©Shutterstock / view across Latrobe Valley
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A bioenergy project in Victoria, Australia, has moved from concept to development phase and will now assess key commercial factors to support a final investment decision.
Under the master services agreement involving Paper Australia (part of Opal group) and Delorean Corporation, organic waste will be converted into renewable biogas and renewable electricity for use in Opal’s manufacturing operations.
The project, at Maryvale Mill, will require around A$35m ($24.9m) to design and build.
If it progresses through the development phase, the existing MOU provides the basis for a 50-50 joint venture, with Delorean holding first right of refusal for 50% equity.
David Jettner, General Manager Environment and Sustainability at Opal, said the biogas project has the potential to bring another new energy industry to the Latrobe Valley, and it could be replicated across other Opal sites, subject to front end engineering and design.
Joseph Oliver, Managing Director of Delorean, said it is committed to a pipeline of renewable energy projects across Australia and New Zealand.
Victoria has a large theoretical biogas potential of 80.6 petajoules (PJ) per year, which is enough to meet approximately 37% of the state’s current annual gas consumption. As Australia’s largest food and fibre producer, the state generates significant volumes of agricultural residues and organic waste.
