BOC signs $1 billion contract with Perdaman Chemicals & Fertilisers

BOC has announced that it has secured a long-term industrial gas supply contract to the value of an estimated one billion Australian dollars with Perdaman Chemicals & Fertilisers, which is planning to use clean energy technology to enrich the world’s crops with urea.

Under the contract, BOC Ltd, a member of The Linde Group, will supply nitrogen and oxygen over a 20-year period with an additional 5-year option to the Perdaman project which will transform sub-bituminous coal into urea using clean coal gasification technology.

The two BOC air separation plants will produce approximately 4800 tonnes of oxygen per day and around 7000 tonnes of nitrogen per day, more than doubling the current Australian and New Zealand total industry supply of air gases.

The Collie ASU project will take three years to complete and is expected to start construction in the third quarter of 2011 post the conclusion of Perdaman’s project financing.