Bioenergy Proposal

The Briefing Paper “Kangaroo Island Energy – An evaluation of integrated energy opportunities from plantation timber biomass” (attached) has identified the most suitable technology available that meet some diverse drivers / challenges we have as an Island and identifies that there are some significant opportunities here for the Community and Council to consider.

It is believed that we are at the point where a full feasibility study, to produce an investment ready bankable project document, is the next step. This will require somewhere in the region of $1-1.25M to carry out and it is proposed that the detailed pre-feasibility work carried out to date will provide sufficient depth of information to allow the proponents to approach the appropriate State and Australian Government Agencies and give them confidence to provide funding to carry out this work. It is noted that this initiative aligns very closely with their objectives for delivery of secure and reliable electricity, improving energy productivity, exporting renewably energy and developing the potential for the hydrogen economy.

It is therefore expected that we will be able to look to both State and Australian Governments for funding for the full feasibility study.

In the process of pre-feasibility several contacts have resulted with outline discussions around potential for funding / co-investment in this project and, with the resolution of Council on 13 February 2018:

Moved Cr S Kauppila                                       Seconded Cr L Turner
That Council concur with the assessment of the Chief Executive Officer (in conjunction with Environmental Energy Australia) that there is a business case for seeking funding for a full-feasibility study on the design, construction, commissioning and operation of an integrated bio-energy project for Kangaroo Island and direct the CEO to continue working with EEA with the intent of seeking confirmed external funding for such work, reporting back when funding sources have been identified for further consideration and direction.
CARRIED. 4 For 3 Against                               Minute: C42:2018

The CEO will continue to work with EEA and other technology providers and consultancies to secure funds for the full feasibility study, return to Council for consideration/direction as required and then to progress this as a key project to completion and the production of a full, bankable document. It is anticipated that running concurrently with this will be the identification of potential co-funding equity partners and / or commercial lending facilities that will enable the project to proceed should the full feasibility study confirm the works carried out to date in the pre-feasibility works.

It is anticipated that the full feasibility study will take 6-9 months to complete and therefore the project has the potential to be initiated in August / September 2018.

It is hoped that sufficient funding will be able to be sourced to keep Council input to an “in kind” contribution of CEO time only and not require a cash component. Hours will be recorded and held to be capitalized into equity should the project proceed - whether Council choose to invest additional cash or otherwise to take a participating equity position.

All Questions are welcome and answers will be shared in the Frequently Asked Questions document that can be found under related links on this page.




Kangaroo Island Council |43 Dauncey St (PO Box 121) KINGSCOTE SA 5223
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