Coal to Urea Project
From Coal to Crop: Securing Australia's Fertiliser Future
CDD Australia is proposing and lobbying the West Australian Government to develop a>A$1 Billion coal (and biomass) to urea manufacturing facility in Collie, Western Australia — turning a stranding coal resource into a durable, lower-emission industrial future for the region.
The Opportunity
Collie's coal mining and power precinct is entering a structural transition. As the state's coal-fired power stations retire between now and 2029, the mines that have supplied them for generations face a collapsing customer base. At the same time, Australia imports approximately 95–96% of the urea fertiliser its farmers depend on, leaving the agricultural sector exposed to volatile international pricing and shipping disruption.
CDD Australia's proposal connects these two problems to one solution: redirect Collie coal away from combustion and into the manufacture of prilled urea fertiliser — a higher-value, lower-emission use for a resource the region already has, at a time the region needs it most.
What We're Proposing
A facility processing 2.0 million tonnes per annum of feedstock — 70% Collie coal blended with 30% locally sourced plantation-forest biomass — producing an estimated 0.91 to 1.11 million tonnes of prilled urea a year. The biomass blend is deliberately set at the upper end of what's technically proven (Collie's Muja Power Station already runs WA's largest coal/biomass co-firing operation), reducing the facility's carbon footprint and strengthening its case under WA's decarbonisation framework.
Why It Matters for Collie and WA
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Jobs, not just transition: The project is estimated to sustain several hundred direct mining, plant operations and maintenance roles — precisely the kind of skilled, shift-based industrial employment the region's mining and power workforce already holds, at a time many of those roles are otherwise at risk.
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A ready customer for Collie coal: At full scale, the project's coal demand represents a substantial share of a local mine's current annual output — a concrete commercial lifeline for an industry facing the loss of its traditional power-station customers.
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National fertiliser security: A domestic urea facility gives Australian farmers a homegrown alternative to imported fertiliser, insulating the agricultural sector from the price and supply shocks of global markets.
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A lower-carbon design from day one: Blending biomass with coal, integrating carbon capture readiness, and drawing on a proposed plantation estate for feedstock and carbon credits are all built into the project's foundations, not added as an afterthought.
Learning From What Came Before
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CDD Australia's proposal is built with the lessons of the original Collie Urea Project front of mind — the precedent that secured environmental approval at Collie before ultimately relocating to a gas feedstock at the Burrup Peninsula. We've designed this project to confront those same challenges — coal price security, carbon storage, water supply — directly and transparently, rather than assume them away.
Where the Project Stands Today
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This is a development-stage proposal, not a construction-ready one — and we think that honesty matters. CDD Australia is seeking WA Government partnership to fund a Front-End Engineering Design (FEED) study and Public Environmental Review, so the project's feasibility can be tested on a fully costed, transparent basis before any capital commitment is sought. We've engaged independent technical due diligence on our own proposal, and we're building the project openly around what that review finds — because a fertiliser security project for Western Australia only matters if it's built to last.