'Haber could very well end up being more important than ever.'...

'Haber could very well end up being more important than ever.'

Hi Jiggy

Just how important is already becoming apparent, with the Greens claiming their amendments to the Government's emissions Bill will effectively torpedo many future gas and coal projects.

Take that with a grain of salt, of course, because Bandt will be gilding the lily to the fullest extent to prove the Greens' credentials and influence over climate policy. Already a range of experts are lining up to agree with, debunk, or qualify Bandt's claim, but one thing that is apparent is that fossil fuel companies will have to jump ever-higher hurdles to conduct their businesses.

From the day Haber was unveiled, it was apparent that it was smart politics - and smart business - to develop a credible zero emissions strategy. I'd now go as far to say that as of yesterday's announcement, Haber immediately increases Strike's value. That won't happen immediately, of course, but as the dust settles and the consequences of the new legislation take effect, smart boards will realise their companies can no longer rely on buying their way out of pollutive practices. They will need to show just how they are going to cap or reduce their emissions to fit within the Canberra-imposed national emissions targets - and that becomes bloody difficult when your business is opening new gas or coal fields.

If I were a major gas company, I'd be looking at whatever other activities I might undertake in order to balance my emissions, and fertiliser production is an obvious one.

Projects like Haber cannot be done in five minutes. We are now 26 months down, have just entered a FEED engineering design contract (November '22) and have just filed an environmental application. Funding is far from settled. It's a slow, slow burn and progress to date surely makes Strike even more attractive to a would-be suitor who would like a two-plus year headstart on proving up its climate change credentials.

Oh, and let's not forget the oft-maligned but still promising geothermal project, which if Strike - or someone else - could pull it off commercially would kick massive emissions goals.

I hasten to add I am not pushing a climate change barrow here. I really don't care what your particular view of climate change is, but the reality is that Aussie O&G and coal companies have to deal with this new legislation if they are to run successful, profitable businesses in the mid term. And Strike is better placed than any I can think of.

OOO