This shows some of the benefits to local communities from locally produced CSG. This is form Dart Energies latest news release.
Dart Energy (ASX:DTE) is pleased to announce that Maria’s Farm Veggies Pty Ltd, (MFV), which is 20% owned by Dart and 80% by Horticulture & Energy Investment Company Australia (HEICA), has secured Development Approval (DA) from the Port Stephens Council and Joint Regional Planning Authority to construct a $65m horticultural glasshouse at Fullerton Cove. Dart has a conditional Gas Sales Agreement(GSA) with MFV to supply gas from PEL 458 at Fullerton Cove. The 16.4 hectare glasshouse will employ125+ during construction and from early 2014 is expected to initially produce up to 8,000 tonnes of qualityorganic tomatoes and 1,500 tonnes of capsicums each year for sale to local markets.
MFV requires a supply of gas to ensure effective climate control is available to the glasshouse. MFV’s gas fired boilers will produce sufficient heat to maintain optimal temperatures within the glasshouse and CO2 produced from the heating process will be captured to feed the crops and significantly enhance production yields. Water produced from the coal seams during the initial phases of gas extraction will be treated and used to irrigate the crop. It is expected that the sequestering of carbon and the use of treated water will ensure the project has near zero emissions of CO2 and is virtually self-sufficient in water. Dart previously announced it had executed a GSA with MFV for the delivery of CSG sourced from PEL 458 at Fullerton Cove. In the event Dart’s pilot project at Fullerton Cove is successful and a production licence is granted, it will supply MFV with an initial 1PJ of gas over 10 years which will be priced at $7.50/GJ and indexed to CPI. The GSA allows for an increase in supply of CSG up to 6PJ if the MFV project is expanded to include an 8MW combined heat and power plant. Additional supply volumes will be priced in accordance with the terms of the GSA providing Dart with a minimum return on capital.
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