Presented by David Hurburgh

BioEnergy 2015 Conference

Launceston – 30 November 2015

Department of State Growth

Tasmania Bioenergy

Developments & Opportunities

BioEnergy in Tasmania Developments & Opportunities

Topics to be Covered (a) • 15 Tasmanian themed papers at BioEnergy 2015

• A Tasmanian Snapshot

• Tasmania’s Energy Equation – Production vs

Consumption

• Forest Residue based bioenergy is the prime

opportunity

• CEFC BioEnergy Fund very positive news

BioEnergy in Tasmania Developments & Opportunities

Topics to be Covered (b)

• Niche Opportunities

• The Key Messages ?

o The Resources are Available and

Accessible

o The Technology is Mature with

Positive Project Economics

A Tasmanian Snapshot

• Population – 500,000 - just 2% of Australia

• Land Mass – 91,000 km2 - just 1.3 % of Australia

• Forest Cover – 50% of land mass - and 50% of this is in

Conservation Areas

• Hydro Tasmania produces 25+% of Australian

Renewable’s Electricity

• “Green Branding” is an important part of State’s

identity, especially for Tourism and AgriBiz

• BioEnergy could enhance this brand

Forest Resources

• >50% of landmass

now in

conservation

reserves

• >50% of

commercial forest

is now in private

hands

Forests , &

Wood

Residue

Potential

Tasmanian Energy Consumption 2013-14 Total 101 PetaJoules

Source: Department of Industry and Science, Australian Energy Statistics 2015.

Tasmanian Energy Consumption 2013-14

Energy Type Source Units Conversion Factor

PJ Notional Wholesale Value Units $ Million

Energy Consumed Hydro +/- BassLink

10,000 Gwh

1Gwh=0.36PJ

36 $50/MWh 500

Imported Liquid Fuels

Petrol & Diesel 1 Billion litres

37MJ/L 37 $1 /L 1000

Natural Gas Victorian Pipeline 7 PJ 7 $10/GJ 70

Coal Fingal Mines 500,000 t 30GJ/t 15 $75/t 38

Wood Domestic Heat 400,000 t 16GJ/t 6 $100/t 40

TOTAL 101 $1.7 Billion

Key

Electricity

Transport fuel

Thermal Energy

Tasmanian Energy Equation

(1)

• How do we use our 100 PJ of energy each year?

• An Equal Three–Way Split

o Electricity 1/3rd

o Transport Fuels 1/3rd

o Thermal 1/3rd

• Transport Fuels – mostly imported – some

LNG/CNG/LPG

• Scope for liquid biofuels – but some commercial

barriers and technical to uptake

Tasmanian Energy Equation

(2)

• Thermal Energy Sector - Wood, Coal &

Gas

o BioEnergy offering Growth and

Substitution Opportunities

o CHP- CoGen – not Grid Electricity

• For coal & gas, important to distinguish

energy applications from other uses e.g.

cement, metallurgical and chemical

manufacturing,

Forest Residues Studies

(1)

• Looking for “value-add” opportunities – beyond the

export woodchip market

• Indufor Study – commissioned in 2013 - part of

Tasmanian Forests Agreement (TFA)

• Enecon – subcontracted to do BioEnergy component of

study

• Bioenergy possibilities recognised as a key sector for

investigation

Forest Residues Studies

(2)

• Indufor Report close to finalisation

• Findings to be reported at BioEnergy 2015

o CHP & Export Wood Pellet markets identified

as priorities

o Positive Economics are indicated

o “Drop-In” biofuels a longer term possibility

• “Southern Residues” EOI Process in progress –

driven by export logistics constraints

• Programs of support will emerge for BioEnergy

Initiatives

• Small to medium scale – using < 10,000 tpa fuel per

enterprise

• Briquetting, chipping or hogging of residues – for

industrial process heat in boilers

• Use the 5% of “pin-chips” screened from export chips

• Market for Wood Pellets for domestic heating on

expansion path

• Small-scale ( <100 kw ) boilers for hot water and space

heating in commercial premises – Regional Hospitals,

Swimming Pools and SMEs

Niche BioEnergy Opportunities (1)

• Agricultural processing residues and woody

weeds

• Biochar may enhance pastures being converted

by irrigation

• Biochar emerging with a remedial role for dairy

effluent

• Special chars – activated carbon, premium BBQ

fuels etc.

• Projects attracting community support and

engagement

Niche BioEnergy Opportunities (2)

Carbon Neutral Bricks

Carbon Neutral Bricks from Biomass (1)

• Austral Bricks – Longford

• 1.5 million bricks per year

• Australia’s first “Carbon Neutral” bricks

• Certified by Australian Government

• Supply chain showing wood residues are

from sustainable sources

Carbon Neutral Bricks from Biomass (2)

• 10,000 tpa of hardwood sawmill residues

• Residue is milled and dried to dust

• Wood provides 90% of energy needs

• Kiln runs at 1,200 degrees Celsius

• Gas used for “makeup” heat at cool front-end of kiln

• Gas use is 10% but represents 30% of energy bill

• Bricks being exported to Japan, Korea and New Zealand

Carbon Neutral Bricks from Biomass (3)

•

Flower Power

Flower Power

Pyrethrum Marc Briquettes

Waste Water Treatment Plants (WWTP)

& Anaerobic Digesters (AD)

(1)

• TasWater – Tasmania’s Water & Sewerage Authority -

needs to protect its assets and guarantee performance

• EPA monitors TasWater’s outfall – impact of “load” from

upstream

• TasWater lifting “Trade Waste Charges” (TWC) to cover

capital and operating costs

• TasWater offerring TWC “holidays” if industries

improve their on-site pre-treatment plants

• These holidays from the notional increase in TWC

provide an economic incentive for industries to install

new plant

Waste Water Treatment Plants (WWTP)

& Anaerobic Digesters (AD)

(2)

• Tasmanian has large food processing sector e.g.

dairy, meat, breweries

• Anaerobic Digesters becoming key component of

WWTPs

• Biogas from ADs is supplementing energy bought

in for processing

• Creating Value from problematic and costly waste

streams

Cascade Brewery

Biogas from Effluent (3)

• All waste water is captured and retreated

• Project was driven by strict limits on discharges and

faced with high “Trade Waste” disposal costs

• Major Investment in a Waterleau treatment facility

• Anaerobic digestion of waste stream now producing

biogas

• Displacing 20% of their natural gas usage & major

environmental benefits

• “Clean Green” branding benefits. Lessens load on Infra

Eco-Industrial Parks

(3)

• Clustering of Energy Users & Biomass Residue Sources

o Hubs with Logistics and services

• CHP/CoGen using Biomass

o +ve Economics compared to Natural Gas

• Steam for Industrial Processes & Electricity within Park

• Centralised Energy Provision on “over the fence” basis

using BOOT model

• Optimise & Balance CHP Load among users & providers

of energy

CEFC – Media Release

26 November 2015

Presented by David Hurburgh

BioEnergy 2015 Conference

Launceston – 30 November 2015

Department of State Growth

Tasmania Bioenergy

Developments & Opportunities