Western Australia’s Avon Valley region has the potential to host a multi-million dollar bioenergy industry which could cater for markets in Europe and Japan, according to a new feasibility report.
AVONGRO Wheatbelt Tree Cropping Inc, a consortium of industry, government and community groups, undertook four case studies for the report, which examined the viability of a bioenergy industry using harvested biomass from mallee trees.
The report found the production of wood pellets could commence immediately, with potential export volumes of 10,000 tonnes per plant.
Pyrolysis, a process whereby wood is heated without oxygen and converted into bio-oil as a substitute for liquid fuel, has the potential to produce 50,000 tonnes of oil per plant, and could be operational in WA within five years.
A third alternative, converting biomass to liquid fuels, would take about 10 years to establish, and has the potential to produce 200,000 tonnes of diesel per plant.
The project would have the dual benefit of combating salinity problems in the Avon region and creating an export industry over the next five to 10 years.
Oil Mallee Company of Australia Ltd managing director Simon Dawkins said the company believed there were good export opportunities, particularly for wood pellets.
The company is already manufacturing briquettes in a pilot project with Kalannie Distillers, to be used for solid fuel heating.
Mr Dawkins said the bioenergy industry could become more viable by using grain handling facilities and rail freight networks to transport products, in a similar arrangement to the European industry.
Plantation Energy Ltd director Gavin Harper said while Japan was still an emerging market for biofuels, it had greater potential for Australia as an export market than Europe due to its location.
“As the Japanese market opens up, Australia’s natural disadvantage [in terms of distance from Europe] will swing over to become an advantage,” he said.
However, Mr Harper said the local industry needed to address some viability issues.
“The Avon Valley scheme has got a bit of work to do to ensure there is enough scale, and that onshore logistics are made economical,” he said.
