Key points
- Strike Energy shares accelerate on back of Major Project Status award for Haber Project
- Proposed development of fertiliser production facility expected to reduce carbon intensity of Australian farming
- The award streamlines approvals processes for Strike Energy
The Strike Energy Ltd (ASX: STX) share price is pushing higher at midday on Wednesday.
This comes after the company announced an update on its Project Haber, located near Geraldton in Western Australia's mid-west region.
At the time of writing, the energy producer's shares are swapping hands for 24.5 cents, up 11.36%.
Strike Energy secures 'Major Project Status' award
The company's latest release has pushed Strike Energy shares up to a near four-month high today.
According to today's statement, the Australian Federal Government has awarded Stike Energy's Project Haber Major Project Status.
The proposed fertiliser production facility will replace Australia's reliance on more than $1 billion of fertiliser imports each year.
Strike Energy intends for Project Haber to provide locally sourced fertiliser that would improve Australian agriculture's competitiveness. In addition, this is expected to reduce the carbon intensity of Australian farming.
The decision to award the major project status is based on the opportunity to advance Australia's downstream manufacturing industry and support the integration of low carbon technologies and renewable hydrogen.
Notably, the project aligns with Australia's National Hydrogen Strategy and has the potential to reduce carbon intensity of the urea used in Australia by 60%. This is through adopting current ammonia technology and integrating green hydrogen supplies.
Major Project Status will provide Strike Energy's Haber Project with certain services to streamline approvals processes.
Strike Energy managing director and CEO Stuart Nicholls commented:
Australia has one of the world's greatest endowments of natural resources, whether that is gas, wind, solar or geothermal energy. At Strike we believe we should maximise the benefit of those resources for the nation by adding value to them here.
By re-domesticating urea manufacturing in WA's Mid West, Strike's Project Haber will create regional jobs, incubate WA's hydrogen economy whilst making our agriculture sector more competitive and carbon efficient.
About the Strike Energy share price
Over the past 12 months, the Strike Energy share price has fallen by around 20% in value. However, when looking at year to date, its shares are up 19%, attributable mostly to today's gains.
Strike Energy commands a market capitalisation of roughly $445 million, with approximately 2.03 billion shares on its books.
