The Strike Energy (ASX:STX) share price is on watch today. Here's why

The Strike Energy Ltd (ASX: STX) share price is on watch today with news of the Haber Project's carbon and economic impact assessment.

| More on:
builder peeking over board as if watching asx share price

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.

The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Energy Shares

A bearded man holds both arms up diagonally and points with his index fingers to the sky with a thrilled look on his face over these rising Tassal share price
Energy Shares

Why is the Beach Energy share price racing higher on Thursday?

This energy producer delivered some big news this afternoon.

Read more »

A person is weighed down by a huge stack of coins, they have received a big dividend payout.
Energy Shares

Own Ampol shares? Get ready for your monster dividend payment

Ampol investors are about to enjoy their largest-ever dividend.

Read more »

A man sees some good news on his phone and gives a little cheer.
Energy Shares

Buy Woodside shares for a 20% gain and 4.5% dividend yield

Morgans thinks investors could get big returns from this energy giant.

Read more »

Woman holding $50 notes and smiling.
Dividend Investing

A 36% yield from this ASX dividend share? Here's how these forward-looking investors made it happen

Some savvy passive income investors are earning a 36% yield from this ASX dividend star.

Read more »

A Paladin Energy miner wearing a hard hat and protective gear stands in front of a large mining truck and smiles to the camera.
Energy Shares

Uranium is set to boom, and this is the 'premium' ASX stock to buy

Shaw and Partners' Jed Richards reckons these are the shares to buy for the nuclear energy theme.

Read more »

Happy coal miner.
Energy Shares

How these ASX 200 energy shares could unexpectedly burn brighter

ASX 200 energy shares are facing rising global demand for their products.

Read more »

Worker inspecting oil and gas pipeline.
Energy Shares

ASX energy shares losing charge amid fresh warnings of gas supply shortfalls

Many energy commodity prices fell overnight and this is hitting ASX energy shares today.

Read more »

A miner stands in front oh an excavator at a mine site
Energy Shares

'We have reached a bottom': 5 ASX uranium shares leaping higher this week

ASX uranium stocks have enjoyed explosive share price growth over the past year.

Read more »