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Case study

Landmark investment tackles emissions in chemical manufacturing

World leading technology to cut nitrous oxide emissions

A pioneering CEFC investment in the manufacturing sector will reduce emissions of a potent greenhouse gas by deploying proven technology in an Australian industry first.

$25m

investment

567,000 tCO2-e 

savings/year

Australian first

technology

The CEFC has been instrumental in facilitating the Kooragang Island Decarbonisation Project funding. Having effective emissions reduction technology available is important, but it’s the support and financing from our partners, including the CEFC, that’s critical in allowing us to effectively and efficiently implement this technology across our operations.
Sanjeev Gandhi
Orica Managing Director and Chief Executive Officer

Our investment

The $25 million CEFC commitment will enable manufacturer Orica to upgrade processing plants used in the production of ammonium nitrate with technology designed to abate nitrous oxide emissions.

Tertiary nitrous oxide abatement technology will be installed in three nitric acid plants at Orica’s Kooragang Island facility in New South Wales from 2022 – the first time the technology has been used in Australia. The technology is highlighted in the Australian Government Technology Investment Roadmap.

This project is the first major direct investment by the CEFC in the manufacturing sector, it also represents one of the largest single abatement projects financed by the CEFC.

our impact

The manufacturing sector is responsible for 11 per cent of Australia’s carbon emissions. Globally, industry accounts for 23 per cent of greenhouse gas emissions, with emissions from the sector rising nearly 70 per cent between 1990 and 2014.

This project will eliminate more than 567,000 tonnes per annum of CO2-e through the abatement of nitrous oxide, a greenhouse gas that is 265 times more potent than carbon dioxide.

While innovation and cost reduction have helped drive the decarbonisation of sectors such as property, transport and energy, the pathway to lower emissions in manufacturing has proved more challenging.

Hurdles including a lack of technological solutions, financial incentives and customer willingness to pay a premium for green products have slowed meaningful progress.

As new advances come to market, manufacturers who are alert to the need to reduce their carbon footprint can take advantage of such technological developments. Orica is confident that the sustainability measures at the Kooragang Island facility will serve as a demonstration case for the opportunities to reduce nitrous oxide emissions in the manufacturing industry.

Orica is a founding partner of the Australian Industry Energy Transition Initiative, which brings together industry and finance companies working towards emissions reduction in hard-to-abate supply chains.

Orica is a leading Australian manufacturer and the world’s largest provider of commercial explosives and blasting systems to the mining and infrastructure sectors. It supports the Paris Climate Agreement goals and has committed to reducing scope 1 and scope 2 emissions by at least 40 per cent by 2030, based on 2019 levels.

Last updated November 2021. New South Wales, Manufacturing, Low emissions
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