Wagin may be one of the first towns in the Great Southern to have a sustainable energy plant that powers community food projects.
And, it could lead the way for other regional towns to follow suit.
The State Government has announced $1.15 million from the Low Emissions Energy Development Fund will be put towards developing a sustainable food processing plant that’s been earmarked for the town.
Local grain merchant, Morton Seeds, would run the Wagin Food and Fibre Processing hub on a waste product that normally goes into landfill.
The co-generation plant would include a desalination plant and a 125 tonne recirculating tank system in which barramundi would be farmed.
The plant would generate power by burning oat husks, which are a waste product from Morton’s operations, to make a synthetic gas.
That gas would run a generator which would drive a turbine to generate electricity.
The company will use nearly 50 per cent of the electricity generated to run its mill, with the leftover electricity to power community-based regional development projects including a desalination plant and fish farm.
The groundwater processed at the desalination plant would be used in the barramundi farm which would provide a food source for the town.
Increasing costs
Morton Seeds managing director, Johnny Morton, says increasing electricity costs have forced the company to look at sustainable energy sources in order to be competitive in the global market.
“We’re up against a depreciating Euro and Sterling and an appreciating Australian dollar,” he said.
“We’re finding the Europeans coming into the South East Asian market are being very aggressive and they’ve got a competitive advantage that they didn’t have a few years ago.
“So, we’ve really got to look at every possible way we can to get more competitive.
“We just wouldn’t be able to compete against the other overseas competition unless we can minimise our costs.”
Mr Morton says the Federal Government’s new carbon tax and the State Government’s electricity price increases are impacting on the way businesses operate, forcing them to look to cheaper electricity sources.
“Like everybody else we’ve been advised that our power costs are going to go up and that’s on the back of quite significant increases over the last two years,” he said.
“A lot of these increases we can’t pass on to our customers so, really at this stage, we will be able to get some renewable energy credits by using biomass as an ingredient for the power plant.”
Blueprint
The hub is expected to be used as a potential blueprint for renewable energy plants to be built in other towns.
Project support officer Danielle Perrie says other towns could adapt the technology to suit their individual needs.
“Any town that suffers from salinity and rising groundwater can take those and mix it with other components they have,” she said.
“I guess that’s the reason we’re going for regional funding because we believe it’s regionally significant.”
She says the project would also encourage industry to move into the region which could be a step toward decentralising industrial development.
“It’s designed to attract industry, with cheaper power and cheaper water, to Wagin as a spot to set up industry as well as lots of available land which is an issue for urban developers as well,” she said.
Wagin shire president, Phillip Blight, says the State Government has rated the project well.
“The State Government are looking at the project and they rate it seriously,” he says.
“What they said in this particular funding round [is] that the financial and technical due diligence rated the project well, identifying that risks can be managed.
“I thought that stacked up pretty well as a statement.”
The project is applying for funding from the Federal Government.
It was rejected last year but another application has been made which is hoped to secure additional funding towards the project.
The project is also waiting on an environmental approval.
