Proposal to Update Pre-Feasibility Study June 2013 - …ecowaste.com.au/content/EW_Proposal_to_Update_PFS… · · 2014-12-18Proposal to Update Pre-Feasibility Study June 2013 Pre-Feasibility

Proposal to Update Pre-Feasibility Study June 2013

Pre-Feasibility Study #2 – to explore the potential to establish a BioHub to service the Dubbo Region

To optimise Dubbo’s strategic needs and advantages in the emerging Biomass Economy

A community based project being co-sponsored by Orana RDA and Renewed Carbon, with significant stakeholder contributions from:

(This will be a list with logos etc. Some 10-20 individual stakeholder participants currently expressing interest to participate/contribute

proportionally)

November 2014

Updated Proposal – Nov 2014 Page 2

1. Introduction and Work to Date

Following an initial community meeting 13/09/12, an initial Pre-Feasibility Study was commissioned by OEH (SA program) and Renewed Carbon, “to assess the potential to establish a BioHub to service the Dubbo Region”.

This was delivered June 2013 and was based on all the best information available at the time (copies can be downloaded from http://www.rdaorana.org.au/publications.htm#dubbo-biohub).

This June 2013 PFS:

i) Outlined in some detail what services a BioHub was proposed to offer to the region and supported this background with explanations of the emerging bio-economy, and the economic drivers that underpin this concept. (A more detailed report on the national BioHub concept (originally prepared for DIISRTE) can be downloaded from http://www.rdaorana.org.au/publications.htm#dubbo-biohub).

ii) Identified and quantified potentially available sources of suitable biomass within approx. 50km radius. (Because of a limited local forestry and “no-till” cropping etc., the actual availability of biomass was limited/marginal, and the proposed BioHub operations were to be supplemented by sourcing suitable biomass from outside the proposed 50km catchment radius).

iii) Identified considerable demand for locally produced, bioproducts, including:

Specialty biochar based, tailor made, all-in-one fertilizer products and other biochar based soil productivity improvers and ameliorants. (However, such biochar based fertilizer products needed to be developed and tested before local grower demand could be fully commercialised);

Bioenergy customers

iv) Presented a range of strategies to achieve >90% landfill diversion of the region’s urban waste streams, especially the 50/60% currently presenting as organic/biomass, by focusing on establishing a viable pathway for all recovered materials to be presented back to the Productive Economy in a form entirely suitable as supplements/replacements for virgin resources.

(One criticism of this proposal was that too much of the viability for the proposed BioHub rested on the potential gate fees that might be paid by Dubbo City Council as an alternative to traditional landfill, and this in turn was heavily dependent on the proposed market for biochar based fertilizers being confirmed and fully commercialised).

Since the PFS (June 2013) was released, Renewed Carbon has been continually working with both the initial stakeholders, and a wide range of new parties, which has unearthed a wide range of new and relevant information which it is proposed would be addressed in detail in a PFS #2.

http://www.rdaorana.org.au/publications.htm#dubbo-biohub



2. Summary of New and Pertinent Information, Data and Collateral Issues that have Emerged since June 2013

2.1 Catchment limits

The original PFS set a 50 km catchment radius thinking in terms of small vehicle/small truck deliveries. In identifying considerable new sources of potentially suitable biomass, and discussing specific transport and logistics options with major local operators, it has become obvious that, subject to detailed design of the particular transport, logistics and handling systems adopted, the catchment for the proposed Dubbo BioHub should be extended to some 300 km radius for biomass sources, if appropriate logistics and handling systems are developed in parallel. Such sources would be in addition to the smaller vehicle delivered sources addressed in the original PFS, and thus have the potential to greatly improve the viability of the BioHub as originally envisaged June 2013.

This crucial information makes such biomass supplies available from as far away as:

Cobar in the West; Bourke/Walgett/Moree in the North; Tamworth/Armidale in the East; and Lithgow/Cowra in the South.

This issue alone could make some 60-80% of the potential biomass available to the proposed Dubbo BioHub facility from outside the original 50 km radius, a collateral advantage of this outcome will be that the percentage of material from local urban waste streams might now be only 7-12% of total BioHub inputs (even if the actual urban waste volumes remain as originally proposed ) (see 1. iv) above).

