The Forests & Forest Industry Council and wood-fired power stations

In January 2010 the Forests & Forest Industry Council released The New Forest Industry Plan, a blueprint for dramatic expansion of the Tasmanian forestry industry. The report touted the development of three wood-fired power stations.

Excerpts from The New Forest Industry Plan

"Wealth creation"

In the "wealth creation" section of the report, the FFIC state that::

• "Biomass energy production creates wealth from waste products. Establishing three 30 MW bioelectricity plants and one export oriented wood pellet plant requires investments of $370 million. A single 30 MW power plant will provide electricity for around 12,000 houses. These investments would generate $120 million annually in revenue, support 165 direct jobs.and utilise over 1.1 million cubic metres of wood waste."

• "Biomass energy production would significantly add value to the lowest quality resource and would facilitate wealth creation from what is otherwise a waste product."

• "Export opportunities for wood pellet and briquette production are emerging, especially in Europe where demand for wood pellets is expected to continue to be underpinned by a forecast wood-energy deficit of 200 million cubic metres by 2020. URS Forestry reports average Tasmanian ‘Free On Board’ prices of $100 per tonne are achievable and would support investments focusing on export markets."

• "A single, regional wood pellet plant would require about $25 million in capital to establish; use around 200,000 cubic metres wood waste annually; produce 100,000 tonnes of pellets employ 15 people full time; and generate $44 million in annual income. Regional pellet production provides efficiencies by reducing the transport costs associated with the delivery of raw material. However export scale opportunities may require shipments of 250,000 tonnes annually and therefore require either larger processing facilities or combining outputs from several facilities."

• "There is scope to further develop and integrate wood pellet production with biofuel (liquid fuel from plant biomass) and industrial chemical extraction technologies within existing mills which would maximise production efficiencies. Internationally the potential for biorefineries to convert wood fibres to vehicle fuels is technically feasible and investigation is focused on primary technologies to produce gas. However second generation biofuel technologies that include the production of ethanol and biodiesel require significant technological development, particularly in commercialising and scaling up experimental technologies. Technological advances in biofuel production may improve the cost competitiveness in the next 10 years."

• "There are also a range of carbon-related products that present market opportunities arising from the Carbon Pollution Reduction Scheme (CPRS) and increasing carbon prices. These include production of charcoal to replace coking coal in industrial carbon processes, the development of biochar to improve carbon storage and provide productivity improvements for agriculture, and the production of activated carbon."

"Climate change"

In the "climate change" section of the report, the FFIC stated that:

• "There is a vital difference between energy production from fossil fuels and from biomass. Burning fossil fuels release CO2 that has been locked up for millions of years. By contrast burning biomass simply returns to the atmosphere CO2 that was absorbed when plants grew ... there is no net release of CO2 if the cycle of harvest and growth is sustained";

• "The forest industry does not support the use of wood biomass for generating energy which is sourced from illegal land clearing activities, or from forests which are not sustainably managed under independent, voluntary internationally recognised management systems. The forest industry provides opportunities to further develop renewable energy technology and processes. Increasing the contribution that renewable energy systems make to the state’s energy capacity will help reduce our collective ‘carbon footprint’, drive the development and implementation of new technologies and an innovative knowledge-based industry."

• "A significant advantage of increased woodbased heat and bioenergy production is that, unlike fossil fuels, this process does not release geologically stored carbon. It is also considered carbon neutral (balanced) as the carbon released from wood is recaptured when managed forests are replanted and the new trees absorb atmospheric carbon.77 This activity is sustainable. Furthermore the increased use of energy produced from renewable sources such as forest biomass is an important means of diversifying and securing our energy sources. It will improve the stability of our energy supply while providing opportunities to generate wealth and reducing net greenhouse gas emissions."

• "To facilitate this approach we recommend the Australian Government review initiatives developed under the European Union’s National Biomass Action Plan. We also seek a commitment that a review will examine current regulations which, depending on how they are applied, might distort the capacity to develop bioenergy markets by restricting the eligibility of wood for renewable energy credits."

• "In undertaking a review of bioenergy policy, we consider it is appropriate that the Australian Government address the following impediments:

• • "Lack of proven or formalised markets and banks forrenewable energy certificates (RECs). Although the REC market in Australia is maturing, there is still a reasonable degree of uncertainty about prices that can be achieved from biomass RECs. This could be addressed in part by improved access to market information."

• • "Apparent reluctance by the financial community to invest in this new industry for Australia. The Australian financial sector has limited experience with investments in the renewable energy sector, particularly in biomass energy. This seems to have led to a cautious response from the sector."

• • "Few if any potential proponents have operational experience in biomass renewable energy in Australia. The majority of the interest to date has come from finance brokers, REC traders and construction companies, rather than from those that would operate a plant. Governments have to date focused on wind and solar opportunities. There is an apparent reluctance to equally promote biomass energy. Many government communications on the subject fail to mention biomass opportunities. Government financial assistance for research and development and for technology transfer has a strong emphasis on wind, solar and geothermal."

• • "Lack of information on supplementary resources (for example private property and municipal waste). The quantity and location of residues available from sources other than state forests are currently not well known. A regional approach, involving all potential suppliers, is required to address this information gap."

• • "The extension of renewable energy targets provides significant market opportunities for bioenergy generation from mill and forest waste.We support the development of renewable energy technology and processes, bioelectricity generation, especially via biogas or integrated Combined Heat and Power (CHP) systems. This form of electricity is an attractive option when compared to wind or solar energy as the energy can be stored in the biomass and generated to meet demand."

• "Developing these systems will require significant innovation in resource harvesting and handling, processing technologies, and market development. Renewable bioenergy systems can:
  • diversify energy supply
  • generate consistent outputs
  • reduce smoke generated through regeneration burns
  • replace high greenhouse emitting fuels
  • reduce landfill and recycle waste
  • protect and create jobs in rural areas
  • create export opportunities in power generation and technological leadership"

• "To realise these benefits we will work with governments and others to identify strategically located opportunities which support the establishment of biomass power plants close to forest and associated supply chain infrastructure. Suitable locations may include the north-west and southern Tasmania. Production of each MWh of electricity in a 20 MW power plant requires approximately 0.7 dry tonnes of wood waste (or 1.4 green metric tonnes of wood waste). This equates to an annual supply of 215,000-240,000 green tonnes of wood waste for such a power plant. A 20 MW facility could produce enough renewable electricity to supply 20,000 homes for a year."

• "This form of energy could replace current imports through Basslink of coal-based electricity and supplement existing hydro-electrical supply capacity in times of drought. This will benefit the state by promoting a ‘carbon neutral economy’ and generating renewable energy income into export markets through the national electricity network via BassLink."

• "National and state policies and regulatory systems and current supply arrangements must be reviewed to develop the full range of wood-based heat and electricity production opportunities."

Articles and resources

Related SourceWatch articles

• Forestry Tasmania and wood-fired power stations
• Tasmanian Greenhouse Gas Emission Reduction Project - Understanding the Potential for Reducing Tasmania’s Greenhouse Gas Emissions

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