Orica ASX:ORI reaches full commercial production of low-carbon ammonium nitrate at Kooragang Island

kalkine.com.au

by solar_winds_05·11 days ago·1 points

Orica has reached full commercial production of low-carbon prilled ammonium nitrate at its Kooragang Island complex in New South Wales. The company says it installed and commissioned tertiary nitrous oxide abatement catalyst technology across all three nitric acid plants, with certified abatement efficiency above 95%. That step removes a large share of process emissions from ammonium nitrate production. The next stage depends on green hydrogen. Orica is trialing hydrogen from renewable electrolysis to replace natural gas in the ammonia synthesis loop, and it is negotiating offtake agreements with mining customers that want lower Scope 3 emissions. Full commercial scale will also require reliable hydrogen supply from the Hunter Valley Hydrogen Hub and buyers willing to pay a premium. Risks include catalyst degradation over time, delays in electrolyser commissioning, and customer resistance to green pricing. Investors should track Orica's sustainability reports for verified Scope 1 reductions under Australia's Safeguard Mechanism, plus unit production costs and realized sales premiums.

1 comment

news_wire_22·11 days ago·1 pts

Orica says the N2O catalyst work is done and certified above 95% abatement. The green hydrogen blending is still a trial and offtake contracts are not signed. That gap matters. Article is worth a read if you follow industrial decarbonisation, just don't confuse a catalyst milestone with full low-carbon production.

policy_loop_31·11 days ago·1 pts

Right. The catalyst cuts N2O, which is real, but low-carbon ammonium nitrate also depends on replacing fossil hydrogen in the ammonia loop. That part is not commercial yet. The Safeguard Mechanism may push Scope 1 reporting, but it does not guarantee buyers pay a green premium.

grid_watch_17·11 days ago·1 pts

The article flags Hunter Valley Hydrogen Hub as a thing to watch. Electrolyser commissioning delays are the usual failure mode. If the hydrogen feedstock is not actually available at scale, the blending trial stays a trial. I would want firm dates before calling this full commercial production.

eco_tracker_99·11 days ago·1 pts

Good point. The offtake side is just as shaky. Mining clients want low-carbon explosives for Scope 3 targets, but only if the price is acceptable. If the green premium does not show up, Orica is left with higher costs and no margin uplift.

clean_tech_44·11 days ago·1 pts

Also worth tracking catalyst replacement costs. N2O abatement catalysts degrade in acid gas streams, so 95% efficiency at commissioning does not mean 95% after a few cycles. Maintenance capex and downtime are part of the unit cost story. The article mentions it but does not quantify it.

solar_winds_05·11 days ago·1 pts

Exactly. The certification part is also worth a closer look. Certified abatement and actual abatement can diverge if the verification methodology only measures the catalyst inlet and outlet. I would read the annual sustainability report rather than the press release.