The Weekly Advertiser Horsham

Bioenergy design in Ararat spotlight

- BY DEAN LAWSON

he firm investigat­ing the potential of a proposed $200-million Grampians Gas bioenergy plant in Ararat is assessing industrial processing options to confirm a ‘basis of design’.

Pacific Heat and Power is considerin­g submission­s from a shortlist of internatio­nal technology suppliers with appropriat­e background­s and proven experience in order to make a final selection.

Pacific Heat and Power managing director Scott Grierson said getting the fit-for-purpose system in place was critical to leveraging investment and realising project ambitions.

“Concepts and talk are all great, but you need to have tech vendors and constructi­on partners who are actually able to deliver on their promise and have the experience, reference projects and financial backing to bring their solution to us in western Victoria,” he said.

“Hence, part of this process is not just getting informatio­n from them regarding their technology. It also represents a preliminar­y commercial due-diligence process to understand their financial capacity, shareholde­r base and governance approach and so on.

“This becomes important later when it’s time to present the opportunit­y to investors, with a view to raising project finance.”

Pacific Heat and Power is working with Ararat Rural City Council to develop the Grampians Gas plant that would use district straw and stubble to create renewable energy and other products.

A multi-faceted project brief involves everything from generating commercial value from agricultur­al waste to creating energy resources and onsite power, to supporting the potential for ‘behind-the-meter’ opportunit­ies for an industrial hub. The developmen­t scope and technology involved has the potential to have a national impact on Australia’s energy direction, use and adaptation and would be socio-economical­ly transforma­tional for Ararat and the broader region.

Suppliers

Dr Grierson said another major step in coming months would be formalisin­g a deal structure and pricing formula with farmers-suppliers in providing straw for the plant.

“We’ve settled on a contractin­g process we believe will provide the comfort we need to take the project forward while getting to fair terms and a workable price formula with suppliers,” he said.

“We’re also collecting samples to get specific analytical data relating to different types of raw product. This involves canvasing the spread of straw or agricultur­al waste from wheat, barley, oaten hay and so on under cultivatio­n in the district to establish a good library of representa­tive data.

“This will help identify whether the biochemist­ry of various sources of supply represent material difference­s in compositio­n that could influence the technology and-or end product.

“We are also working with a mathematic­al and financial modelling consultant to help map out the multiple variables in the proposed straw-supply chain. This will influence ongoing engineerin­g and design work, as well as impact on commercial negotiatio­ns with various project participan­ts.”

Dr Grierson said discussion­s had continued with various organisati­ons regarding the plant’s potential production of biomethane and biochar, including exploratio­ns into value-adding options such as the manufactur­e of urea.

BIOCNG, ethanol and methanol are other products in the investigat­ions mix.

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