Recovery looks like this. Immediate, real-world impacts of supporting Australia’s clean future industries. To accompany Bioenergy Australia’s recent proposal for a series of economic stimulus measures for clean energy and bio industries, we have gathered a sample of real-world projects to highlight prospective impacts of stimulus measures. These projects, identified by our members, are all shovel ready and can be quickly deployed under the right conditions.
Transcript
Recovery looks like this.
Immediate, real-world impacts of supporting Australia’s clean future industries.
To accompany Bioenergy Australia’s recent proposal for a series of economic stimulus measures for clean energy and bio industries, we have gathered a sample of real-world projects to highlight prospective impacts of stimulus measures. These projects, identified by our members, are all shovel ready and can be quickly deployed under the right conditions.
Queensland Glycell Biorefinery stage 1 The project: 100,000 dry tonne per year biomass input Estimated capital ~AUD$200 million
Impact of stimulus: Support second generation technologies and provide momentum and funding to get the project progressed.
Anticipated outcomes: » 60 direct plus 264 indirect jobs
» GHG advantaged carbohydrate feedstocks for advance biofuels and/or chemicals. This leads to emissions reduction and valorisation of agricultural biomass streams not available today.
60 direct plus 264 indirect jobs
Mt Alexander Bioenergy, community bioenergy project, VIC The project: 1MWe (biogas) and 6MWt (biomass) with capital cost of approx. $20m. This project embraces a circular economy approach with closed loop and zero waste design principles. It is a behind-the-meter project for a large regional food processing facility (Dons) that employs around 1600 people.
Impact of stimulus: Financial stimulus would get this project up and running. The biggest barrier to projects of this nature seeing the light of day is being able to bridge the pre-financial close gap. Community initiatives such as this have tremendous value however communities have no balance sheet and need seed capital to do the up-front development work (feasibility study, business case, regulatory approvals, engineering design and construct and seeking investor financing). The independently commissioned business case is very robust (ROI ~16%) and a signed Terms Sheet (with George Weston Foods [at Dons Smallgoods manufacturing facility, Castlemaine]), which includes a power purchase agreement and waste supplier off take agreement. This is an exemplar project in every sense albeit without the bridging funds to complete the regulatory approval stage and EPC tendering and design work, the project is at risk. The proposed stimulus measures would have a tremendously positive impact and help get this project underway.
Anticipated outcomes: » Approximately 22-30 jobs created for stage 1.
» Annual emission reduction is 88,000 tCO2e (based on ARENA LCA methodology) for stage 1 and increasing proportionately as stage 2 and 3 develop.
» Boosting regional economy, environmental outcomes through reduced waste to landfill, upskilling of staff, energy security and demonstrating how circular economy principles can be embodied and delivered via a closed loop model.
Approx 22-30 jobs created
Energy from Waste Commercial Demonstration Plant – Moving Injection Horizontal Gasification (MIHG) The project: 4,000 tpa C&D waste, producing 400kWe gross electricity; circa 360 kWe net. A pioneering small-scale waste to energy project using Australian owned and invented MIHG technology, developed in Queensland and proven in pilot plant. Technology has been developed specifically for regional centres and outer urban localities which do not produce sufficient waste for conventional waste to energy technologies, and can process a wide range of waste types, including C&D, C&I, MSW and biosolids. Project is platform for further expansion to circa 50,000 tpa and is flexible enough to produce hydrogen.
Impact of stimulus: Project financing would get project off the ground. Proposed targets would support take up. Opportunity to export technology globally, once MIHG commercial demonstration project is in operation.
Anticipated outcomes: » Creation of 20 construction jobs and approximately 9 ongoing operational jobs.
» 4,000 tpa of C&D waste diverted from landfill and circa 4,000 tpa of CO2eq emissions avoided from landfill.
» Dispatchable, baseload electricity. Production of 2,560,000 kWh/yr of renewable electricity, enough to power 500 homes.
