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Pellet mill fuels employment hopes

Posted on May 8, 2009, 8:08am and updated on May 9, 2009 at 4:15 pm

The Mount Gambier district is poised to become a major exporter and world leader in the manufacturing of wood pellets, following a biomass fuel company securing an Australian-first multi-million dollar export deal to Europe.

The announcement of the $70m deal with a Belgian power company will be a significant boost for the South East’s $1b forestry industry as it struggles through one of the largest downturns in memory.

Perth-based company Plantation Energy Australia told The Border Watch yesterday it would submit a development application to build a $25m wood pellet mill to Grant District Council within two weeks.

The Wandilo-based plant is expected to create 15 full-time jobs, along with spin-off jobs in the transport and service industries.

According to the company, the wood pellet manufacturing facility is expected to generate $40m for the South East economy each year.

The company — which will source residue from the region’s pine and bluegum forest estates — will be the first exporter of non-commercial plantation wood pellets in Australia to Belgium’s largest power company.

These environmentally friendly pellets — made from forest residue and non commercial timber — are widely used in Europe where they are burned with coal in coal-fired power stations to reduce carbon emissions.

Plantation Energy Australia spokesman Jarrod Waring said yesterday the company aimed to break ground for the Mount Gambier plant in September/October and hoped to have it operating by March 2010.

“At this stage we plan to export the wood pellets through the Port of Portland,” said Mr Waring, who explained the wood pellet market in Europe was expected to grow significantly.

The company chief said the new European deal was an important step as the company moved to start production in the Green Triangle.

He said there were also possibilities of selling the product on the domestic market as Australia strived to reduce its carbon footprint and the wood pellets became more accepted.

But Mr Waring said this would depend on government legislation and the swing towards renewable energy sources.

He said the company aimed to produce 500,000 tonne of wood pellets per year at its Wandilo and Heywood sites and up to 60 jobs would be created at the site during the construction phase.

“We will be working very, very closely with the existing forestry industry in Australia,” Mr Waring said.

“The plant will provide new revenue for non-commercial plantation residue.”

He said the fresh industry would complement the existing forestry sector in the Green Triangle.

“There will be a direct financial benefit to the industry,” Mr Waring said.

SANDRA MORELLO

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Comments

5 Responses to “Pellet mill fuels employment hopes”

  1. gilly on May 8th, 2009 2:00 pm 1

    About time! Pellet heaters have been used in Canada, Scandanavia and Europe for decades but just caught on here. I have had one for 5 years and they are brilliant — more efficient and I dont spend my weekends cutting wood or getting ripped off by cowboy wood sellers that are found here. Howver, we have had to buy our pellets from Qld via an agent here. All it is is compressed saw dust and timber waste and we have plenty of that in our region. Bring it on and hopefully it wil cheaper than buying from qld. If it is then more people may buy these great sustainable heaters.

  2. Sharpy on May 13th, 2009 9:03 pm 2

    Are any kinds of pellet heaters available in Adelaide? Gilly where are you from.
    We are thinking of buying one but are a bit concerned about pellet supply. seems silly to burn fossil fuels to transport wood pellets from qld to sa

  3. gilly on May 14th, 2009 9:28 am 3

    Hello
    You can buy them through retravision in the Mount but I dont know in Adelaide. If you type pellet heaters australia in google you will get the website and most likely a list of sellers in the city. Supply is not an issue in terms of abundance but yes it is weird they have to be trucked down from Adelaide. I know there are some people in the state having a go at making their own and it could easily be done here with all our timber waste. Just needs someone with capital to make it happen. I guess we use fossil fuel to transport everythintg though — even sustainable products we buy at bunnings etc are trucked here. They are a great heater and I said before, I have my weekends to myself as I am not collecting wood in the elements or paying throught the nose for red gum. I am also risking bringing in termites/creepy crawlies into the house via wood.

  4. Ken Barnes on June 9th, 2009 11:05 am 4

    I sell Parkwood pellet fires as well as Enviro models and am interested in securing reliable supplies of premium grade pellet fuel.
    Parkwood fires are sold in Adelaide by Colin Peck 0411611566.
    Look in http://www.parkwoodfires.com.au

  5. Ken Barnes on October 6th, 2009 8:28 am 5

    Wood pellet fuel supplies will be further enhanced by the start up of a new mill of greater capacity by our supplier in NSW.
    The domestic market is expanding and we invite expressions of interest in the establishment of a mill in VIC to produce premium grade pellet fuel.
    We are also looking for pellet fire distributors in metro and regional areas.
    Gilly, have you contacted Colin?
    Pellet Fires Gippsland
    17 Korumburra Road Wonthaggi
    PO Box 241 Inverloch VIC 3996
    03 5672 4113 M 0403 218 830
    k.barnes5@bigpond.com

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