Australia’s largest Wheat Processor installs gas-fired CHP at New South Wales site
Manildra Group, Australia’s largest wheat processor and ethanol manufacturer, is undertaking an A$190 million project to transition from coal-fired boilers and gas boilers to two behind-the-meter high-efficiency, gas-fired combined heat and power plants at its Nowra plant.
The two plants will produce up to 100% of the electricity required at the site. The Manildra Group produces premium food and industrial products from wheat glutens, wheat starches, and syrups to ethanol and animal stockfeed at the Nowra plant.
The new plant will supported by drawing on an $85 million CEFC investment to exit coal at its primary manufacturing plant. The $190 million project is also financed by a $95 million commercial debt package which is supported by a $50 million guarantee from Export Finance Australia.
In addition, Manildra Group has successfully registered the project with the Clean Energy Regulator to generate Australian Carbon Credit Units.
The cogeneration systems will reduce emissions at the plant by approximately 40%, an estimated 332,000 tonnes of CO2-e annually. Engineering consultant GHD says it will reduce the emissions intensity per tonne of flour throughput from 0.62 to 0.36t CO2.
“Installation of the combined heat and power plant is the first stage in Manildra Group’s transition to low carbon manufacturing,”
CEFC CEO Ian Learmonth said. “The company will actively investigate green hydrogen to power the plant in the future, as well as more conventional renewable energy sources as electrification of industrial steam becomes more economic.”
CEFC is providing A$85 million for the project on behalf of the Australian Government. The project is also financed by a A$95 million commercial debt package, supported by a A$50 million guarantee from Export Finance Australia. It is registered with the Clean Energy Regulator.
Learmonth added, “In our efforts to reduce greenhouse gas emissions and reach net zero, Australia must put increasing focus on those harder to abate sectors of the economy such as industry and manufacturing. Domestic manufacturing poses a significant decarbonisation challenge. As the world steps up its focus on emissions reduction, carbon intensive fuel sources are becoming less economic. The Manildra Group is a globally competitive, family business that recognizes the financial prudence of long-term investment in lower carbon fuel to power production.”
