean said the Kooragang Island decarbonisation project will contribute to the government target of reducing New South Wales emissions by 50% by 2030.

“The project is expected to deliver a cumulative emissions reduction equivalent to 567 000 t of CO₂ per year providing significant decarbonisation benefits within the decade. 

“This is a great example of what can be achieved by hard-to-abate industries transitioning towards net-zero emissions, under our A$750-million Net Zero Industry and Innovation Program announced earlier this year.” 

Gandhi said on Tuesday that the decarbonising project ensures Orica’s domestic manufacturing operations remain competitive in a low carbon economy, bringing with it significant environment and regional economic and social benefits.  

“There are also benefits for our customers - by reducing the emissions intensity of our ammonium nitrate we are in a position to offer competitive and lower-carbon intensity ammonium nitrate products, helping them to achieve their sustainability goals. 

“It also allows us to look at longer-term investments in technologies, including production of hydrogen from renewable energy,” he added.

Federal Minister for Industry, Energy and Emissions Reduction Angus Taylor said that the investment into the decarbonising project would be one of the largest single abatement projects to be financed by the CEFC.

“The funding will help Orica upgrade three plants at its Kooragang Island facility near Newcastle and is a great example of how governments and industry can work together to reduce emissions and grow industries in our regional communities.

“The government is committed to supporting hard-to-abate industries, like manufacturing and mining, through our Technology Investment Roadmap which will see technological solutions pave the way for growth in our industries while reducing emissions.”

The Kooragang Island decarbonisation project was approved in March 2021 by the Clean Energy Regulator to participate in Australia’s carbon market. Orica is eligible to generate Australian Carbon Credit Units (ACCUs) and was awarded the first optional Carbon Abatement Contract under the Facility Method for the purchase of around 3.4-million ACCUs by the Australian government.

This approach has enabled investment confidence by managing ACCU price risk.