PLANTATION Energy Australia has taken the first step in becoming the world’s largest manufacturer of bio-energy wood pellets after its Albany factory began operating last week.
Following the signing of multi-million supply deals with two European power companies in May, Plantation Energy’s $25 million pelletising plant at Down Road was officially opened by WA Forestry Minister Terry Redman on June 3.
It is the first factory of its kind in Australia producing 125,000 tonnes of carbon-clean and renewable energy pellets a year.
This is expected to be doubled in September with the commissioning of an adjoining facility.
This will be followed by 13 other production lines at five plants in Victoria and South Australia.
Joachim Behrmann, the director of the German bio-mass pelletising equipment manufacturer, Amandus Kahl, said the future looked bright for the company, with growing world demand for bio-mass fuel.
“I am optimistic that with plans for (producing) 1.5 million tonnes a year, Plantation Energy will be the biggest producer of pellets in the world,” he said.
“Europe, the USA and Japan in the future will need many millions of tonnes of biomass pellets to control the CO2 contained (released) in fuel (coal/oil). “Two kilograms of pellets replace one litre of oil.”
Mr Behrmann’s company has been manufacturing pelletising plant machinery for more than 40 years, supplying companies in 50 countries.
But none are expected to produce anything equal to Plantation Energy’s future capacity.
Amandus Kahl’s proven technology was used to ensure the pelletising process could handle the eucalyptus hardwood residue from local plantations.
Mr Behrmann said with ever-increasing oil and energy costs around the world, the biomass pellets could even change the way Australia viewed its energy needs.
The first 20 tonnes of Densified Biomass Fuel (DBF) pellets using tree plantation harvest residue were produced in a “smooth” start on Tuesday.
Mr Redman said another step in the development of the company will soon be completed, triggering a $10 million upgrade of infrastructure at Albany port to provide storage and handling facilities.
He said discussions between the port of Albany and Plantation Energy were close to be finalised, helping the growing industry that will be of benefit not only to the region but the State.
“I find it very difficult to see demand for this product diminishing in any way,” he said.
Mr Redman said by supplying wood pellets to some of Europe’s biggest power plants, Plantation Energy demonstrated the “green” credentials of Australia’s timber industry which should ensure its sustainability.
“This plant ticks all the right boxes: a new industrial sector, valuable export dollars, production of renewable energy, creating new employment for the region, finding a commercial use of low value or waste products and improving plantation viability,” Mr Redman said.
Plantation Energy managing director Dick Allen said the pelletising plant was six years in the making.
It had created 15 full-time jobs with about 40 during the construction phase.
More employment opportunities were expected through the collection of harvesting residues to produce the carbon-friendly fuel source.
Mr Allen praised timber plantation companies Great Southern, ITC and Timbercorp, which provided access to harvested plantations during the period of evaluation, and transport company, Southern Haulage for going out of their way to provide advice and equipment.