A Korean company has a proposal with the NSW Government to built a $90 million ethanol plant in Deniliquin.ZOE MCMAUGH December 6, 2013 4:56am
Deniliquin could be home to a multi-million dollar ethanol plant by as early as 2015.
Plans for the $90 million Deniliquin plant, which would use locally sourced grains to produce fuel and other by-products, has been lodged with the NSW Government Planning Department.
Korean company Dongmun Greentec, an Australian branch of Dongmun IRS Co Ltd, has earmarked a 147.18ha industrial block on the Barham Rd as the preferred site for its proposed plant.
The plant is expected to generate an estimated 1250 jobs (direct and indirect) and inject $200 million into the local economy per year.
It would create between 40 and 50 permanent jobs and approximately 500 jobs during construction.
The development of the plant is now subject to formal approval from the NSW Government. Because the development is more than $20m, it does not require local government approval.
If given the go ahead, Dongmun Greentec president Sung Ho Joo, who was in Deniliquin this week, said construction would begin by May or June next year.
Mr Joo said the plant would also require a large host of support staff in areas including transport, spare parts, repairs and fuel distribution, and admitted many of the permanent staff members would have to be experts brought over from Korea.
The plant is also expected to provide a stable local market for the region’s wheat growers.
Mr Joo and a delegation of the engineers spent three days in Deniliquin this week, discussing the proposal with Deniliquin Council representatives.
The Dongmun Greentec president said he would return to Deniliquin next month, which will be his sixth visit, to continue discussions.
Riverina’s reputation as the foodbowl of Australia is what led the company to Australia to investigate the region for his project, Mr Joo said.
He also said Deniliquin Council’s enthusiasm and support was a main driver in the decision to build in Deniliquin.
‘‘We contacted several councils and Deniliquin was the most sincere,’’ Mr Joo told the Pastoral Times.
‘‘Their support is more than what we expected and we were very impressed.
‘‘We chose this region and Deniliquin because it is a major producing area.
‘‘There is also enough water here and all the other infrastructure we need, like major roads.’’
The only infrastructure lacking for the company is natural gas, which Deniliquin Mayor Lindsay Renwick said should be a priority for the NSW Government.
‘‘Natural gas is essential to this business,’’ Cr Renwick said.
‘‘Even if we only connect Deni from Finley, it will still service about three-quarters of the plant’s needs.
‘‘Without it, Greentec will have to truck gas to Deniliquin and that is a backward step.
‘‘This development is of significant importance and one the state government needs to be involved in.’’
Mr Joo confirmed the daily gas requirement for the plant would be the equivalent of two fully loaded B-Double tankers.
While Mr Joo said the development would go ahead with or without a natural gas connection, he said a connection was important for the long term viability of the plant.
The proposed plant will be large enough to produce 110,000 kilolitres of ethanol each year and up to 92,000 tonne of dried distilled grain.
By-products created at the plant will include fertiliser and syrup used in livestock feed.
Mr Joo estimates the plant will need 300,000 tonne of low-grade grain each year, which he said would be purchased regionally.
The grain is cleaned and steamed in a multi-step process to create liquid and solid ethanol products.
The plant infrastructure will include several grain storage silos, a wastewater treatment facility and a process water area which will be irrigated with treated wastewater as part of a recycling system.
Mr Joo said a workshop and plant machinery would be first to be built.
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