Leigh Creek Energy appoints PwC to manage debt financing for urea project of same name

Leigh Creek Energy will use an initial BFS on its urea operation, which is expected in the current quarter to allow financiers to progress due diligence programs.

Emerging producer Leigh Creek Energy (ASX: LCK) has appointed PriceWaterhouseCoopers (PwC) as strategic debt advisor for the development of its carbon-neutral urea manufacturing plant in South Australia.

PwC will provide advice on securing project financing, from selecting a suitable investment bank through to final settlement.

Leigh Creek expects the financing round to align with the publication of a first Bankable Feasibility Study (BFS) before the end of the current quarter.

The study will be refined during the remaining FEED period and updated to produce a final version before the end of the year.

It is expected that the initial BFS will present a sufficiently compelling case for the project and allow banks to progress their due diligence programs pending the final study.

Add confidence

Leigh Creek chief executive Phil Staveley said PwC’s appointment would boost confidence in the significance of the flagship project.

“The addition of PwC to our team of world-class consultants and contractors reflects the size and quality of the underlying project,” he said.

“We believe this will build confidence among our investors and stakeholders that this project is moving rapidly towards construction.”

Inexpensive, high quality

The Leigh Creek Urea Project will develop low-cost, high-quality nitrogen-based fertilizers for local and export agricultural markets using proprietary syngas (syngas) technology.

Located 550 kilometers north of Adelaide, it will initially produce 1 million tonnes per year of urea, with the potential to double capacity.

This week, Leigh Creek received certification from the Australian Government’s Climate Active initiative for the carbon neutral status of its urea development, achieved during the pre-production period by purchasing offsets from accredited international projects. of carbon production.

Once in operation, the project will be inherently carbon neutral as most of the carbon dioxide it produces will be used in the production of urea and any excess will be sequestered.

Long term opportunities

The Leigh Creek Urea Project will be one of the largest infrastructure developments of its type in Australia, providing long-term economic development and employment opportunities for communities in the Upper Spencer Gulf and northern regions of the Flinders Ranges and for the State as a whole.

It will be the only fully integrated urea production facility in Australia, with all inputs for low carbon urea production contained on-site.

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