Governments

Green-washed urea facility strikes deal with climate opponents Koch Industries

Published by

A proposed Australian fertiliser factory, that has faced accusations of green-washing its plans to produce urea using fossil gas, has struck a supply deal with the controversial, climate denial funder, Koch Industries.

This week, Strike Energy announced that it had signed an offtake agreement with Koch Fertilizer, a subsidary of the US-based Koch Industries, for the supply of up to 1.4 million tonnes of urea from its planned Project Haber fertiliser facility.

The link with Koch Industries is perhaps an appropriate choice for a company whose management had a major role in convincing the Morrison government to adopt a ‘gas led recovery’ as part of its economic response ot the Covid pandemic.

Koch Industries ranks as one of the world’s largest dealers in fertilisers, making its founders some of the world’s richest people – who have in turn used their riches to stridently oppose to any attempts to tackle climate change.

The industrial conglomerate has substantial investments in oil and gas, and its founders – Charles and and the late David Koch – have poured hundreds of millions in funds to groups pushing climate change denial and opposition to stronger climate policies.

The deal effectively links Koch Industries with a company backed by the architect of the Morrison government’s ‘gas led recovery’.

Strike Energy’s directors include Nev Power, who was picked by the Morrison government to chair its National Covid Commission, which recommended that the appropriate government response to the Covid-19 pandemic was to fund new fossil gas projects.

Strike’s CEO Stuart Nicholls said the $3 billion urea project “personifies the intensions of the ‘gas led recovery’.”

In February, federal energy and emissions reduction minister Angus Taylor revealed that Strike Energy’s urea project project would benefit from a fast-tracked approval process.

At the time, Taylor said the project would “deliver significant emissions reduction to Australia’s urea manufacturing sector through the use of advanced ammonia and gas processing technology, as well as dedicated clean hydrogen.”

But as detailed by RenewEconomy, Strike Energy’s proposed urea production facility will predominently use supplies of fossil gas as a feedstock – despite promoting itself as a ‘low emissions’ facility.

Company documents show the project will use feedstocks made up of just 1.25 per cent green hydrogen, with the remaining 98.75 per cent being made up of fossil gas.

The emissions saving would amount to 0.01 tonnes of carbon dioxide per ton of urea produced, the documents suggest.

The offtake agreement effectively links a company that faces genuine claims about ‘green-washing’ its urea production facility and the US-based conglomerate responsible for a large proportion of the world’s climate disinformation campaign.

In April, Strike said that Power would retain his position on the company’s board, after Power had taken a leave of absence to deal with the legal impllications of his breach of Covid-19 border restrictions – which resulted in a suspended prison sentence.

Michael Mazengarb is a Sydney-based reporter with RenewEconomy, writing on climate change, clean energy, electric vehicles and politics. Before joining RenewEconomy, Michael worked in climate and energy policy for more than a decade.
Michael Mazengarb

Michael Mazengarb is a Sydney-based reporter with RenewEconomy, writing on climate change, clean energy, electric vehicles and politics. Before joining RenewEconomy, Michael worked in climate and energy policy for more than a decade.

Recent Posts

Hydro Tasmania on the hunt for a new CEO amid political and renewable turmoil

Tasmanian utility begins hunt for new CEO, following the news that current chief will step…

28 March 2024

Capacity Investment Scheme needs to set high bar for communities hosting renewables

Without exception, the CIS should encourage projects that do good community engagement, with good environmental…

28 March 2024

Australia’s biggest coal generator teams up with SunDrive to make solar at Liddell

AGL signs MoU with Cannon-Brookes backed PV innovator SunDrive to explore "first of its kind"…

28 March 2024

Solar ducks and big batteries: How Alice Springs grid could run five hours a day with no fossil fuels

Alice Springs may be able to run on 100 pct renewables for an average five…

28 March 2024

“Unconscionable:” Eraring delay could cost $150m a year, adding to massive Origin windfall, report says

New analysis says the potential taxpayer cost of keeping Eraring open for another few years…

28 March 2024

Solar Sunshot: Albanese pledges $1bn to take Australia from “pit to panel”

Federal Labor puts its money on Australian made solar, pledging $1bn to kickstart the supply…

27 March 2024