A new feasibility study has highlighted an opportunity to produce renewable bio-energy at Opal Australian Paper’s Maryvale Mill in Gippsland, marking a step toward more sustainable manufacturing.
Partnering with Delorean Corporation, a leading Australian bioenergy company, the feasibility study confirmed the possibility of constructing a large-scale anaerobic digestion facility, which would use other organic residues and potentially bi-products from paper manufacturing and convert it into renewable bio-gas.
The bio-gas would replace natural gas used by the rotary lime kiln at the Mill and is aligned with Opal’s net zero strategy.
The next phase of the project involves the front-end engineering and design to complete the project proposal, regulatory approvals and source the necessary organic feedstock and residue off-take agreements. These activities will enable a final investment decision to be evaluated.
Subject to the engineering and design, the project is estimated to require a $35 million investment for construction and design and could create approximately eight FTEs in addition to flow on jobs.
According to Joseph Oliver, managing director of Delorean, the outcome of the study was very promising.
“Delorean is committed to a pipeline of new, renewable energy projects across Australia and New Zealand,” he said.
“Subject to the outcome of the front-end engineering and design for the proposed project, the same model could be used to roll out more projects for Opal at a number of its other sites.”
David Jettner, general manager for Environment and Sustainability at Opal, said the bio-gas project had the potential to bring another new energy industry to the Latrobe Valley.
“Exploring the feasibility of replacing natural gas with bio-gas is aligned to Opal’s drive towards a new energy future,” he added.
“The outcome of the study is exciting because it has the potential to be replicated across other Opal sites that have traditionally been high consumers of natural gas. We’re optimistic about the potential of bio-gas as a renewable alternative to gas.”
