Australian gases and engineering company BOC have secured a long term industrial gas supply contract to the value of an estimated one billion Australian dollars with Perdaman Chemicals & Fertilisers which is planning to utilise clean energy technology to enrich the world’s crops with urea.
Under the contract, BOC, a member of The Linde Group, will supply nitrogen and oxygen over a 20-year period with an additional 5 year option to the Perdaman project which will transform sub-bituminous coal into urea using innovative and clean coal gasification technology.
The two BOC air separation plants will produce approximately 4,800 tonnes of oxygen per day and around 7,000 tonnes of nitrogen per day, more than doubling the current Australian and New Zealand total industry supply of Air Gases.
The Collie ASU project will take three years to complete and is expected to start construction in the third quarter of 2011 post the conclusion of Perdaman’s project financing.
BOC South Pacific Managing Director, Colin Isaac, said the contract to supply nitrogen and oxygen to Perdaman Chemicals and Fertilisers (PCF) was a significant milestone for the company, underpinning its commitment to clean and innovative technology solutions.
“We see clean coal gasification as a major growth area so we are delighted to be on board with Perdaman who are promoting best-in-class technologies in this field, adding value to Australia’s existing coal resources and supporting Australian industry,’’ he said.
BOC is very pleased to be playing its part in helping to develop new industry and boosting regional and state economies through the delivery of safe, reliable and proven gas products and technology,’’ he said.
Perdaman Chemicals & Fertilisers Chairman & Managing Director, Vikas Rambal said this is another important milestone, as we proceed steadily towards construction phase of our project. We look forward to an effective and mutually beneficial long term alliance with BOC.
Urea is considered an essential fertiliser in meeting the needs of an expanding global population and increased demand for food. It is regarded as the most efficient fertiliser available being clean, safe, easy to transport and economical to manufacture and apply.