April/May 2003
Environment

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Plans For Biodiesel Plant Take Shape

The building of Australia's first commercial biodiesel plant came a step closer to reality recently, following completion of the equity raising component of the project. It is expected to be built in Dardanup, near Bunbury in Western Australia.

Australian Renewable Fuels (ARF), a wholly owned subsidiary of Amadeus Energy, announced that two investors have committed $6 MM to the project, earning them a combined 33% interest, while Amadeus will provide a further $2 MM of equity to retain a 67% interest in the project.

Amadeus Executive Director, Caroline Bentley, said investment of the funds was subject to some conditions being met, including the successful establishment of a "suitable debt facility" for the project. Bentley said the project was expected to have an annual capacity of 40 MM litres and ARF was negotiating the establishment of more facilities at other sites.

The production process will be based on the esterification of tallow – animal fats – to produce biodiesel, an alternative to diesel fuel. Alternative feed stocks that can also be converted into biodiesel included palm oil, vegetable oil, soybean and canola. Biodiesel is non-toxic, renewable and biodegradable. It has the same energy content as diesel and can be used in existing diesel engines with no modification.

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Location of the $45 MM gas power station.

$45 MM Gas Fired Power Station For South East WA

A $45 MM gas fired power station will be built in the southeast Western Australian town of Esperance to provide power for more than 6000 commercial and domestic users, more than one quarter of regional WA's customer base, outside of WA's southwest power grid.

Construction of the power station, which is being built by Esperance Power Station Pty Ltd, a subsidiary of energy company Burns and Roe Worley, will start in July. WA Energy Minister, Eric Ripper, said Western Power had entered into an 18 year power purchase agreement with Esperance Power Station Pty Ltd and also signed a related agreement promoting investment in a new wind farm.

"This is a cost-effective and environmentally friendly solution to Esperance's future power needs", Ripper said. "The gas pipeline will also open up other opportunities to replace diesel generation with gas fired generation." Construction of a 340 km gas pipeline to Kambalda to provide fuel for the station will start in May.

Ripper said it cost Western Power $50 MM a year to subsidise power supplies in regional areas off the grid. "While there will be no change to the tariff for customers as a result of this new power station, electricity will be supplied to Western Power at a lower generation cost, and at higher environmental standards, than existing diesel generators," he said.

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Food Waste Energy Plant Opened

The first food waste to energy plant in Australia, at Camellia in western Sydney, was opened on February 25th by NSW Energy Minister, Kim Yeadon.

The $36 MM facility has a full generation capacity of 3.5 MW, which can power about 3,000 homes, and has been pre-sold to NSW regional energy supplier Country Energy under a three-year deal. Yeadon said the facility is expected to realise significant long-term environmental and economic benefits for regional and metropolitan energy suppliers and the broader community.

It is owned by Earthpower Technologies Sydney, a 91% owned subsidiary of Environmental Infrastructure Limited.

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