Australian Fertilizer Corporation (AFC) has secured offtake agreements to the tune of more than $2.4 billion for urea to be produced at a planned $450 million plant in Gladstone.

The agreements cover AFC’s planned annual production capacity of 220,000 metric tonnes of technical-grade urea per annum for an initial term of 10 years, with options to extend for a further 10 years.

The project is expected to create about 800 jobs during construction and 50 permanent operational roles once commissioned.

“AFC’s off-take agreements represent a major commercial milestone for the company and demonstrate strong market demand for Australian-made technical-grade urea,” AFC chief executive officer Stein C. Haugan said.

“Securing long-term commitments for 100 per cent of planned production significantly strengthens the commercial foundations of the Gladstone project, brings a new industry to Gladstone and demonstrates that Australia can once again manufacture world-class urea domestically, reducing reliance on imports while supporting local jobs, industry and farmers.

“These agreements position Gladstone within critical agricultural and vehicle emissions reduction supply chains while supporting sovereign manufacturing capability, supply chain resilience, regional employment and long-term industrial development in Queensland and Australia.

“At its core, this project is about strengthening Australia’s food security. Every tonne of urea produced in Gladstone is a tonne that does not need to be imported.”

AFC plans to showcase a new approach to Australian manufacturing by transforming underutilised carbon resources, including mining by-products, end-of-life tyres, biomass and municipal materials, into fertiliser products.