Incitec Pivot Limited Releases 2022 Climate Change Report


Incitec Pivot Limited has this week released its second, stand-alone Climate Change Report. Aligned to the Task Force on Climate-Related Financials Disclosures (TCFD) guidelines, the Report details the progress that IPL has made over the last 12 months as we work towards our ambition to be Net Zero by 2050, or sooner if practicable.

The Climate Change Report coincides with the release of IPL’s 2022 Annual Report.

IPL Managing Director & CEO Jeanne Johns said: “This year we have seen exciting, practical progress on our journey to Net Zero with a range of significant and innovative projects advanced to decarbonise our operations.

“We are progressing four projects, in Australia and internationally, at pace as we seek to deliver material change in our operational emissions. These projects collectively give us a pathway above 42% reduction in the medium term with our current asset portfolio.”

The Climate Change Report reiterates IPL’s commitment to its emission reductions targets and includes information on each project, Moranbah, Qld tertiary nitrous oxide abatement, Waggaman, Louisiana geological sequestration, the conversion of our Gibson Island, Qld manufacturing facility to green ammonia, and nitrous oxide abatement for our Louisiana, Missouri, facility.

Ms Johns said these are ground-breaking projects globally for ammonia production decarbonisation.

“I am proud to present our contributions, not only to decarbonise our own operations, but to lead the way in producing green ammonia for use in other industries’ Net Zero journeys.”

Ms Johns said, importantly, IPL will revisit its emission reduction targets in 2023 when the Science Based Targets Initiative releases its methodology for the chemicals sector Paris-aligned target setting.

“This is expected to outline a specific science-based reduction trajectory and methodology for ammonia and ammonia derivative production.”

IPL will continue to provide updates as it works with customers and stakeholders to better care for its people, the community and the environment.

Read the climate report here.

Project summaries:

Moranbah: tertiary nitrous oxide abatement

The Dyno Nobel Moranbah nitric acid plant was built in 2012 as part of the Moranbah ammonium
nitrate manufacturing facility. The plant was built with secondary abatement installed, which reduces
potential N2 O emissions by 50-60%, and has abated an estimated ~400,000 tCO2 e each year for the
past nine years. Since these reductions were being achieved well before our 2020 baseline was set,
further reductions require technology less commonly applied to nitric acid plants.
After investigation in 2021, IPL approved the installation of tertiary N2 O abatement at Moranbah. Up
to 99% of N2 O process emissions, which are created during nitric acid manufacture, are removed
from the tail gas stream through catalytic conversion to naturally occurring nitrogen and oxygen. Once
installed, a further ~200,000 tCO2 e will be abated annually at Moranbah, which equates to a 5%
reduction against IPL’s 2020 baseline, and a 7% reduction for the Dyno Nobel business against its 2020
baseline. The project is expected to be installed in 2024 and will underpin the achievement of IPL’s 5%
by 2025 reduction target.

Waggaman: geological sequestration

Emissions from WALA, which began operations in late 2016, represent ~44 per cent of Dyno Nobel’s
total global GHG emissions. During 2022, a FEED study was approved for a Carbon Capture Facility
(CCF) at the Dyno Nobel Waggaman, Louisiana (WALA) ammonia manufacturing facility. The CCF is
intended to capture the pure stream of CO2 created during the ammonia manufacturing process. Due
to its high concentration, this CO2 stream is much more economic to process than many other
industries’ CO2 streams, with only drying and compression required before transport via pipeline to a
permanent geological sequestration site.

Memorandums of Understanding (MOU’s) have been established with several shortlisted parties to
work through options for transport and deep well injection. Louisiana is an ideal site for CCS due to its
geology, its existing CO2 pipeline infrastructure, and a range of potential local partners with
experience in using proven technology and management techniques to meet the very stringent
regulatory requirements set by the US EPA for Class VI wells. Subject to the successful completion of
the FEED study, construction of the carbon capture unit at WALA is expected to begin in 2023 and be
completed by the end of 2025

Gibson Island: Conversion to green ammonia

The Gibson Island Green Ammonia project is a partnership between IPL and Fortescue Future
Industries (FFI) to investigate green ammonia production at Incitec Pivot Fertilisers’ Gibson Island site.
The proposal under investigation is for FFI to construct an on-site water electrolysis plant to produce
hydrogen from the electrolysis of water (H2 O) using renewable electricity, thereby dramatically
reducing GHG emissions. FFI would develop and operate the hydrogen manufacturing facility, with IPL
operating the ammonia manufacturing facility.

The project progressed to FEED stage in 2022 and secured an AU$13.7m ARENA grant. Should the
project proceed to a final investment decision, it would be Australia’s first industrial scale green
ammonia production facility, demonstrating existing infrastructure can be retrofitted to utilise zeroemissions
energy sources. The proposed water electrolysis facility would produce up to 50,000 tonnes
of renewable hydrogen per year and replace all of Gibson Island’s current gas feedstock more than
95% of its natural gas energy use. This would result in a 44% reduction for Incitec Pivot Fertilisers
against its 2020 baseline and a 12% reduction against IPL’s 2020 baseline.

Louisiana, Missouri: Nitrous oxide abatement

Abatement of N2 O at Dyno Nobel’s Louisiana, Missouri (LOMO) nitric acid plant has been under
investigation for some time, as this site has the company’s only nitric acid plant without some form of
abatement already installed. In 2021, Continuous Process Emissions Monitoring (CPEM) technology
was installed at the plant to improve measurement and allow a more accurate 2020 baseline to be
established, with stack testing throughout 2022 to further confirm actual emissions. Secondary and
tertiary abatement options are being investigated, as each offers different costs, installation timelines,
and carbon crediting options.

A scheduled maintenance shutdown planned for 2023 would allow the installation of baskets with the
ability to hold a secondary abatement catalyst. The use of such catalysts would result in circa 10%
reduction in Dyno Nobel’s global operational GHG emissions, and this opportunity is being actively

For more information:


Matthew Flugge
Group Vice President Corporate Affairs
Mobile: +61 409 705 176

Michael Bennett
Group Corporate Affairs Manager
Mobile:+61 412 901 229