DORSET RENEWABLE INDUSTRIES - COMMUNITY UPDATE 2014
- 1. Dorset Renewable Industries Pty. Ltd. Community Update 29 October 2014 October, 2014 1
- 2. Dorset Renewable Industries Pty. Ltd. ABN 84 163 324 034 “Dorset Renewable Industries Pty Ltd is a community focused enterprise, aimed at developing new industries for the Dorset region of North East Tasmania, which utilize the region’s renewable resources in ways which makes the community more resilient and improves the environment.”October, 2014 2
- 3. Who we are • We developed as a Community group well over two years ago from within the Dorset municipality in response to the economic situation in the region. • We are one of the focus points for the community’s desire to help itself. • Our group consists of: • Chairman David Hamilton who has extensive experience in environmental health and safety in the oil industry and lives at Lilydale. • Ken & Karen Hall, Michael Brill, Dale Jessup representing community interests, forestry, saw milling and forest products industries, all from the Scottsdale area. • Wendy Mitchell with environmental management and economic development and small business experience, who lives in Launceston. • Local identity, John Beattie who has many years of operational experience in food processing . • Assisted by other North Easterners, Alan Davenport, Heath Blair, Peter Bird October, 2014 3
- 4. Our Broad Objectives • Establish a new forestry-related enterprise in Dorset to make the best use of existing resources. • Deliver positive social, economic and environmental outcomes to the Dorset community. • Use feedstocks that can be produced on an ongoing and reliable basis and give fair payment for them. • Make innovation an important component of the enterprise. • Collaborate and share knowledge and expertise. • Create long term jobs and develop skills. October, 2014 4
- 6. Program October, 2014 6 Ling Siding: DRI’s vision for the site, grant application, and next steps Wendy Mitchell Ling Siding refurbishment project Dale Jessup Volunteers, assistance and staying involved Ken Hall Establishing the Integrated Timber Processing Hub Michael Brill Ethanol Plant update David Hamilton Ethanol Plant resource assessment Jeremy Wilson Ethanol Plant prefeasibility study Martin Rees Funding new timber businesses David Hamilton Questions Panel
- 7. Wendy Mitchell Grant Application — the start of our vision becoming reality October, 2014 7
- 9. Grant Timeline October, 2014 9 June 2013 DRI applied for two grants under the Tasmanian Forestry Agreement economic diversification process: $2.8M for Ling Siding and $1.6M for the ethanol plant July 2013 DRI attempts to prevent Korda Mentha from further dismembering of the Ling Siding site. 25 July 2013 Prime Minister Kevin Rudd announced that DRI’s application for $2.8M to purchase and refurbish Ling Siding was successful, subject to a “value for money” test. August 2013 Korda Mentha starts sale process for Ling Siding, DRI places indicative offer, dependant on grant funding. Sept 2013 DRI submits final bid for Ling Siding, together with letter from Tony Abbott promising not to cut the grant if elected. Sept 2013 Korda Mentha rejects DRI’s offer because of funding uncertainty Oct 2013 RNG Property Developments agree to sell most of the industrial land at Ling Siding to DRI, subject to grant funding Dec 2013 Details of “value for money test” for the grant released June 2014 DRI submits over 400 pages of documentation for value for money test 25 Aug 2014 Assistant Minister for Infrastructure writes to DRI confirming grant, but subject to negotiation of a grant deed (draft grant deed is 46 pages).
- 10. About our Grant • Federal Grant - $2.8 Million plus GST • Strong oversight and management by the Federal Government • Can only be used for the refurbishment of the Ling Site and prepare the site for a Timber Integrated Processing Hub • Funding is tied to milestones that must be completed before we can access further funds • Cannot be used to secure or help set up new businesses • Cannot be used for any other purpose than refurbishment What does that mean? • The site will be ready and then it’s up to the Community, private enterprise, state government, DRI, or a Community Cooperative to encourage, develop and ultimately to establish new enterprises at this site. October, 2014 10
- 11. • DRI Committee needs to stay focused on the proper acquittal of $2.8 million dollars. • We need to ensure that the refurbishment funds are spent in accordance with the DEED. • That the site is ready and able to receive timber businesses that can mutually benefit by being on such a collaborative site. • That all this work culminates in opportunities, skills, work, employment and increased economic hope and activity in the North East Region. Summary October, 2014 11
- 12. Dale Jessup Ling Siding Refurbishment October, 2014 12
- 13. Ling Siding Site Refurbishment Current Condition of the Site October, 2014 13
- 14. Previous Transformer Yard 14October, 2014
- 15. Kiln and Boiler Area October, 2014 15
- 16. Inside Sawmill Building 16October, 2014
- 17. Condition of Buildings 17October, 2014
- 19. Ling Siding Site Refurbishment Major Project Components Consist of: – Restoration of power to the site – Making good all buildings – Restoration of communication & IT systems – Restoration of fire water supply – Restoration of potable water & effluent systems – Installation of a public weighbridge – Restoration of site fencing & erection of new fencing – Re-sealing 27,000 m2 hardstand area. October, 2014 19
- 20. Ling Siding Site Refurbishment Project Management: – Project manager to be engaged – Safety systems to be established – Scope of works to be finalised – Contracts for each project component to be developed – Utility providers to be engaged – Contractors selected and work commences. October, 2014 20
- 21. Ling Siding Site Refurbishment Key Focus Areas of Project – Occupational health and safety of all people involved in the project – Management of environmental issues specific to the site – Maximise value of grant funding – Use of local contractors to minimise economic leakage of the funding – Consideration of rail trail traversing site. October, 2014 21
