Tuesday 8 July 2008

Plantation waste demand from developers

Albany & Great Southern Weekender
Thursday 19/6/2008 Page: 4

WASTE from the region's plantation industry has become a hot commodity. Two companies are now considering use of the region's expanding plantation timber industry to produce renewable energy. Long-term powerplant proponent Beacons Consulting has been joined by newcomer Pacific EnergyAustralia with plans to turn the region's plantation residue into fuel to make electricity.

After working on developing a 45Mw power station in Albany for the past five years, Beacons Consulting chairman Cliff Jones said the market was "more bullish" than ever in support of the project. Mr Jones said "green" power was recognised by the community for its benefits. Changes to government policy on renewable energy targets for new greenfield projects and increasing retail energy prices made "green" power more viable, he said.

"The green climate could not be better," he said. "We have been relying for too long on the long umbilical cords created by gas pipelines and power transmission lines reaching out into the country. "It's time to think of regional generation. You have got to have good back-up, especially in the regions." Mr Jones said this was highlighted by the fire at a natural gas plant in the State's north.

Pacific Energy Australia and Perpetual are in the final stages of establishing a $120 million 27Mw biomass power station at Neerabup near Perth. Managing director Adam Boyd said there was an obvious need for power diversification in WA. "We are looking at developing a project in the Great Southern," he said. "But it is still early.

There is quite a bit of scoping out required" On June 4, Pacific Energy entered into an exclusive 12-month biomass rights agreement with Great Southern Plantations over harvest residues. Included are rights to complete a feasibility study for the development of renewable energy projects. Mr Boyd said with such a huge risk of at least $100 million being considered, extensive community consultation and strategy considerations were required. "Before we spend such an extraordinary amount of money, we have to solve the concern of the community," he said.

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