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Biomass Action Group
30 June 2009

Environmental Protection Authority
 

Submission for Mid-Term Audit of the Forest Management Plan 2004-13: Opposing Use of Native Forest as Fuel for Biomass Power Plants 

SUMMARY AND RECOMMENDATION: There is demonstrable risk that the Forest Management Plan 2004-13 will be applied for supply of unique native forest resource as fuel for biomass power plants. Use of native forest as fuel for biomass power plants threatens to cause further depletion of State forest ecosystems in a similar manner to depletion of State forest through woodchipping of marri and karri. It is recommended the EPA oppose use of native forest as fuel for biomass power plants and apply a condition to the Forest Management Plan 2004-13 preventing use of native forest as fuel for biomass power plants. 

I write on behalf of the ‘Biomass Action Group’, an informal association of persons in the Manjimup and Pemberton area with agribusiness, tourism, conservation, property and other interests in regard to a proposal by WA Biomass Pty Ltd for a 40MW biomass power plant to be located at Diamond Mill south of Manjimup. We are concerned the Forest Management Plan 2004-13 will be applied to large scale exploitation of unique native forest ecosystems to supply logs and other wood resource as fuel for biomass power plants. 

Members of the Biomass Action Group made submissions on the ‘PUBLIC ENVIRONMENTAL REVIEW FOR BIOMASS POWER PLANT, DIAMOND MILL, MANJIMUP’ in February 2008 which included submission on ‘Impacts of expansion at Diamond Mill based on wood fuel from Karri forest’ which is copied below in an Appendix to this submission for the mid-term audit of the Forest Management Plan 2004-13. The submission copied in the Appendix referred to the misuse of the terms native ‘forest residue’ and ‘forest waste’ - now applied to fuel for biomass power plants - which previously justified production of over 500,000 tonnes per annum of marri and karri woodchips from the magnificent State forest surrounding Manjimup and Pemberton. There is substantial reason to mistrust government agencies and politicians who use and abuse these terms in relation to our precious native forest. 

In response to demonstrable public interest and concern that a biomass power plant located at Diamond Mill could lead to use of adjacent karri, marri and jarrah resource as fuel for the power plant, the EPA applied condition 6-1 that “The proposal shall only use waste from Eucalyptus Globulus and Pinus Radiata plantations as a fuel source.” and the Minister for Environment accepted the condition. However, this public interest and concern will persist if a biomass power plant is located at Diamond Mill at the hub of the road network for the previous ‘Marri Woodchip Project’ in State forest. WA Biomass Pty Ltd is a consortium of Babcock and Brown Limited related entities, since our February 2008 submissions on the PER for the project at Diamond Mill, Babcock and Brown Limited has collapsed into the care of administrators, with massive outstanding debt, and has been delisted from the ASX.  We believe it is probable Babcock and Brown related interests will attempt to sell the ‘approved project’ at Diamond Mill, and that due diligence by potential buyers will find the project is not commercially viable based on transport of Eucalyptus Globulus and Pinus Radiata on public roads from up to 100 kilometers distant and they will pressure the State Government for use of adjacent karri and marri as fuel. The Forests Products Commission and the Department of Environment and Conservation support use of karri and marri ‘waste’ and ‘residue’ as fuel for biomass power plants; we urge the EPA to strongly oppose use of native forest as fuel for biomass power plants. 

Since our February 2008 submission to the EPA opposing possible use of karri and marri fuel for the proposed biomass power plant at Diamond Mill, it has been publicised that the Forest Products Commission are in discussion with Griffin Energy for supply of 250,000 tonnes per annum of jarrah and marri logs to be burnt as biomass fuel at the Bluewaters Power Station near Collie. The discussions include a further 150,000 tonnes of jarrah and marri logs being available if required by Griffin Energy. We are aware the Wilderness Society, Western Australian Forest Alliance and the Conservation Council of WA wrote to the Minister for Environment in May 2009 objecting to this potential supply of jarrah and marri to be burnt as biomass fuel and we strongly support their objections. We urge the EPA to oppose the use of jarrah and marri as biomass fuel at the Bluewaters Power Station and to advise the Minister for Environment accordingly. Beyond our general concern at depletion of State forest for use as biomass fuel, we are specifically concerned use of native forest as fuel at the Bluewaters Power Station will serve as a precedent for use of native forest (karri and marri) as fuel at the proposed 40MW biomass power plant at Diamond Mill. Given it is unlikely Babcock and Brown related entities will proceed with the 40MW biomass power plant at Diamond Mill using 380,000 tonnes per annum of Eucalyptus Globulus and Pinus Radiata, that plantation resource should be offered to Griffin Energy for use as biomass fuel in the alternative to native forest. 

