Rubbish fuel plant close

Holden's announcement of the formation of a company to commercialise the waste-to-ethanol process could yield fuel as soon as 2013. That's the news from Holden's Director of Energy and Environment, Richard Marshall (pictured).

Holden Chairman and CEO Mike Devereux announced the formation of the company Flex Ethanol Australia today in Melbourne. The local GM arm will provide seed funding for the company (via its US parent company). Caltex and perhaps a waste management company or recycling company are expected to join Holden as partners in the new operation.

Holden entered into an agreement with the Victorian Government to explore the establishment of a waste to ethanol operation in 2008. Devereux stated the establishment of the new company was an important step towards building "Australia's first commercially viable second-generation ethanol plant".

Marshall, Holden's highest ranked 'green' exec explained the formation of the company was necessary now for the project to move beyond the theoretical stage.

"You need a single entity to go out and deal with people. We've got to the stage now where it's too difficult to deal with the consortium -- Vic Government, Caltex, Holden, Coskata and so on -- under an MoU (Memorandum of Understanding). We've got to be able to get down and write contracts and engage companies directly. That's why we need a single entity.

"Its [Flex Ethanol Australia] role is to take this process through the 'gates' it's got to go through. It's just like a vehicle program -- you've got to get green lights at all the gates and at some time next year [2011] we will get to that final investment decision.

Marshall says that if appropriate time lines are met, a plant could be producing commercial quantities of fuel by 2013. At this stage, however, no site has been announced, nor any development approvals commenced.

Using the Coskata gasification process, the plant would convert municipal waste and other feed stocks such as discarded tyres to ethanol. Around one million tonnes of waste produces around 200 million litres of ethanol, Holden claims. By way of reference, Melbourne currently produces around 3 million tonnes of municipal waste each year.

Marshall stated plant location would be determined on a balance of waste transport costs and proximity to existing fuel refining infrastructure. He says the Coskata process requires only basic sorting of rubbish. Essentially the plant can take waste straight from residential wheely bins.

Feedstocks are balanced for appropriate energy output, he said. Normal household waste typically offers a low energy yield.

Marshall says that Australia's largest cities could each support one or two plants each. Currently Australia's ethanol production is based on crops or direct crop byproducts. A waste-to-fuel plant producing 200 million litres of ethanol per annum would increase Australia's current production by more than 50 per cent.

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