CONSTRUCTION of a $125m wood-pellet production plant could be under way by early next year after a Queensland-based renewables company confirmed its eagerness to invest in the Mount Gambier region.
Altus Renewables managing director and chief executive officer Ian Sandeman told The Border Watch yesterday the production plant would take around two years to build and could be operational by early 2021.
Mr Sandeman, who was in Mount Gambier to visit Independent Member for Mount Gambier Troy Bell, said the construction phase of the project would provide jobs to around 300 people, with around 75 permanent positions available after completion of the plant.
Contractors included, around 250 positions would be available once production started.
“We have completed an informal feasibility study which will now be followed up by a formal study,” Mr Sandeman said.
“After its completion in around September, we would be in a position to make a formal proposal to our board of directors.
“If everything goes according to plan, we could be starting in January.”
Mr Sandeman welcomed Mr Bell’s bioenergy positioning plan, saying it was an important policy to drive investment in the region.
“Troy’s focus on the forestry sector and bioenergy generation for the region have in a sense sped up our own plans for local investment,” he said.
“Our agreements for storing and loading product at the Port of Portland are in place and we already have offtake contracts.
“As a renewable energy fuels producer, we would not be here if it was not feasible.”
Mr Bell said his bioenergy plan – which includes a $20m biomass fund to grow local industries – showed he was “serious about driving investment to the region”.
“You have to put real money on the table to draw investment to our region,” he said.
“A $20m investment pledge makes good sense if the return is a $125m dollar wood-pellet production plant.
“This is about the region’s long-term investment and job security needs.”
However, Liberal candidate for Mount Gambier Craig Marsh warned “rationality should prevail”.
Mr Marsh said although he supported bioenergy development and job creation in the region, there was a difference between “loyalty to the individual and being part of the government”.
“An independent would not be able to get a substantial project like the bioenergy plan off the ground,” he said.
“For that reason we need a Liberal Party representative in Mount Gambier.
“At the end of the day decisions are made in the party room and not on the cross bench.”