2.2 Staged Development & Commercial Implementation

The much increased catchment radius proposed for this PFS #2 (some 300 km) for a wide range of potential biomass sources will require a number of contingent, or “chicken and egg” issues and possibilities to be systematically addressed.

For example:

i) To the North and West of the currently proposed BioHub facility in Dubbo, one of the major potential sources of biomass could be INS/Woody weeds (Peneplain/Cobar) or Arid Zone Timbers generally from LALC lands and other public and private dry land farms, and even mallee (scrub and plantations) as a growth industry.

These supply lines will need to develop incrementally, to maintain supply and new processing capabilities in balance. This may well be achieved (subject to the proposed detailed logistics study) by initially establishing “landings” or “local consolidation points” in these areas, to supply biomass to the already established processing facilities, centred on Dubbo. But as the enterprise develops, the main value adding could be established on these local sites and include saw mills, biomass sorting, screening and size reduction and actual charcoal manufacture (with local bioenergy sales).


ii) To the East, animal husbandry wastes, and manures etc. could be accessed from the Tamworth/Armidale/Inverell areas initially, to support the proposed, tailor made, all-in-one fertilizers capability, but, again, once the market demand and supply chains are established, dedicated “feeder” BioHubs could be justified and established in these regions.

iii) And to the South and South East, “feeder” sites from Lithgow/Bathurst/Cowra might produce surplus biomass, especially forest residues that could again benefit by having local biomass receival/pretreatment sites established initially to supply a centralised site at Dubbo, but subsequently developing into self contained BioHub sites as the supply lines are established and confirmed.

NB: This BioHub network development approach was contemplated (DIISRTE – July 2013, p. 57, copy available from http://www.rdaorana.org.au/publications.htm#dubbo-biohub) and will be fully investigated and assessed in this proposed PFS #2 within the proposed categories:

Feeder BioHubs – temporary, (even mobile) seasonal or even permanent sites and capabilities, usually located close to a particular biomass source, with the primary aim of optimising initial transport and logistics, but later, many becoming a stand alone or “standard” BioHub with an interconnected supporting network.

Standard BioHubs – fixed regional facilities, established to receive and process regionally generated biomass materials for highest net resource value products, for local, regional and network based markets.

Producer BioHubs – standard BioHubs that are located in critical locations where local demand for selected bioproducts is well in excess of the local region to supply all the necessary (quantity and quality) biomass inputs, and so relies on biomass supplies from other more distant sources. (The proposed Dubbo BioHub is anticipated to present as a Producer BioHub as a result of the proposed PFS #2).

2.3 Recently identified additional biomass supplies

As a result of extending the potential catchment to 300km and the completion of more independent research, the following supply opportunities have emerged:

i) White cypress infestations

The National Resource Commission (NRC) has been studying active and adaptive management options to address the white cypress infestations in the Brigalow and Nandewar State Conservation Areas. These active management options have direct applicability for such white cypress infestations on all other private or public lands.

The NRC research identifies the problem presented by all white cypress infestations wherever they occur (other public or private lands), and has developed systematic thinning management plans to address the issue for ecological, environmental and native species/vegetation restoration outcomes.



The recent NRC work also estimates the quite considerable costs of implementing such a program, which they are looking to at least partially offset by putting the thinned material to some appropriate commercial use.

This white cypress, and any other species identified by NSW Forests/NRC could benefit from a BioHub being available to offer the full spectrum of cost recovery/value adding options, from sawlog selection to charcoal, biochar and bioenergy.

ii) Arid zone timbers

The original PFS introduced the “woody weed”/INS issue (3.5.3) (copy available from http://www.rdaorana.org.au/publications.htm#dubbo-biohub) but the expansion of the study catchment to 300km now brings this material into sharp focus.

