February 9, 2010
The Queensland Government has reaffirmed its commitment to use renewable energy sources by providing $9 million towards Mackay Sugar.
Announced yesterday, contracts have been issued for Mackay Sugar to construct a $120 million power plant which will generate more than 90 megawatts of electricity from sugar cane waste.
Minister for Mines and Energy Stephen Robertson says up to 30 percent of Mackay's annual electricity supply may be generated through the innovative cogeneration project at Mackay Sugar's Racecourse Sugar mill and refinery.
"This is an innovative, clean energy project that will deliver important benefits for the company, the city of Mackay and the environment," Robertson says.
He says Mackay Sugar plans to replace the existing plant at the Racecourse Mill to generate enough clean, renewable power each year to achieve energy self-sufficiency and export electricity to the local grid.
A new steam turbine generator to be installed at the mill will use bagasse (stored sugar cane waste) more productively than its traditional use in low efficiency boilers.
"When operational, the plant will deliver 65 megawatts of thermal power to the Racecourse sugar mill and refinery thereby achieving energy self-sufficiency for the facility," Robertson says.
"At the same time, it will deliver 27 megawatts of clean renewable energy to the Mackay city electricity network continuously for 50 weeks a year,” he says.
The project, jointly funded by the Queensland Office of Clean Energy, may also prove an important contributor to the long term viability and competitiveness of the sugar industry in the region.
"In these tough economic times, the sugar industry is seeking opportunities to combine production of sugar and renewable energy through cogeneration, reduce costs, and diversify into complementary production such as ethanol,” Robertson says.
"The Mackay Sugar project offers a significant opportunity to drive the growth of renewable energy use and production in the sugar mills of regional Queensland,” he says.
Mackay Sugar anticipates the new cogeneration plant at the Racecourse Mill should be ready for commissioning in March 2012.
