Leading Australian gases and engineering company BOC Ltd has signed a $1 billion contract with Perdaman Chemicals & Fertilisers for the long-term supply of industrial gas.
Perdaman Chemicals & Fertilisers is planning to utilise clean energy technology to enrich the world’s crops with urea.
Under the contract, BOC Ltd, 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. The industrial gas will be used to 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 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 begin construction in the third quarter of 2011 post the conclusion of Perdaman’s project financing.
Describing the gas supply contract as a significant milestone, BOC South Pacific Managing Director, Colin Isaac says that the nitrogen and oxygen being supplied to Perdaman Chemicals & Fertilisers reaffirms the company’s commitment to clean and innovative technology solutions.
BOC views clean coal gasification as a major growth area and is very pleased to help develop new industry while boosting regional and state economies through the delivery of safe, reliable and proven gas products and technology.