Australian
Friday 12/3/2010 Page: 25
Eighty jobs are under threat as a northern NSW renewable energy project teeters on the brink of collapse after a revamp of a Rudd government scheme came too late. The NSW Sugar Milling Cooperative must decide today whether to call in a receiver to its Sunshine Energy renewable energy venture, which faces a financial crisis after a dramatic slump in the price of renewable energy certificates (RECs) that are meant to encourage green fuels.
The inclusion of solar panels in the original scheme produced a glut of RECs, forcing the price down from an expected $50 to about $30. The co-operative's chief executive, Chris Connors, said about 80 people were employed at two co-generation plants at Condong and Broadwater that use a sugar cane byproduct called bagasse to generate about 68 MWs of electricity. The plants, established in a joint venture with Delta Energy, have lost about $6 million in revenue.
Mr Connors said a further 450 jobs at the mills were also at risk. Last month, the government announced the scheme would be split into two parts next year to ensure a fixed REC price for small-scale projects. But Nationals senator Ron Boswell said the government had acted too late. Climate Change Minister Penny Wong said Sunshine Energy was relying on the spot market rather than long-term contracts.
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