Ingham ethanol project gathers momentum: By BILL KERR - Australia.Tuesday, 1 August 2006
An ethanol technology pilot plant to be built at Ingham by North Queensland cane growers and other businessmen is attracting international interest. Ethanol Technologies Ltd (Ethtec) plans to produce ethanol from lignocellulosic materials - sugarcane bagasse, timber, kenaf, crop stubbles, and municipal green waste. Ethtec is also developing markets for diesohol, a blend of ethanol and diesel fuel. The group has the worldwide licence to develop intellectual property for new processes developed by Apace Research Ltd. Robert Carey, Ethtec's director says the new technology is quite different from that being pursued in other parts of the world. END
Why is Diesohol so important to the Pilot Plant Project?: Diesohol is so important because it has the potential to create a very large market for ethanol that will require new ethanol production technology, e.g. ethanol from lignocellulosic material, to satisfy. The Pilot Plant Project is to further develop and commercialise new ethanol from lignocellulosic material technology. Some mining companies in Australia are already looking to use Diesohol within their mining operations and should they fully convert their fuel usage to Diesohol that in itself will create an enormous demand for ethanol. The use of Diesohol can help these companies meet the Greenhouse Challenge, which begins on the 1st of July 2006, in order for them to be eligible to claim energy grants credits linked to offroad fuel usage. These energy grants credits are presently valued at $0.38143 per litre of diesel. The share of the royalties for any Diesohol sales received by Ethtec may be used to either partly or wholly fund further phases of the Pilot Plant Project or partly or wholly distributed to shareholders in dividends.
Pilot plant background: According to Chairman of Ethtec, Mr. Lance Rodman, there has been a good response from cane farmers, however the response from the general public has been surprising. "We have not advertised outside of Queensland and yet we are receiving applications for shares from interstate". There has also been interest from investors in the United States, Japan and China" he said. "The directors have always believed that the Pilot Plant Project has a good chance of success and this is supported by the regular updates being received from our research scientists in the US. The level of interest generally has been enhanced by the current high crude oil prices, which is impacting on all facets of life and the understanding of the need to seek alternative renewable fuel sources".Mr Rodman also indicated Ethtec was close to finalizing negotiations with a multinational construction and mining corporation to form a strategic alliance. The alliance will deliver significant project management capabilities for the project and also provide support in relation to government grant funding applications. Ethtec also sees the alliance as important step in advancing the companies interest in the promotion of the use of the Apace Research Limited (Apace) diesohol product into the mining sector.
NSW Parlimetary debate and comments on Apace Research: On behalf of the Australian Democrats I suggest that the chairman consider Dr Russell R. Reeves, the Managing Director and Chief Chemist of Apace Research Limited. Dr Reeves obtained his PhD in chemistry from the University of Newcastle and was awarded a post-doctoral research fellowship in the Department of Chemical Engineering at the University of Sydney in 1979. He joined Apace Research Limited in 1980 and was appointed managing director in 1981. He is the inventor of diesohol and also the simultaneous ethanol recovery-effluent treatment process. Apace has been granted patents for both these technologies.
As I said this morning when the House was discussing a motion moved by the Hon. I. M. Macdonald, the Federal Government's removal of the subsidy for the manufacture of ethanol is a backward step that this country will regret. Ethanol manufacture will assist farmers and consumers alike by cutting down on the necessity to import so much crude oil. We should be using our reserves of oil and petroleum products, and in this respect ethanol can be an important additive. Its manufacture would create jobs in the rural community and dispose of waste products, the biomass from agriculture, therefore assisting farmers. As the cost of petroleum rises worldwide, development of our own ethanol industry would enable us to keep our fuel prices at a lower rate than would be possible if we were to become even more dependent on imported crude oil.
Dr Reeves has unrivalled expertise in the field of ethanol production. It is an innovation that he has been responsible for in the past. His experience will be very valuable to the council. As I said this morning, there is the possibility of creating some 150 by 54 jobs in New South Wales alone by the development of more ethanol plants, apart from the one at Nowra that is using biomass from Manildra in the north of the State. It is certainly a job-creation program as well as being environmentally friendly and expanding the use of biomass and bio products from wheat and thinnings from forestry. I urge the Minister for Community Services, Minister for Aged Services, and Minister for Disability Services to advise his leader, the Treasurer, Minister for Energy, Minister for State and Regional Development, that we did suggest the name of a person suitable to be a member of the Innovation Council. That name is Dr Russell Reeves. I hope that this suggestion will be considered in due course. With those remarks, I am happy to support the legislation. I congratulate the Government on introducing the Innovation Council of New South Wales.
Apace Research Limited is a company that was incorporated in 1979 as a non-profit company, limited by a guarantee to undertake research and development of renewable energy technologies. The company is doing very well indeed.. Dr Reeves is responsible for the administration of Apace Research Limited, as well as the company's research and development programs in applied chemistry.
The importance of the bill will become evident at 6.30 this evening when a lecture will be given in the theatrette about how we are running out of oil globally. One of the ways of replacing oil - whether it be imported oil or oil produced in Australia - is to produce diesohol. Diesohol is clean; it adds nothing to the greenhouse effect. Waste products from the sugar industry, for example, such as bagasse can be used for its production. Even waste products from silviculture thinnings from the softwood plantations which are not being used now at all can be put to use. One of the reasons for softwood plantations degrading in New South Wales is that the thinnings are not being used. These could be used in the diesohol process, which would be a double benefit: a benefit in producing diesohol and a benefit from maintaining the softwood plantations in New South Wales which are nowhere near as good as the plantations in New Zealand. In New Zealand the plantations are well maintained because the thinnings have a use.
I ask the Minister, the Treasurer and Dr Gus Guthrie to consider putting Dr Russell Reeves on the council. We need to get serious about replacing our imports of oil and our own oil production, which is now decreasing. END