Whilst all these materials only arise as a result of PVP implementation, approved and administered by LLS, the commercial and sustainability outcomes that could see such materials allocated to their respective best and highest resource use would be greatly expedited with the availability of regional BioHub capabilities. Potential products and end uses could include high grade timbers (instrument/furniture manufacturing), metallurgical charcoals and reductants, biochars and bioenergy.

iii) Resistant weeds (cropping sector)

An issue completely overlooked in the original PFS was the resistant weed issue that now affects the general cropping sector. The issue centres on the fact that most annual weeds that can degrade cereal crops (eg. rye grass) are now almost totally resistant to the usual herbicides. At its worst, whole sections of crops can be ruined, or at least the crop needs to be “cleaned”. NSW DPI, and LLS are proposing a number of strategies to address the problem, all of which would benefit from access to a local BioHub, especially the strategy of removing all loose straw with entrained weed seeds post harvest, and having all the removed material actively sterilized. A BioHub could offer to convert all such material into biochar/bioenergy, thus recovering tangible value from the otherwise troublesome material (see 2.5 below – hemp as a valuable “break” crop).



iv) Animal husbandry wastes

Intensive farming operations often experience initial planning approval and/or subsequent operational problems in relation to manures and dead animals etc. Whilst this is not a major activity within the 50 km radius of Dubbo, within the expanded 300km radius a number of such operations come into range, and although dedicated logistics arrangements would need to be established , this sector can, at worst, have a serious waste problem or manages the issue by simple spreading to land (dissipating the optimum nutrient and energy values), whereas processing at a BioHub would value add these materials to their very fullest potential as ingredients into tailor made fertilizers and/or energy potential.

v) Miscellaneous Ag and forestry wastes and residues

Again, whilst this issue was addressed in the initial PFS, the 50 km radius was very limiting. At 300 km, a wide range of such materials come back into full focus, especially cotton trash.

vi) Urban wastes

The original PFS focused on the recovery of the various types of organic/biomass materials generated within the 50km radius, but the expansion of the radius to 300 km means that a much wide range of biomass material comes into consideration, including, but not limited to:

C&I wood wastes (pallets/crates etc.); Domestic garden/green wastes; Consolidation of secondary plastics for value adding; and Offering consolidation of PS/EPR materials. as a collateral benefit

Since the original PFS, Renewed Carbon/RDA have consulted with DCC and the surrounding Warren Shire Council, Narromine Shire Council, Gilgandra Shire Council and Wellington Council.

These discussions have revealed that whilst the biomass fraction of their respective waste streams is an issue that might benefit from the establishment of the proposed BioHub at Dubbo, and that the potential economic benefits to the agricultural activities in their respective council areas would be positive, these councils are also keen to include, in the proposed transport and logistics research, strategies that might assist with the systematic separation, aggregation and access to markets for most other non-biomass materials.

The proposed scope (Section 4) has been expanded to specifically address this issue and opportunity.

vii) Mechanical fire reduction programs

Currently, the major strategy for load reduction in bush fire mitigation programs is back burning. Recently, as now practiced widely in California, the introduction of selected mechanical load/hazard reduction is demonstrating tangible ecological and commercial benefits.

An outcome of such programs, where they may be considered, will be a surfeit of biomass, which if fully value added as a systematic cost recovery strategy, can generate a whole range of collateral benefits.

With the proposed catchment radius extended to 300 km, this is a program area that may benefit from a regional BioHub facility.


viii) Agroforestry synergies

The extension of the catchment radius to 300km, subject to the development of the most cost effective and efficient systems and logistics, could offer synergistic support for the full range of agroforestry activities, including but not limited to:

– Shelter belt establishment and maintenance; – Riparian repair and maintenance/management; – Erosion control strategies and management; – Hobby farm plantings management, especially in the Cudgegong catchment; and – Ground water control and management.

Even the planting of dedicated energy crops may become viable with the availability of an existing local BioHub to process the yield for highest value bioproducts.

2.4 Extended range of bioproducts and off take possibilities

Since the June 2013 PFS was completed, a range of new bioproduct opportunities have been identified, or existing ones developed and elaborated:

i) Biochar based fertilizers tailor made for local growers (cropping)

Following the June 2013 PFS, Renewed Carbon started detailed work with a group of local broad acre cereal growers to develop the ideal, tailor made fertilizer product(s).

Renewed Carbon then engaged with UNSW to develop such products and undertake detailed product performance trials. Whilst this will ultimately be at least a 3 year program, the initial (half way – 18 months) report has established that (subject to final broad acre trials scheduled for April 2015) that this tailor made product outperforms (yield and/or value) the currently used synthetic high analysis products.

These products contain biochar products made from urban waste biomass and manures and deliver cost benefits, whilst maintaining or improving net crop yields. All the now currently available information needs to be included in an updated PFS.

ii) Metallurgical grade charcoal reductants

Since the June 2013 PFS this market opportunity has been developed to include major national end users as well as overseas export markets, which in light of 2.2 ii) above, now needs detailed inclusion in an updated PFS.

