A feasibility study has confirmed Opal Australian Paper’s Maryvale Mill in Gippsland has the potential to produce renewable bio-energy, allowing the manufacturer to transition away from gas.
Partnering with Australian bioenergy company Delorean Corporation, the feasibility study confirmed the possibility of constructing a large scale anaerobic digestion facility, which would use other organic residues and potentially bi-products from paper manufacturing and convert it into renewable bio-gas.
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The bio-gas would replace natural gas used by the rotary lime kiln at the mill.
The next phase of the project involves the front-end engineering and design to complete the project proposal, regulatory approvals, and source the necessary organic feedstock and residue off-take agreements. These activities will enable a final investment decision to be
evaluated.
Subject to the engineering and design, the project is estimated to require a $35 million investment for construction and design and could create approximately eight FTEs in addition to flow on jobs.
Delorean managing director Joseph Oliver said the outcome of the study was very promising.
“Delorean is committed to a pipeline of new renewable energy projects across Australia and New Zealand. Subject to the outcome of the front end engineering and design for the proposed project, the same model could be used to roll out more projects for Opal at a
number of its other sites,” he said.
Opal general manager environment and sustainability David Jettner said the bio-gas project had the potential to bring another new energy industry to the Latrobe Valley.
“Exploring the feasibility of replacing natural gas with bio-gas is aligned to Opal’s drive towards a new energy future. The outcome of the study is exciting because it has the potential to be replicated across other Opal sites that have traditionally been high consumers of natural gas,” he said.
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“We’re optimistic about the potential of bio-gas as a renewable alternative to gas.”