- 22. Ling Siding Site Refurbishment What the Grant Does Not Fund – Refurbishment of the 20 MW boiler – Funding to attract business to the site – Replacing any buildings that have been removed – Any component of the ethanol plant project. October, 2014 22
- 23. Ling Siding Site Refurbishment The Outcome Will Be An Industrial Site That: – Has separately metered power to each area – Is connected to the internet – Has water and effluent systems – Is secure – Has good road surfaces – Has weighbridge capability – Has scope for further expansion – Will provide ongoing opportunities for our community. October, 2014 23
- 24. Ken Hall Volunteers, assistance and staying involved October, 2014 24
- 25. Michael Brill Establishing The Hub. October, 2014 25
- 26. Future Opportunities • The opportunity taken o Ling Siding will again be available as a site where people are employed processing timber • What the grant funding achieves o Ling Siding as infrastructure • Hub concept offers increased resilience through: o Businesses working together, sharing common resources and services o Ideally, no waste – the maximum value is achieved from every log, regardless of its quality o Many baskets for our economic eggs. • Renewable relationship with timber and industry October, 2014 26
- 27. Potential timber industries • Timber preservation • Timber posts • Log peeling for veneer • Cross-laminated timber • Orientated strand • Pellets • Ethanol • Saw milling • Associated enterprises o Engineering o Enterprises requiring steam raised by burning wood waste o Soil conditioning – composting and/or biochar October, 2014 27
- 28. David Hamilton Ethanol Plant Update October, 2014 28
- 29. Overview • Ethtec are developing a process for converting woody material to ethanol o One of several “cellulosic ethanol” processes being developed world-wide. • Ethtec’s approach suits smaller plants and can use a range of feedstocks. • DRI is considering the opportunity of a plant using Ethtec’s technology: o To be located at Ling Siding o Producing 30 million litres of ethanol per year o Using 150,000 tonnes of feedstock per year, some of it waste, the rest logs from local tree growers. October, 2014 29
- 30. Advantages of possible Ethanol Plant • Provide local employment and use local support services. • Pay local suppliers for feedstock • Ethanol product a renewable liquid fuel: o Able to be blended into gasoline and diesel o Some engines can use 100% ethanol o Reduce reliance on fossil fuels • Reduce reliance on petroleum imported into Tasmania o Improved security of supply o Reduces economic leakage • Possibility of some non-fuel products as well: o Ethanol as a solvent o Sugars for bio-plastics October, 2014 30
- 31. Status of ethanol plant • Tasmanian Government (Dept. of State Growth) paid for a resource study by Esk Mapping and GIS • Tasmanian Government and Dorset Council jointly funded a prefeasibility study which was performed by KPMG • Ethtec are continuing technology development o Pilot Plant at Harwood in NSW has successfully completed Phases 1 and 2 o Preliminary work for Phase 3 well underway o DRI has a current Memorandum of Understanding with Ethtec giving us access to their technology. October, 2014 31
- 32. Ethtec Pilot Plant Phase 1 and Phase 2 October, 2014 32
- 33. Ethtec Pilot Plant Phase 1 and Phase 2 October, 2014 33
- 34. Ethtec Pilot Plant Phase 1 and Phase 2 October, 2014 34
- 35. Ethtec Pilot Plant Phase 1 and Phase 2 October, 2014 35
- 36. Next Steps There are many steps still before us if the ethanol plant opportunity is to become a reality, such as: o Ethtec need to successfully complete their pilot plant project and decide that the process is commercially feasible. o DRI or the cooperative will need to negotiate an agreement with Ethtec to have access to detailed information about the plant and process (payment is likely to be required). o There will need to be a range of engineering and environmental studies and a final plant design developed. o Set up arrangements to buy feedstocks and sell the products. o A formal, detailed feasibility study would be required. o If everything looks OK then money would need to be raised/borrowed to build the plant and Government approvals obtained. October, 2014 36
- 37. Jeremy Wilson, Esk Mapping and GIS Resource Assessment October, 2014 37
- 39. Funding • Establishing any new business requires money. • Money will need to be raised to continue to develop the ethanol project. • If the Dorset community wants to establish a new enterprise, then the community will need to contribute funds to help make that happen. • The usual way for people to contribute to establishing a new enterprise is to buy shares in it: o A way for the community to invest in itself o A way for profits to be distributed to investors in the form of dividends. October, 2014 39
- 40. Cooperative • DRI has considered KPMG’s advice about a suitable corporate structure that will enable: o Control of enterprises to remain in the community o Funds to be raised from members of the community at reasonable cost • DRI has decided that it will seek to start a cooperative, with the objectives of: o Looking for timber-related opportunities (not just the ethanol plant) that would provide local employment and local economic development. o Getting wider community involvement in developing opportunities. • We expect to kick off the process for starting a cooperative sometime next year o After the Tasmanian legislation regulating cooperatives has been upgraded to a new national model. October, 2014 40
- 41. Conclusions • As a community we need to take charge of our own destiny. • The DRI team have worked very hard and have achieved a lot since our previous community update. • There are many opportunities in the wood, wood products and energy from wood area. • The Ling Siding site gives us an excellent place to start the rebuilding: o Need locally owned businesses o Need a range of products, processes and enterprises to make the new timber economy as resilient as possible • A cooperative is the ideal structure for the community to use to build a better future. October, 2014 41