Implementing Industrial Scale Decarbonisation with Orica

Our work supported Orica to successfully register one of the largest projects in the ERF’s history.

Climate change presents a strategic risk to Orica and we have been partnering with Anthesis since 2019 on a range of GHG emissions regulatory and reporting initiatives, together with new carbon market opportunities.

The team at Anthesis helps us navigate the complexities of NGERs and the Safeguard Mechanism in Australia. We have been continually impressed with their technical expertise and diligence over the journey to date. Importantly our work together puts Orica in a strong position to both anticipate and respond to evolving climate policies and regulation. Anthesis are proving their value as we implement our Kooragang Island Decarbonisation Project, deploying new low-emissions technology and capturing opportunities presented by being on the supply-side of Australia’s carbon market. The project is set to deliver a cumulative emissions reduction of 4.7 MtCO2e by 2030 based on forecast production.

Anthesis are a credible, trusted and experienced advisor that has helped Orica turn our ideas into industrial scale emissions reduction.

Troy Powell, Orica Head of Sustainability

Industrial Scale Decarbonisation

Image credit: Orica – Kooragang Island

Orica is the world’s largest provider of commercial explosives and innovative blasting systems to the mining, quarrying, oil and gas and construction markets, a leading supplier of sodium cyanide for gold extraction, and a specialist provider of ground support services in mining and tunnelling.

To meet its target to reduce emissions by 40% by 2030, Orica undertook a large Emissions Reduction Fund (ERF) (now the Australian Carbon Credit Unit scheme) project at its Kooragang Island Facility. Located in the Hunter Valley and an integral part of the company’s global operations.

In early 2020, Orica engaged Anthesis (formerly Ndevr Environmental) to complete a detailed due diligence on the project. We developed comprehensive Forward Abatement (FAE) estimates in accordance with the Facilities Method and following due diligence, also supported Orica with Project registration and auction support.

Key to the project’s success was the systematic, evidence-based approach. Our analysis was based on a deep understanding of the National Greenhouse Energy Reporting (NGER) scheme and ERF/Safeguard Mechanism framework. We applied that understanding to the available information on the abatement technology and a range of considerations around risk and consideration.

This work led to Orica’s announcement in 2021 of plans to install an Australian industry-first tertiary catalyst abatement technology, EnviNOx® at its Kooragang Island manufacturing plant. The technology is designed to deliver up to 95 percent abatement efficiency, reducing the site’s total greenhouse gas emissions by almost 50 per cent in partnership with the NSW Department of Planning, Industry and Environment and the Clean Energy Finance Corporation.

Our work supported Orica to successfully register the project with the ERF – one of the largest projects in the ERF’s history. It is forecast to deliver industrial emissions reductions at scale in the nature of 500K+ tCO2e per year and deliver a cumulative emissions reduction of at least 4.7 MtCO2e by 2030 based on forecast production.

With this successful foundation, Orica will be able to significantly reduce its emissions profile, and in a traditionally hard-to-abate sector it’s great to see collaboration accelerate the pathway towards industrial decarbonisation and significant emissions reductions.

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Image credit: Orica