Strike Energy Ltd (ASX: STX) shares are in focus today following the company's latest announcement. This morning, Strike Energy advised that its Project Haber is forecast to reduce the carbon footprint of urea production by up to 60% in Australia. At yesterday's market close, the Strike Energy share price finished the day trading at 36 cents.
Strike Energy also estimates the project will boost the economy of Western Australia's mid-west region by 3.8% per annum.
Let's take a closer look at the oil and gas developer's latest news.
Haber Project update
Strike Energy shared its Haber Project's carbon and economic impact assessment with the market this morning.
It found the project could increase Australia's gross domestic product by an average of $246 million each year and avoid the release of up to 795,000 tonnes of carbon annually.
The Haber Project aims to produce urea, a synthetic fertiliser high in nitrogen. It's made with a combination of natural gas, nitrogen and water.
Strike Energy found the project will see a 50% to 60% reduction in carbon emissions from the production of urea used in Australia. According to the company, this would be achieved through its modern technology, high-quality feedstock and green hydrogen inputs.
According to Strike Energy, 95% of the urea currently used in Australia is imported from Saudi Arabia, Qatar, and China. In these countries, older ammonia and urea technologies are often used on poor-quality feedstocks like high-impurity gas or coal.
Strike Energy states the economic benefits of the project equate to an income boost of $10.3 billion. That's the equivalent of $664 in extra income each year for every resident of Western Australia's mid-west region.
Finally, the company said the project's contribution to Western Australia's payroll tax, port dues and GST will be the equivalent of the cost of a new high school each year.
Commentary from management
Strike Energy CEO and managing director Stuart Nicholls commented on the project's estimated benefits, saying:
Project Haber is fast becoming a project of national significance as Strike continues to identify additional economic and environmental benefits.
Project Haber personifies the intensions of the 'gas led recovery' and shows how the development of low-cost gas in partnership with green hydrogen and other renewable energy can transition Australia to a sustainable and viable lower carbon future.
Reducing the carbon intensity of Australia's agriculture will be complemented by a structural reduction in the costs of urea in Australia. This is a huge benefit for Australian farmers as they will be able to reduce their CO2 exposure in parallel to supporting the domestic economy.
Strike Energy share price snapshot
Investors will be hoping today's news provides a boost to the Strike Energy share price, which is currently down 5% since the market opened on Monday.
Though Strike Energy shares are still well and truly in the green year to date, currently up 22% in 2021. The company's shares are also up 153% over the last 12 months.
Strike Energy has a market capitalisation of around $701 million, with 1.9 billion shares outstanding.
