Tassie business boom - Gas plant, turbine deal to create jobs

Hobart Mercury
Wednesday 15/7/2009 Page: 2

A $150 million liquid natural gas plant will be built at Westbury in August after it was approved by the Meander Valley Council yesterday. And another Tasmanian business has announced it will make and sell wind turbines in a deal that could employ 400 people at Bell Bay. BOC's general manager operations Alex Dronoff said the Westbury LNG plant and delivery infrastructure would be the first pipeline-to-truck supply in Australia and would enable trucks to cut reliance on diesel and reduce greenhouse gas emissions.

"The construction and ongoing operation of this plant represents a $150 million confirmation of the commercial merits of natural gas as an alternative to diesel for Tasmanian road transport." Mr Dronoff said. "LNG is an ideal fuel for transport operators because of its stable price and it also releases 25% less greenhouse gases than diesel trucks." The micro LNG plant would supply 120 trucks owned by seven Tasmanian transport operators who comprise the LNG Refuellers consortium.

The plant would have the capacity to produce 50 tonnes of LNG a day - the equivalent of 70,000 litres of diesel. BOC will also construct the entire supply chain infrastructure including LNG road tankers and six refuelling stations around the state. LNG Refuellers chairman Ken Padgett said that conversion of trucks would be expensive but would ultimately be cost-effective. "The major benefit will be the stabilisation of fuel cost so we get off the rollercoaster that is crippling the transport industry around Australia," he said.

Meander Valley Council Mayor Mark Shelton said the council and developers hoped the state and federal governments would assist in the cost of upgrading Birralee Rd as part of the development. He said the council had contributed $317,000. Meanwhile, renewable energy business Eco Energy Solutions has signed an agreement with German company Norwind to market wind turbines in Australia, New Zealand and South-East Asia.

Under the agreement. Eco Energy will manufacture, assemble and sell Norwind's complete range of wind turbines. Managing director Garry Yost said the market potential for wind energy was huge amid rising energy costs and a desire for green power. "We have just under 450 turbines in the pipeline worth over $212 million already." Mr Yost said.