Saipem and Clough reach full contractual effectiveness for Perdaman urea plant project

McGowan commits funding for Pilabra and Mid-West projects

Saipem and Clough, the Australian subsidiary of the Webuild Group, in an equally shared joint venture, have reached its full contractual effectiveness for the development of Perdaman Industries’ Western Australian urea plant.

The joint venture and Perdaman stated their key goal during the construction phase is to engage with the Indigenous and local communities through career, training and business opportunities to ensure long lasting social benefits.

“We are proud to be part of such a strategic project for Western Australia, that will provide positive economic, financial, social and environmental outcomes for the communities around it,” Clough chief executive officer and managing director Peter Bennett said.

“The project is a true “value adding” manufacturing facility for one of Australia’s most valuable natural resources – natural gas.

“The joint venture has worked collaboratively with Perdaman for several years on the development of this project, and we look forward to continuing the collaboration between City of Karratha, Murujuga Aboriginal Corporation and Traditional Custodians of the land for the benefit of all.”

The plant will be part of a landmark project for Western Australia, generating on average 2000 jobs during the construction phase and approximately 200 permanent jobs during the operational phase.

The plant has been designed to minimise both industrial emissions and the carbon footprint of fertiliser production.

Perdaman and the joint-venture are committed to making the urea plant net carbon zero by 2050 and is implementing global best practices with respect to greenhouse gas emissions which represents our commitment to mitigating climate change.

“Saipem has a unique experience and track record in the construction of urea/ammonia complexes,” Saipem chief commercial officer Fabrizio Botta said.

“The project represents a worldwide reference in terms of high energy efficiency and degree of modularisation.

“Flue gas CO2 emissions are minimised and majority of the CO2 is captured directly in the precombustion process according to a design scheme typical of Blue Ammonia projects.”

The plant also includes a world-class control system that will ensure that the urea produced is of the highest quality.

The above follows the agreement reached on 27 May 2022, and reflects the changed market scenario which has developed globally in recent months. The new contract value is slightly above $USD2.8 billion.

The joint venture will integrate Topsoe’s cutting-edge SynCOR Ammonia technology into the fertiliser complex, for the construction of the world’s largest ammonia plant on a single synthesis reactor, and Saipem’s proprietary Snamprogetti Urea technology to produce urea.

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