Aspiring Australian urea producer NeuRizer Ltd. (formerly known as Leigh Creek Energy) said it has had preliminary discussions on the acquisition of an ammonia and urea plant that is currently operating, and has begun due diligence on another after signing a confidentiality agreement.
Adelaide-based NeuRizer in its Sept. 18 ASX market update did not disclose the locations of the targeted acquisitions, but said the confidentiality agreement relates to a facility designed to produce 800,000 mt/y or urea, as well as ammonia. It expects to complete due diligence in the fourth quarter of 2023 with a decision expected in the first quarter of 2024.
A spokesman said the company is continuing discussions on the potential acquisition of the other facility and is considering “all options for financing and therefore ownership.” In addition, the spokesperson said it is uncertain at this stage whether NeuRizer will import at least some of the output from the acquired plant, should an acquisition be successful.
The company is pursuing parallel discussions for securing a strategic partner for its original NeuRizer Urea Project, which is planned to have an initial capacity of 1 million mt/y of urea and would utilize in-situ gasification (ISG) based on coal from the decommissioned Leigh Creek coal mine some 550 kilometres north of Adelaide (GM Aug. 5, 2022).
NeuRizer confirmed that due diligence with one of the parties has been completed and the relevant approvals are being sought, although it added that there is no guarantee that the negotiations will be successful. NeuRizer said it continues to work with the EPC contractor and partner, South Korea’s DL E&C Co. Ltd., on the project’s cost optimization.
NeuRizer also reported that it is looking to establish a urea distribution company in Australia and has held discussion with its Chinese partner Meijin Energy Investments (Hainan) Co. Ltd. (MEI). It said the distribution company would be tasked with handling urea imports and developing the market for urea from the NeuRizer Urea Project.
MEI already produces significant amounts of ammonia and urea, according to NeuRizer. A company spokesperson said NeuRizer is looking to import urea into Australia in 2024, including from Meijin.
MEI is a subsidiary of the Meijin Group, which is the largest integrated hydrogen company in China. NeuRizer in July signed an agreement with MEI to produce hydrogen in China through in-situ gasification for the developing fuel market.