RuralAus to study feasibility study of Kangaroo Island renewable power plant
THE BOURSE WHISPERER: Perth forestry group, RuralAus Investments is about to kick off a full feasibility study for a biomass power plant, fired from plantation timber residue on Kangaroo Island.
RuralAus will spend $374,000 to conduct a full feasibility study into a 10 megawatt renewable power station on Kangaroo Island, which it says will potentially provide a ‘clean green’ energy solution.
For the geographically challenged among us Kangaroo Island is located 15 kilometres off the tip of the southern coast of the Fleurieu Peninsula in South Australia, 110kms south-west of Adelaide.
Measuring in at 55kms wide and 165kms east to west with a coastline of some 509kms Kangaroo Island is Australia’s third largest and is famous for its scenery, geographic features and unique flora and fauna, and is promoted internationally as a premier eco-tourism destination.
It has retained many plants and animals no longer found on mainland Australia and the largest remaining tracts of remnant native vegetation within the agricultural zone in South Australia.
The principal centre of the Island’s administrative and economic activity is the township of Kingscote.
RuralAus’ feasibility study has the full backing of relevant South Australian Government agencies mainly due to the fact the current reliability and performance of the island’s energy network is plagued by high costs and limitations of supply associated with power transmission from the mainland.
RuralAus owns and manages approximately 5,000 hectares of timber plantation on Kangaroo Island, and also owns modern saw milling and processing facilities. It is currently exploring a range of timber development options, including export logs and sawn lumber.
According to RuralAus chief executive officer John Ipsen the biomass power station, which uses residue from timber processing and harvesting as a fuel source, represented a significant growth opportunity for Kangaroo Island and RuralAus.
“We have a real opportunity to make a substantial impact on KI. We have ready access to an excellent source of renewable energy, which can provide a clean and relatively low cost power solution for the island,” he said.
A 10MW renewable energy power plant will take approximately 18 months in planning and construction at an estimated cost of approximately AUD$30 million.
Once operational it will, in conjunction with the sawmill, also have the potential to create considerable employment and economic input into the island economy.
“It allows for RuralAus to add a consistent supply to the energy network especially in times of peak use. It also allows for other industries to either expand or be created as a result of a consistent supply of ‘base load’ clean energy.” Ipsen said.
“We believe this study reinforces the significance of this project and we are excited about the transformational possibilities for the company.”