NQBE Joins Hands with China's GFHI to Build $500 Million Biomass-to-Energy Project in Australia

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Researched by Industrial Info Resources Australia (Perth, Australia)--North Queensland Bio-Energy (NQBE) Corporation (Queensland, Australia) signed a memorandum of agreement with equity partner Nanning Good Fortune Heavy Industry Company Limited (GFHI) (Nanning, China) in September 2013 for the project known as NQBE. The sugar/ethanol/power generation project is the first biomass-to-energy project under development in Ingham, Queensland.

"NQBE is obviously delighted to have reached an agreement with GFHI, which will allow the project to proceed this year and for the facility to commence operating in June 2016, in time for that year's sugar cane harvest," said Robert Carey, Chairman for NQBE.

Early site works, including earth works, were slightly delayed due to joint venture (JV) issues with previous JV partner Damphur Sugar Mills (DSM) (New Delhi, India), as well as issues raised from the Cultural Heritage Management Agreement. However, with NQBE's strong solidarity with shareholders and approvals from the local council, the project is on track for construction by end of the year.

The project is expected to have a capital value of $500 million and will be first of its kind in Australia to be developed as a multi-purpose sugar mill. Upon completion, the biomass-to-energy plant is expected to produce approximately 335,000 tonnes of sugar per year, have a flexible ethanol distillery capacity of between 90,000 and 250,000 litres per day. It will produce between 85 and 105 MW of renewable electricity.

The project will feature installation of a steam turbine generator and three biomass-fired boilers, which will be fed by 2 million to 2.5 million tonnes of cane per season. With a significant number of mining projects under development, the project will benefit the North Queensland region by producing the required amount of electricity.

Construction is set to begin by the end of the year, and project completion and commercial operations will begin by 2016.

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