Private NSW company, Primary Energy Pty Ltd, is pushing ahead at full speed with plans for a $180 million ethanol plant at Rockingham after gaining conditional approval from the Environmental Protection Authority this month.
Private NSW company, Primary Energy Pty Ltd, is pushing ahead at full speed with plans for a $180 million ethanol plant at Rockingham after gaining conditional approval from the Environmental Protection Authority this month.
The proposed plant will produce 160,000 million litres of ethanol a year, plus aqueous ammonia, organic fertiliser and up to 23 megawatts of electricity.
EPA chairman Wally Cox, who announced his retirement this week, said the authority considered that the proposal could be managed in an acceptable manner subject to recommended conditions being adopted.
Primary Energy founder and chief executive Matthew Kelley said the project had been through 12 months of reasonably rigorous assessment, and he had no objection to the conditions imposed by the EPA.
Mr Kelley said the company was currently finalising bid packages and was aiming to achieve financial close by early in the third quarter of 2007, about six months behind his original schedule.
In contrast to several biodiesel projects that have run into technical and financial problems, Mr Kelley believes Primary’s ethanol plant is low risk. It uses proven technology, a homogenous feedstock in the form of WA grain, and would be financially robust even if oil prices fell below current levels.
The project, which is expected to generate annual revenue of $200 million, has signed an ethanol off-take agreement with BP and plans to sell its energy to an unnamed electricity retailer.
The feedstock, comprising about 400,000 tonnes of low-grade wheat worth about $70 million a year, will be transported by conveyor from the Co-operative Bulk Handling facility located immediately to the south of the site.
The EPA said Primary had made a number of process improvements to achieve significant reductions in gaseous emissions and improvements in plant performance.
“Although the four main plant components are used in a number of other existing ethanol and fertiliser plants the proposed interlinking of processing units is new,” the EPA said.
“Therefore, a condition has been recommended that the proponent undertake an independent review of the proposed plant technology by an approved engineering consultancy to ensure that gaseous and odorous emissions will meet the performance levels required.”
Modelling has been undertaken to demonstrate that odour will not adversely affect nearby residences and other areas, including the adjacent recreation reserve.
“Predicted odour impacts will be acceptable based on the performance data provided for the biofilters,” Dr Cox said.
“However, other facilities in Perth have experienced problems with biofilter technology.
“Therefore, the proponent should be required to prepare and implement an odour management plan to ensure that odour does not adversely affect the welfare and amenity of nearby land uses.”
The plant is expected to generate employment for at least 300 people during construction and will provide full-time employment for 50 people during operation.
