Australia: Perdaman Chemicals and Fertilisers has recently signed an exclusive offtake agreement with Incitec Pivot Limited. This partnership will entail the supply of up to 2.3 million tonnes of granular urea annually for a duration of 20 years to Incitec Fertilizers. The source of the supply will be Perdaman's plant, which is currently under construction in Karratha, Western Australia. The plant will be utilizing natural gas in producing urea fertiliser, a crucial input in Australian agriculture. The supply of urea is slated to commence from mid-2027 upon completion of the construction.
Perdaman's partnership with IPF is set to boost Australia's manufacturing industry and create more highly skilled job opportunities while ensuring long-term supply security for local farmers. Through this collaboration, IPF will gain access to a competitive volume of domestic urea supply, enabling them to expand their sales both locally and in growing global markets. With the challenges posed by global market conditions and supply security, this partnership comes as a welcome development for the agricultural sector in Australia and beyond.
IPF is thrilled to announce its collaboration with a ground-breaking project that holds great significance to the Australian agriculture industry. As part of IPF's strategy to offer sustainable and cost-effective plant nutrition solutions, partnership aims to help farmers increase productivity, improve crop yields, and prioritize the health of their soil. Alongside commitment to supporting domestic manufacturing, IPL, being the largest manufacturer of plant-nutrition products in Australia, hopes to play a vital part in the agriculture industry's target of becoming a $100 billion industry by 2030.
Both the Australian and Western Australian governments have awarded Major Project Status to the project, which is anticipated to provide Northern Australia with approximately $8.5 billion in public benefit. The project is also expected to create approximately 2,000 construction jobs, as well as 200 operational and indirect jobs once production commences.
