The NSW Land and Environment Court will hear three days of evidence this week about a proposal to establish a biomass power station near Warkworth.
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It follows Singleton Council's deemed refusal of the project in June.
Verdant Earth Technologies is seeking to burn about a million tonnes of native forest biomass for electricity and hydrogen production annually.
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.
In a submission to Singleton Council regarding a proposed modification to the project Independent Upper House MP Justin Field said he was opposed to the project primarily due to its "certain impact in increasing the loss of critical native forest habitat and the risk the project would slow or displace the transition from coal-fired power to renewable energy in NSW."
"As a member of the NSW Legislative Council I have taken a particular interest in the Redbank proposal and have asked a number of questions of various government ministers and departments about their engagement with the proponents and of the regulatory framework that would govern the use of particular feedstocks proposed for the project," he said.
He also disputed the the estimates of available native forest biomass.
"These estimates were made prior to the 2019/2020 bushfires that devastated the NSW State Forest estate. Subsequent evidence currently held by the NSW Government about the impact of the fires on NSW forestry resources raises considerable doubt about these estimates," he wrote.
"The native forest 'residue' which is proposed to be burned at Redbank would not otherwise be left to burn/rot in the forest, but would remain as living standing trees."
A motion, moved by Mr Field in October, noted there were "increasing efforts" to open up the state's forests for energy production.
The motion asserted support for "the use of genuinely renewable and sustainable biomass" but it raised "concerns about the potential impact on native forests of expanding access to native forest biomaterials for the biomass to energy sector."