H2Gro has launched today with ambitions to develop Australia’s green fertiliser industry and expects to have a commercially operating production facility by Q4 2023.
The company was formed after seeing the impact of the global shortage in fertilisers which has led to subsequent price increases and is threatening the supply chain for Australian farmers.
“Over 90% of urea is currently imported, with Western Australia, in particular, depending on Russian imports of urea ammonium nitrate.”
The company intends to fill this large gap in the market by becoming Australia’s first industrial manufacturer of green urea fertiliser, which will help provide reliable supply for the Australian $5.3b fertiliser industry and lower the current reliance on importing carbon-intensive fertiliser from overseas manufacturers.
The company’s Directors have begun leveraging their strong network of relationships in Western Australia through discussions with potential offtakers, to secure land for production and gain access to the 10 million tonnes of biomass waste that can be used to produce the fertiliser.
“The discussions with potential offtakers have been extremely positive, they are showing significant interest in a carbon-friendly and locally manufactured green urea alternative to imported fertiliser.”
This will be supported by H2Gro’s technology partner CAC-H2 which has a proven track-record in developing urea production capabilities and Biomass Projects, the company’s lead on engaging stakeholders/customers/suppliers in the region.
Once the agreements are in place, the plant is designed and building permits are approved, H2Gro will seek a listing on a favourable exchange in Q1 2023 to finance the production of their facility.
The company is set to launch a capital raise in the coming weeks to fund the initial stages of developing the plant.