South Australia’s peak environment body has asked corporate regulators to investigate whether shareholders and consumers have been misled over the green credentials of a proposed fertiliser project in the state's north.
NeuRizer plans to deliver nitrogen-based fertiliser to local and export agriculture markets from a plant at Leigh Creek, about 550km north of Adelaide.
Information on its website said it was a certified carbon-neutral organisation and the project was "carbon neutral by design".
It said the plant, slated to begin operations in 2025, would significantly increase Australia’s sovereign manufacturing capability for urea fertiliser supporting agricultural food production.
But the Conservation Council of South Australia said NeuRizer was proposing to operate an underground coal gasification facility and fertiliser factory on the site of an open-cut coal mine decommissioned in 2015.
Chief Executive Craig Wilkins said SA was a global leader in the transition to clean, renewable energy and did not need a new coal project based on risky technology.
“There is no room in our state for any new industrial projects with large carbon and methane impacts," he said.
Through its lawyer, the Environmental Defenders Office, the council has asked the Australian Securities and Investments Commission to determine if there have been breaches of the Corporations Act or Australian Consumer Law.
EDO managing lawyer Kirsty Ruddock said any false claims on climate credentials could offer a competitive advantage.
“We believe the complaint lodged by the Conservation Council of South Australia aligns closely with the ASIC’s desire to ensure companies adhere to certain standards when making claims about their environmental performance and impact," she said.
NeuRizer executive chairman Justyn Peters told news site Indaily the company rejected the conservation council’s claims and welcomed an investigation.
“We find the allegation we are ‘greenwashing’ made by the Environmental Defenders Office on behalf of the Conservation Council of SA both offensive and factually incorrect,” he said.
In a video presentation to shareholders posted online last month, Mr Peters also reaffirmed the project was on track.
He said the company's major investors continued to have faith in its plans and negotiations with a potential strategic partner were continuing.
"We believe. We know where we're going and we know the progress we're making," Mr Peters said in the video.