» Opportunity for >300 similar plants around Australia, processing 8 mtpa of waste (C&I, MSW, agriculture, forestry and livestock wastes, biosolids & greenwaste), producing circa 800 MWe of dispatchable electricity and generating revenues of over $1 billion/yr.
» Further potential to produce renewable hydrogen for use in transport and in natural gas grid at prices already competitive with solar and electrolysis.
Dispatchable, baseload
renewable electricity of
2,560,000 kWh/yr
Biomass supply chain project The project: Focussing on immediate market opportunities to link current forest management residue to energy production demands in Queensland through the development of a sustainable biomass supply chains required for immediate and sustained regional development in bioenergy and biobased product industries.
Impact of stimulus: Financial stimulus would allow development and deployment of efficient, sustainable and profitable biomass supply chains from private forest thinning and management activities.
Anticipated outcomes: » Jobs:
• Direct new supply chains jobs (year 0 to 3) – 75 to 200
• Direct end user jobs energy plant (year 0 to 3) – 15 to 30
• Indirect jobs in the region (year 0 to 3) – 400 to 600
• Long term retained industry (forest products and renewable energy) – 500+
• Speculative future new biobased product industries – 200+
» Convert 50+ tonnes per hectare of wood waste to biomass for bioenergy and bioproducts
» Replace up to 500GW of coal fired electricity generation with renewable bioenergy production
» Regional economic development with new biomass supply chain industries from current waste and establishment of resource supply for emerging innovative biobased product industries in regional Queensland
» Increased regional activity around renewable energy production through existing infrastructure
» Improved sustainable future for the Queensland hardwood sawmill industry
Convert 50+ tonnes per hectare of
wood waste to biomass for bioenergy and
bioproducts
Hunter Energy, Redbank Power Station, NSW The project: Hunter Energy is converting the 151MW Redbank Power Station to operate on 100% biomass as the cornerstone to the Redbank Green Energy Park. Redbank plans to operate on waste biomass from recycling plants and forests both of which are eligible fuels under the Renewable Energy Act. Producing on average 1 Million MW hours per year, when fully operational Redbank will supply power to approximately 200- 250,000 homes.
Impact of stimulus: The power station, which is in care and maintenance, is shovel ready. Financial investment in the form of grants or a loan is required to get the project off the ground.
Anticipated outcomes: » We will create 250-300 immediate jobs, which could lead to a
further 800 jobs in the biomass supply chain.
250-300 immediate jobs
Anaerobic digester projectsThe project: 77,000 GJ of biogas which will be converted to 11,000 MWh of electricity from 15,000 tonnes of secured feedstock. We also have over 100 tonnes of recoverable phosphorus and 86 tonnes of potassium.
Impact of stimulus: Stimulus would provide the right signal for us to develop a runway of projects up to an investment amount of over $100M. This would account for approximately 25 projects in Victoria using waste streams that are currently unregulated.
Anticipated outcomes: » Jobs: 10 consultants for regulatory approvals and detailed design
works for civil and structural features.
» Individual projects will employ 10 full time construction workers to perform civil, structural, mechanical and electrical works and once commissioned we will have three full time workers. If we can develop projects concurrently with the amount of finance available, we are looking at a multiplier in the number of jobs we can create.
» The area of dairy pasture that can utilise that amount of nutrient is over 5,000 hectares. Our project site is adjacent to a major poultry and dairy farming area in Gippsland with a 38,000 ha irrigation scheme. We are not removing jobs within the agricultural sector by recycling nutrients, we are transitioning to a more skilled workforce that have a more direct understanding of their products they are managing.
Scalable project
Altus Pellet Mill, Millicent, SA The project: $70m - $80m, biomass energy conversion project.
Impact of stimulus: Fastrack project/project viability. This is a world-class harvesting residue to pellet project, bringing additional jobs to the SW corner of South Australia and redefining the renewable energy economy in that part of the world. This project is establishing long-term jobs in the renewable energy sector that will have impacts well beyond Australia itself by exporting 300,000t/year of wood pellets for industry overseas.