Biomass Action Group
www.nobiomass.com
 

……..  APPENDIX  ……… 

Excerpt from submission to EPA on PUBLIC ENVIRONMENTAL REVIEW FOR BIOMASS POWER PLANT, DIAMOND MILL, MANJIMUP by Neil Bartholomaeus, 25 February 2008  

5.    Impacts of expansion at Diamond Mill based on wood fuel from Karri forest 

There are grounds for concern the Karri forest will be used as fuel for biomass power generation at Diamond Mill:

·         the Minister for Forestry on 29 November 2007 in answer to Parliamentary Question 5603 said Karri, Jarrah and Marri will be offered by tender to energy markets;

·         in a 25 January 2008 letter responding to private questions on this, the Minister for Forestry said “I understand that the Manjimup biomass plant in question does not intend, under its current application process, to utilise fuel from native forest residues. Should the project ever reach a stage where it wished to expand its operation, that expansion would be subject of a further assessment process.”;

·         it is reasonably foreseeable that such energy generation using Karri, Jarrah and Marri will be conducted within the Diamond Mill precinct near Manjimup, taking advantage of the extensive network of roads previously used for the ‘Marri Woodchip Project’, for transport cost savings; and

·         it is reasonably foreseeable that Karri, Jarrah and Marri will be burnt in the proposed Biomass Power Plant at Diamond Mill, as a commercially advantageous variation to the 380,000 tonnes per annum wood fuel mix for the 40MW capacity, and for expansion beyond 40MW output. 

In the Minister for Forestry’s answer to Parliamentary Question 5603 he said Karri, Jarrah and Marri ‘forest residue’ and ‘forest waste’ will be used for energy markets. These ‘forest residue’ and ‘forest waste’ terms are precisely the same terms that were used to justify the notorious 'Marri Woodchip Project', where Marri was described as residue and waste from clear felling, and millions of tonnes were squandered as woodchips. Now, Marri is in demand for furniture and flooring; exemplifying 'forest residue’ and ‘forest waste' is misused terminology.  

The language of the Minister for Forestry of 25 January 2008 re “Should the project ever reach a stage where it wished to expand its operation, that expansion would be subject of a further assessment process.” is reminiscent of the ‘staged’ development of the Wagerup Alumina Refinery which has devastated the previously rural township of Yarloop. Neither the EPA nor a ‘community reference group’ (Public Environmental Review page 203) saved Yarloop. The negative impacts on public health (2 above), on agribusiness (3 above) and the local agribusiness and tourism economies (4 above) will compound if biomass power generation expands at Diamond Mill.

The Forest Products Commission 2006-2007 Annual Report at page 21 states:

"Bioenergy development

The Commission is actively working with a number of parties to develop and promote renewable energy opportunities."

"Tender process for residues

The Commission continues to work actively to finalise markets for native forest derived residues. Due to increasing enquiries particularly from bioenergy companies, the Commission decided to call for tenders. It is expected that tenders will be requested late in 2007." 

The Forest Products Commission doesn’t appear to have offered the tender for Karri, Jarrah and Marri ‘residues’ yet. It is possible they will hold that until the Biomass Power Plant at Diamond Mill has approval of its Public Environmental Review based on Tasmanian bluegum and pine, and then the tender could be offered for a shift in fuel resource mix and/or expansion beyond 40MW generation capacity.  

In addition to exacerbation of impacts from pollution, expansion at Diamond Mill based on fuel from native forest will evoke massive controversy similar to that which surrounded the notorious ‘Marri Woodchip Project’. Such controversy will further discourage tourism and eco-tourism based on the Karri forest, and also discourage new residents seeking ‘lifestyle’ based on the Karri forest, for which there are several developments progressing in the Shire of Manjimup.

Recommendation 7:  The EPA should ask the proponent of the Biomass Power Plant at Diamond Mill if it has intentions of expanding beyond 40MW generation capacity at Diamond Mill, and if it does, the EPA should request a supplement to the Public Environmental Review providing preliminary information on environmental impacts and management of impacts beyond 40MW capacity.  

Recommendation 8:  The EPA should ask the proponent of the Biomass Power Plant at Diamond Mill if it or associated companies have approached the Forest Products Commission enquiring about access to native forest derived fuel, and if so, whether the proponent envisages use of native forest derived fuel within the wood fuel mix for up to 40MW generation capacity, and/or for expansion beyond 40MW capacity. The EPA should verify the proponent’s response with the Forest Products Commission.

Recommendation 9:  The EPA oppose use of Karri, Jarrah and Marri from native forests as fuel for biomass power generation at Diamond Mill and elsewhere in WA.

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