Food producers criticise Manjimup biomass plant construction extension
Food producers in Manjimup have criticised a decision to extend the deadline for work to start on a biomass power plant in the region.
The $150 million project involves building and operating a 40-megawatt wood-fired plant 10 kilometres south-west of the West Australian town, which would be fuelled by 380,000 tonnes of blue gum and pine plantation waste each year.
The proposal was approved in 2009 by the then WA environment minister, with one of the conditions being for construction to start within five years, but the deadline lapsed earlier this year.
Environment Minister Albert Jacob has now approved a request by proponent WA Biomass to extend the deadline until March 2019.
Proponents say the project is a good example of renewable energy, but local marron farmer and Biomass Action Group spokesman Neil Bartholomaeus said the decision was outrageous.
"Some of our neighbours have likened this project to putting a toilet in the middle of a kitchen," he said.
"It reflects utter contempt by the Minister and the State Government for food and wine producers in the food bowl of the South West."
Plant 'will deter investment in food production'
Mr Bartholomaeus lives three kilometres from the proposed site and said there were other food producers who lived much closer.
He feared the power plant would damage the region's "clean and green" image and deter investment in food production.
"It's a very serious threat at a time when the State Government is funding the Southern Forest Food Council, putting money into promotion of food in this area, at a time when there's such an otherwise excellent outlook for food production in the Manjimup and Pemberton area," Mr Bartholomaeus said.
"This project is to be located ... in the middle of the iconic black truffle industry that's putting Manjimup on the world cuisine map.
"It's the last thing you'd want to do for the truffle industry which offers so much for the South West and Western Australia."
He said the Government should have rejected the project when it had the chance.
"It leaves this threat to the food bowl of the South West in our neighbourhood when the opportunity was there for the State Government to shut this down when the first five years expired."
The project's proponent, Western Australia Biomass, is a joint venture between Perth-based WestGen and National Power.
WestGen took a 50 per cent share in the company in 2012 after former backer investment bank Babcock and Brown went into voluntary administration.
Biomass plant 'clean, renewable'
WA Biomass director Richard Harris rejected suggestions the power plant would harm the region's image.
"It actually is a clean energy project. It is renewable," he said.
I've got a lot of support for the project from people who would like to see clean energy, so I think it will certainly add to Manjimup's growing reputation for clean and green.
"What we're doing is taking the waste residue from timber once it's been harvested and putting that through the power station and usually, at the moment, that waste residue is burnt in the open air so we're making a benefit to the environment.
"I've got a lot of support for the project from people who would like to see clean energy, so I think it will certainly add to Manjimup's growing reputation for clean and green."
Mr Harris said the project was bound by strict environmental controls.
"The technology we use will make sure we meet the highest environmental standards and there'll be no smoke images over Manjimup or anything like that," he said.
The plant would bring a significant economic benefit to the area, including 300 jobs in construction, and up to 100 full-time jobs in the power station and the timber industry, Mr Harris said.
"Something like a benefit to the region of at least $20–30 million a year," he said.
The plant was close to being built in the late 2000s, but the global financial crisis meant the project could not be financed at that time.
Mr Harris welcomed the Environment Minister's decision to grant the five-year extension, but said there were still financial and commercial decisions to be made, once the Federal Government determined the future of Australia's renewable energy target.
"When we get an outcome ... and hopefully it's a favourable outcome, we're then in a better position to take this forward to get a decision on a final investment," Mr Harris said.
"The project already had a power purchase agreement with Synergy to sell its electricity and renewable energy certificates to Synergy.
"That contract extension, or renewal if you like, will be dependent on the Federal Government's renewable energy review."
He said if the outstanding decisions can be made this year, WA Biomass hopes to start construction in 2015.