Bioenergy design in Ararat spotlight
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.