Anticipated outcomes: » Direct employees, 30 – 40 + the transportation, harvesting and
logistical staff, so all up around 100 - 120.
» 55,000tons/year of CO2e offset just through their own energy consumption, an additional 200,000t/CO2e offset through the export of their material.
30 - 40 direct jobs
Saputo, Smithton, TAS The project: $9m, biomass energy conversion project.
Impact of stimulus: Fastrack project/project viability. Increasing the profitability, viability and sustainability of a large export-orientated food manufacturer located in a Regional part of Tasmania.
Anticipated outcomes: » Direct employees = 40 – 50.
» 10,000t/year of CO2e offset.
40 - 50 direct jobs
Cargill Oilseeds, Kooragang Island, NSW The project: $7m - $8m, biomass energy conversion project.
Impact of stimulus: Fastrack project/project viability. Cargill’s operations are very well suited to transferring from using natural gas to using biomass, and they are looking to use this facility as a demonstration project for moving multiple sites over to biomass energy.
Anticipated outcomes: » Direct employees = 35 on that site, many dozens more on other sites
and then following through the chain back to the farmers growing the grain.
35 direct jobs
Tyre Derived Asphalt The project: Replicable 20,000 tonne per year (5,000,000 passenger equivalent tyres) of passenger, commercial and mining tyres processed back to oil, steel and carbon char to provide heat, power and feedstock for collocated asphalt manufacturing in regional areas ~ AUD $25 million.
Impact of stimulus: Fastrack deployment of first two plants and associated regional job creation. These projects are already in development and will create commercially viable processing of used tyres and contribute to Australia’s commitment to end the export of used tyres.
Anticipated outcomes: » The tyre processing plant will create 25-30 jobs and the collocated
asphalt plant will create 40 direct jobs.
» The tyre processing plants are manufactured in Australia creating skilled jobs and apprenticeships.
» Indirect jobs will be created for regional tyre collection operators with potential for backloads of mining tyres creating additional income for regional logistics firms.
Creating skilled jobs and
apprenticeships
Biodiesel Process Technology Upgrade, BIA - Rutherford NSW The project: $6.5M-$7.5M biodiesel plant process upgrade. Replace traditional catalyst based transesterification technology with supercritical technology.
Impact of stimulus: Reinvigorate an existing industry by providing shareholders and investors with confidence to invest in existing and new biodiesel production capacity. Support investment and development in locally manufactured 2nd generation technology.
Anticipated outcomes: » Improve cost competitiveness of biodiesel with respect to diesel
facilitating a fifty to seventy percent increase in production and capacity utilisation at BIA’s Rutherford facility.
» Eliminate the use of high cost, imported sodium or potassium methylate catalyst
» Increased biodiesel yield
» Provide capability to process new feedstocks and waste streams such as grease trap waste, fatty acid distillate and high free fatty acid animal fats
CLEAN Biomass to energy project, Cowra, NSW The project: This new development at Cowra Energy Centre is a 2MWt anaerobic digestion facility with a stage one capital cost of $22 million. This unique project has been designed as a regional bioenergy solution, forming the centrepiece of a new agri-industry cluster.
Local organic waste resources are converted to generate decentralised energy, using proven technology, servicing the energy and commodity requirements for local industry, business and council. The solution focuses on how this circular economic model is deployed in a local context, and delivers new growth, job opportunities, dispatchable power supply and security, in addition to significant environmental and social benefits to regional communities. CLEAN has established a strategic matrix for a staged-approach to implement the project development and has achieved a number of milestones:
• Acquired 5ha of land as part of the subdivision created for the project.
• Completed a feasibility for local distribution network via embedded microgrid.
• Completed a Request for Proposal from EPC technology vendors.
• Established demand requirements for 4 cornerstone customers
• Developed a community enterprise structure to benefit from project outcome.
Impact of stimulus: With limited resources, CLEAN has been able to facilitate the project development to date. CLEAN Core Development has been established to move the project to investment-ready status. The number of contractual agreements have been scoped for supply & off-take to be formalised, including network connection enquiries. Financial stimulus to support the late stage development of this project will enable CLEAN to complete these tasks to meet investment readiness.
