Engineering Saipem, Clough to Develop Mega Urea Plant in Western Australia

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Under a joint venture, Saipem and Clough will establish a mega urea plant for Perdaman Industries in Western Australia. The plant aims to minimize both industrial emissions and the carbon footprint of fertilizer production.

Milan/Italy – Saipem and Clough, the Australian subsidiary of the Webuild Group, in an equally shared (50/50) joint venture, have reached full contractual effectiveness by the achievement of the Commencement Date for the development of Perdaman Industries’ urea plant on the coastline of Western Australia.

The above follows the agreement between the two partners, reported in the joint press release issued on May 27, 2022, and reflects the changed market scenario which has developed globally in recent months. The new contract value is slightly above 2.8 billion dollars (share of each JV participant around 1.4 billion dollars).

The plant will be part of a landmark project for Western Australia, generating on average 2,000 jobs during the construction phase and approximately 200 permanent jobs during the operational phase. The joint venture and Perdaman’s commitment to make a positive impact in the community are aligned, and a key aspect during the construction phase is to engage with the Indigenous and local communities through career, training and business opportunities ensuring long lasting social benefits.

The plant has been designed to minimize both industrial emissions and the carbon footprint of fertilizer production. Perdaman and the joint venture are committed to making the urea plant net carbon zero by 2050 and are implementing global best practices with respect to greenhouse gas emissions which represent their commitment to mitigating climate change. The plant also includes a world-class control system that will ensure that the urea produced is of the highest quality.

The joint venture will integrate Topsoe's cutting-edge Syncor Ammonia technology into the fertilizer 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.

Peter Bennett, CEO and Managing Director Clough said: “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. 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.”

Fabrizio Botta, Chief Commercial Officer at Saipem, commented: “Saipem has a unique experience and track record in the construction of urea/ammonia complexes. The project represents a worldwide reference in terms of high energy efficiency and degree of modularization. Flue gas CO2 emissions are minimized and the majority of the CO2 is captured directly in the pre-combustion process according to a design scheme typical of blue ammonia projects”.

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