Queensland Government funds Mackay Sugar Co-generation Project

The Queensland Government has reaffirmed its commitment to use renewable energy sources by providing $9 million towards Mackay Sugar Ltd.

Announced today, contracts have been issued for Mackay Sugar to construct a $120 million power plant that will generate more than 90 megawatts of electricity from sugar cane waste.

Minister for Mines and Energy Stephen Robertson said up to 30 per cent of the city of Mackay’s annual electricity supply may be generated through the innovative cogeneration project at Mackay Sugar’s Racecourse Sugar mill and refinery.

“This is an innovative, clean energy project that will deliver important benefits for the company, the city of Mackay and the environment,” he said.

Mr Robertson said Mackay Sugar plans to replace the existing plant at the Racecourse Mill to generate enough clean, renewable power each year to achieve energy self-sufficiency and export electricity to the local grid.

He said a new steam turbine generator to be installed at the mill will use bagasse (stored sugar cane waste) more productively than its traditional use in low efficiency boilers.

“When operational, the plant will deliver 65 megawatts of thermal power to the Racecourse sugar mill and refinery thereby achieving energy self-sufficiency for the facility,” he said.

“At the same time, it will deliver 27 megawatts of clean renewable energy to the Mackay city electricity network continuously for 50 weeks a year.

“That’s approximately 30 per cent of the city’s current electricity consumption.

“It means we will replace electricity produced using fossil fuels with clean renewable energy.

“That’s a win for the environment because this carbon-free energy will reduce greenhouse gas emissions by approximately 200,000 tonnes each year.”

Mr Robertson said the Mackay Sugar cogeneration project, jointly funded by the Queensland Office of Clean Energy, may also prove an important contributor to the long term viability and competitiveness of the sugar industry in the region.

“In these tough economic times, the sugar industry is seeking opportunities to combine production of sugar and renewable energy through cogeneration, reduce costs, and diversify into complementary production such as ethanol.

“The Mackay Sugar project offers a significant opportunity to drive the growth of renewable energy use and production in the sugar mills of regional Queensland.

“It solves many of the common challenges with innovations in boiler efficiency through higher steam levels, plus better management of bagasse stockpiles that will help reduce costs.

“On completion, the Racecourse Mill project will provide opportunities for this approach to be adopted at other sugar mills throughout Queensland,” he said.

Mackay Sugar anticipates the new cogeneration plant at the Racecourse Mill should be ready for commissioning in March 2012.

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