Anticipated outcomes: » Local jobs: 1 FTE per 1 GWhr for stage one
» Local energy generation distributed: 5,8 GWhr/yr thermal & electrical
» Local commodities & utilities: 5.9 kilotonnes of bio-based fertilisers
» Local emissions reduction: 71.8 kilotonnes C02eq/annum
» Local circular economy enhanced: > $ 5 mill. initial revenue supporting local industry & community
Local circular economy
enhanced: > $ 5 mill. initial
revenue supporting
local industry & community
Project A (commercial in confidence) The project: $50m, biogas to generation / biomethane to mains. Able to commence in June 2020.
Impact of stimulus: Fast track project through infrastructure grant directed towards biomethane upgrade plant and connection of green gas to mains. Possibly also applied to interim (10 year) subsidy of biomethane offtake.
Anticipated outcomes: » 20 direct construction jobs, 100 indirect
construction jobs
» 7 direct operations jobs, 30 indirect operations jobs
27 direct plus 130
indirect jobs
Project B (commercial in confidence) The project: $15m, biogas to generation / biomethane to mains. Able to commence in July 2020.
Impact of stimulus: Fast track project through infrastructure grant directed towards biomethane upgrade plant and connection of green gas to mains. Possibly also applied to interim (10 year) subsidy of biomethane offtake.
Anticipated outcomes: » 10 direct construction jobs, 30 indirect
construction jobs
» 4 direct operations jobs, 20 indirect operations jobs
14 direct plus 50
indirect jobs
Project C (commercial in confidence) The project: Municipal wastewater treatment + food waste. $12M construction project.
Impact of stimulus: Stimulus would support business case and investment decision by board.
Anticipated outcomes: » 20-30 construction jobs for 6 months
» 4-5 FTE job creation
» 50,000t/yr of waste diverted from compost/ landfill to energy production
4-5 job creation
Project D (commercial in confidence) The project: Pulp and paper industry, biogas project. $10-$20M construction.
Impact of stimulus: Stimulus would support business case and investment decision by board.
Anticipated outcomes: » 30 construction jobs for 6 months
» 2 FTE job creation
» Reduction in natural gas use
» 800,000t/yr of landfill avoidance
800,000t/yr of landfill
avoidance
Project E (commercial in confidence) The project: This waste-to-energy project will use around 16,000t of processed C&D and C&I waste p.a. (‘Processed Engineered Fuel’) to fire a 9.2MWth embedded industrial boiler that will supply steam to a canola crushing plant on a ‘tolling’ basis. Around 400kWe will also be produced with the solution having the benefit of demonstrating the use of this type of fuel in an advanced combustion plant in Australia for the first time.
Impact of stimulus: Active demonstration of an outsourced, ‘build, own, operate’ model for delivery of a waste-to-energy project, that is ultimately able to save the client OPEX and help them to remain globally competitive with their product over the long time, thereby preserving regional jobs and investment.
Anticipated outcomes: » $14m investment into the NSW Riverina region will create substantial jobs for local
construction contractors during establishment.
» Save the client an anticipated 28% on their energy bill and remove energy price volatility altogether
» Combination of displacing fossil fuel and avoiding landfill is able to deliver a 113% reduction in GHG footprint compared to use of natural gas. The project also seeks to demonstrate an innovative commercial model for delivery of such assets, using an Environmental Upgrade Agreement mechanism to provide project competitively priced debt spread over a 20 year period.
