A proposed biomass plant near Bridgetown that has attracted strong community opposition and is yet to gain environmental approval has been selected by government-owned energy retailer Synergy to supply 40 megawatts of renewable energy.
The plant's operator, Western Australian Biomass Pty Ltd, a consortium of Babcock and Brown, National Power and Carbon Solutions, was awarded the Synergy supply contract following a year-long tender process to secure up to 50MW of renewable energy.
The plant is yet to obtain the necessary environmental and regulatory approvals, and had its level of assessment upgraded by the Environmental Protection Authority to a Public Environmental Review last month.
The proposal has met with considerable community resistance, with local group, Stop the Smoke, coordinating regular lobbying activities in opposition of the plan.
The successful tenderer beat out a rival biomass proposal by SpiritWest Bioenergy Pty Ltd, which is 50 per cent owned by Perth-based Pacific Energy, at Neerabup Industrial Estate 30 kilometres north of the Perth CBD.
Synergy will also purchase 1MW of renewable energy from Waste Gas Resources Pty Ltd's landfill gas project in Wattleup.
Synergy managing director Jim Mitchell told WA Business News that the two projects chosen "were ahead of the rest of the pack" in terms of price and reliability of supply.
The biomass plant will burn plantation timber waste to generate electricity and, unlike other renewable energy sources like wind power, is able to provide baseload power.
Mr Mitchell said he was aware of community concerns surrounding the plant, and emphasised that the project must meet the environmental standards required.
He has been assured by WA Biomass Pty Ltd that the plant would be ready to start supplying electricity by the end of 2009, a requirement of the tender.
An extra 40MW of renewable energy supply into the main electricity grid will increase the amount of energy generated from renewables in the grid to 6.5 per cent by 2010, up from 1 per cent in 2001.
