Emerging renewable energy business Sweetman Renewables Limited hopes to export woodchip biomass from the Port of Newcastle - a move that has been slammed by the Nature Conservation Council of NSW.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Sweetman, which is currently conducting a pre-IPO (initial public offering) capital raise ahead of its planned debut on the ASX later this year, recently signed a 20-year, $US90 million woodchip supply contract with a Japanese conglomerate.
It is also negotiating with Verdant Earth Technologies to be the primary supplier to their $550 million 151 megawatt power station at Warkworth near Singleton.
Sweetmans Renewables chairman John Halkett said the biomass consisted of sawmill and wood processing waste.
This included residues from sawmills and further wood processing using logs supplied under existing contractual arrangements by the Forestry Corporation of NSW.
Forest residues, or non-sawlog material from certified forestry operations, would also be used.
"Presently this material is not recovered and may contribute to fuel loadings that might exacerbate bushfire intensity," he said.
A third component is post-consumer biomass from industrial and residential waste streams that is currently sent to landfill.
"These biomass streams will make a valuable contribution to regional development via employment opportunities in biomass acquisition, logistics and transport, forest management activities, regional sawmilling and jobs associated with the conversion of biomass to energy and related products," Mr Halkett said.
He confirmed the company was in discussions with logistics company Qube regarding the possibility of using a facility at the Port of Newcastle formerly used by Boral to export woodchips.
Woodchip exports from the Port of Newcastle ceased in 2013.
Nature Conservation Council chief executive Chris Gambian said the conservation movement would block any attempt to resume woodchip exports from the port.
"There is no acceptable reason to trash our precious native forests, but turning them into woodchips to burn in Japanese power stations is especially idiotic," he said.
"The conservation movement campaigned for 30 years to shut the Boral woodchip export terminal, a campaign we won in 2013.
"Anyone thinking of investing in Sweetman should be made aware the conservation movement will not rest until this proposal is dead and buried."
A Port of Newcastle spokeswoman said the port was not aware of any engagement with Sweetman or plans to recommence woodchip exports.
Sweetman Renewables announced on Tuesday that it had signed a multi-million dollar agreement with CAC-H2 Private Limited of Singapore to establish a hydrogen production centre of excellence in the Hunter.
The $15 million deal aims to establish Australia's first wood-fed hydrogen production plant and the country's largest green bio-hydrogen production eco-hub.
The company said the project could create 40 full-time jobs and would be named Hunter Valley One.
The joint venture deal involves investment from CAC-H2 in return for 80 per cent ownership of the new enterprise to establish the first two production lines on a 30-acre site adjacent to the Sweetman's Millfield timber mill.
Director of CAC-H2 Group Arman Massoumi said the company was excited by the opportunity to partner with Sweetman to establish Australia's largest green bio-hydrogen production eco-hub.
"We initially planned to start with just two production lines but due to large demand from both Japan and Korea, we envisage to quickly scale up the Sweetman operation to multiple lines producing Hydrogen and Biochar for export markets via a new facility at the Newcastle Port," he said.
IN THE NEWS:
- AJ search volunteers taking COVID tests after potential Putty exposure
- Hunter vaccination rates more than 20% lower than parts of Sydney
- Hunter records 7 new COVID-19 cases, 4 infectious in community
- Anthony "AJ" Elfalak has been found alive near a creek three days after his disappearance
- NSW records 1220 COVID-19 cases, 8 deaths
Our journalists work hard to provide local, up-to-date news to the community. This is how you can continue to access our trusted content:
- Bookmark: newcastleherald.com.au
- Download our app
- Make sure you are signed up for our breaking and regular headlines newsletters
- Follow us on Twitter
- Follow us on Instagram
- Follow us on Google News