$14m investment into the NSW Riverina region
will create substantial jobs
Project F (commercial in confidence) The project: Located in a grid-constrained town in western Victoria’s wheat belt, an innovative ‘industrial ecology’ project will use proven gasification technology from overseas to underpin a new industrial precinct that will attract new business investment and create substantial direct and indirect jobs, while adding $26m p.a. to local farm incomes within a ~80km radius of the facility. The project, currently estimated at $175m, will deliver 60MWth (as steam and hot water) and 24MWe, exporting to the grid and supporting embedded industrial clients on a “behind the meter” basis. This will save them considerably in operating costs over the long term, while producing 4,800t of green hydrogen, 36,000t of biochar and around 3,000t of ‘wood vinegar’ p.a. for augmentation of a new fertiliser plant. The project will also help to strengthen the local electricity network, reducing the curtailment of local wind and solar PV assets by providing much needed ‘firmed’ capacity and avoiding costly network upgrades. The fuel used will be an aggregation of 300,000t of wheat straw stubble from local farms that is otherwise traditionally torched where it stands, delivered using an innovative mobile pelleting model. A proportion of non-cash equity in the project will be allocated to a local Trust, allowing project dividends to be distributed to support innovation and causes of interest to the local community.
Impact of stimulus: This is a bold project that will make use of agricultural waste in an Australian-first, delivering all of the regional benefits of a biomass-oriented combined heat and power plant. Stimulus will help to support the bankable feasibility phase of activity for this important project, which includes detailed engineering and design, development application, supply chain optimisation and fuel aggregation, stakeholder engagement, project financing and tendering.
Anticipated outcomes: » The project will generate an estimated 324.9 GWh/p.a. (electricity) and is capable of delivering
1.62 PJ/p.a. (heat), in addition to valuable co-products.
» Direct ongoing jobs (plant only) will include ~30 FTEs, with 20-25 FTEs supply chain (fuel aggregation) jobs. It will actively demonstrate a large scale, wheat-straw fired project in Australia for the first time, proving up a highly replicable model in the domestic market.
» It will also show an alternative pathway for production of competitively priced green hydrogen that is scalable and achievable today, using known technology.
It will also show an alternative
pathway for production of competitively
priced green hydrogen that is scalable and
achievable today, using
known technology
Project G (commercial in confidence) The project: Food and beverage manufacturer with anaerobic digester biogas already. Project to upgrade the biogas to renewable gas and inject to the natural gas grid.
Impact of stimulus: The stimulus measures would enable the development of this project with technology that is fully proven and operating in Europe and the USA. The technology will deliver renewable gas and begin to create the demand for renewable gas in Australia.
» This site is currently combusting 100% of the generated biogas. The project would prove the technology for this industry in Australia and will deliver savings of more than 25,000tCO2e per annum
The project would prove
the technology for this
industry in Australia and
will deliver savings of more than
25,000tCO2e per annum
Project H (commercial in confidence) The project: Covering waste water treatment lagoons for the red meat processing sector with biogas to boiler. Multiple projects are virtually approved.
Impact of stimulus: The projects will be supported by the stimulus measures by enabling the internal CAPEX hurdle rates to be achieved in this very important sector for the Australian economy.
» The onsite treatment of waste-water by red meat processors is a mandated requirement. The treatment process creates biogas which can be captured and efficiently delivered to the boiler (present at every site), to replace significant GJ of natural gas. The savings equate to over 26,000tCO2 per annum.
Project I (commercial in confidence) The project: Small scale biodigester with dairy and poultry manure. Energy storage solution or behind the meter.
Impact of stimulus: The stimulus measures would enable the development of this project with technology that is fully proven and operating in Europe and the USA. The technology provides the opportunity to develop biogas a battery to support renewables in rural areas.
» Australia exports more than 60% of its agricultural output and this creates significant residues. These residues can be 100% direct from source which removes potential for non-organic contamination. Rural areas have significant weather dependant renewables which require batteries to maximise their effectiveness. Bioenergy solutions can deliver battery type solutions at 2/3 of the price of an equivalent lithium-ion battery as well as providing soil conditioner demanded by agriculture.
Bioenergy solutions can
deliver battery type solutions
at 2/3 of the price of an equivalent lithium-ion
battery as well as providing
soil conditioner demanded by
agriculture.
Want more? This is just a small sample of projects ready to launch, with the right support. We invite you to use our association as an informed resource; we have much to contribute in this space and look forward to working with you to support Australia’s clean recovery from the economic impacts of COVID-19.
