Queensland’s independent Coordinator-General has declared the $1 billion Gladstone Energy and Ammonia Project, which has the potential to deliver up to 1000 jobs for the region, to be a ‘coordinated project’.
Minister for State Development, Manufacturing, Infrastructure and Planning, Cameron Dick, said Australian Future Energy Pty Ltd’s (AFE) project, which is located in the Gladstone State Development Area, now requires an environmental impact statement to be prepared.
“If approved, this project will make a significant contribution to the regional economy requiring a peak workforce of 800 jobs during the two-year construction period and up to 200 full-time equivalent jobs for the 30-year operational period,” the Minister said.
In an Australian first, Brisbane-based AFE proposes to convert 1.5 million tonnes per annum of coal to produce up to 330,000 tonnes of ammonia per annum, six to eight petajoules of synthetic natural gas per annum and up to 96 megawatts of electrical power generated from waste gas and heat.
“This ammonia and synthetic natural gas will then be used by major industrial users, including those focusing on agriculture, the mining industry and advanced manufacturing,” the Minister explained.
In Australia, ammonia is commonly used to make products used in the agricultural and mining industries, such as ammonium nitrate as an explosive in mining and nitrogen bases fertilisers in agriculture. Despite ammonia being produced elsewhere in the nation, this is the first time that the proposed coal gasification technology will be used to produce ammonia in Queensland.
“The project also proposes to use coal sourced from existing regional mines located close to Gladstone, further strengthening regional employment and job security,” Mr Dick said,
The Coordinator-General’s decision to declare this project a ‘coordinated project’ is likely to help to streamline approvals and fast-track delivery of the project. A coordinated project approach also means that all the potential impacts and benefits of the project are considered in an integrated and comprehensive manner.
Member for Gladstone, Glenn Butcher, said that locating this proposed project within the Gladstone State Development Area will help support the region’s growing manufacturing industry, make a fundamental contribution to the local economy and provide numerous flow-on employment and economic benefits for the community.
“The proponent has estimated that 1280 indirect jobs would be created during the operational phase, generating significant additional jobs for regional suppliers and contractors as well as increased employment opportunities for local communities,” he said.
“Manufacturing in Queensland is thriving thanks to our government’s commitment to building this sector, so initiatives which convert coal into resources which support this growing industry along with agriculture and mining are the types of projects we want our region to host now and into the future,” Mr Butcher commented.
The project is estimated to commence construction mid-2020, with the first ammonia production proposed in mid-2022.
More information on the Gladstone Energy and Ammonia Project can be accessed here.