STRAW could be part of the solution to the state’s electricity woes.
Yorke Biomass Energy has put in a tender to supply one quarter of the state government’s long-term electricity needs from a proposed 15-megawatt straw-fuelled biomass plant at Ardrossan.
If successful, the $90-million renewable energy plant – the first of its kind in Australia – could be operational by late 2018.
YBE chair Terry Kallis applauded the state government for getting on the front foot to procure 75 per cent of its long-term electricity needs in an effort to increase energy market competition and lower costs for consumers.
He is confident their biomass price will be highly-competitive, with wind and solar requiring storage to supply baseload power, adding significantly to costs.
It will also have strong economic benefits, including the creation of 40 jobs and $27m annually in spin-offs to the local community.
“Biomass has a big role to play in the future of SA’s energy mix, and we think we can provide a blueprint on the Yorke Peninsula that could then be replicated across the country,” he said.
YBE has secured a five-hectare site where straw stubble will be burned in specially-designed boilers to produce heat, steam and ultimately electricity.
It is using a co-operative model to secure supply and has signed up more than 20 growers so far with a guaranteed $85 a tonne, plus potential upsides based on profits.
“A lot of farmers are holding back waiting to see, but if we got the government offtake for 20 years then I suspect people may be hurrying to participate,” he said.
Mr Kallis said YBE would lodge an application for up to $10m in capital grants next month from the Australian Renewable Energy Agency.