What has also emerged from recent studies by Renewed Carbon, is that when arid zone timbers are removed under PVP arrangements, many of the actual timber species are of highest value for instrument making and fine furniture applications.

In the past, these end uses have not proved to be commercially practical as a stand alone activity, due to the need for the activity to support the entire and complex supply chain. However, with the fully integrated approach that a regional BioHub will facilitate, the full opportunity is again viable, and this opportunity, for maximum value adding of such special timbers needs fully assessing and including in the next iteration of the PFS.


iii) Biomass brokering/trading/forwarding – Liquid fuels

BioHubs are proposed to initially offer products and services to address local needs and opportunities. However, as the title of this project reflects, each regional facility will have a role in the broader national biomass/bioproducts sector, and at the top of the emerging value adding “pyramid” is the “market pull” created by the need to support a national liquid fuels and jet fuel manufacturing industry. As with most agriculturally based industries, the finished product facilities are supported by raw material supplies from a very broad base of individual producers.

Each BioHub is intended to be in a position to process any received biomass, initially for local applications, but when a biomass surplus arises (seasonal fluctuations, disasters, inventory management etc.), each BioHub should then be in a position to forward/trade such biomass surpluses (with or without pretreatment/processing to a defined industry specification) to contribute a level of assured supply to such higher value/capital intensive refineries and end uses.

The provision of assured supply of specific /pretreated biomass to such higher order (non regional) applications is seen as a potential opportunity to diversify product manufacture throughout the year. For example, if a period of 3-4 months each year was dedicated to producing tailor made fertilizers for the autumn sowing seasons, the same lignocellulosic feedstocks could be supplied to regional “Biocrude” refineries for the other 8-9 months of the year, which in turn could provide assured biocrude supply to national jet/liquid fuel refineries/blenders. This issue will be specifically researched and confirmed in this proposed PFS #2.

The potential local and distant uses for wood pellet production also need to be fully explored.

This issue needs to be explored with the respective peak bodies and the results included in the next PFS.

iv) Bioenergy markets and end users

As highlighted Table 2-1, the most valuable use for biomass is in the production of specific bioproducts (columns E, F, G (and H & I)), for which all alternative (renewable) energy sources are unable to compete. But biomass processing to produce such bioproducts invariably produces heat/syngas as a major by-product of the process, and this bioenergy source needs to be applied optimally in every instance.


Table 2-1: Comparison of benefits and properties of non fossil sources

NB: Whilst <100yrs biomass can be converted to fulfil all the roles currently provided by fossil resources – there is nowhere near enough – so should be applied to highest and best uses – bioenergy as a by-product.

Since June 2013, Renewed Carbon has identified some quality energy off take customers in Dubbo, and these actual opportunities need to be scoped and included in the next PFS.

2.5 Processing Capabilities

The original PFS considered three basic nodes of process capability:

i) MSW (urban waste) receival and pretreatment;

ii) Organics/biomass drying/torrefaction/pyrolysis; and

iii) Finished fertilizer product blending for local use.


Figure 2-1: Block flow diagram for proposed Dubbo “producer” BioHub

Urban Wastes

•Residual MSW/C&I AWTRoad Base

− New polymers− Liquid fuels− Petrochemicals− Energy

products

Scrap marketsMetals/scrap 4-5%

Bioenergy

Biomass / Organics 50-60%

Waste or

ResiduePretreat Treatment/Conversion Products

Regional Arisings• Manures• Orchards• Viticulture• Straw• Forestry/INS• Other?

Inerts 10-15%

High Calorific Fraction 25-35%

Metallurgical charcoal

Soil amendments & fertilizer products

Tailor made fertilizer

production

Organics Processing• Compost• Torrefying –

interim products• Pyrolysis• Pelletizing• Milling

MSW

“supplementary”

activity

Core BioHub

function

How BioHubs Work

“First point of receival”, “receiver of last resort”

“Shandied” into finished

products

Since June 2013 further specialty nodes of process capacity have now been identified as necessary:

Hardwood pyrolysis to make metallurgical charcoals and reductants;

Supply systems to provide steam or syngas to energy customers;

Central facility heat/gas management systems to conserve and redirect all/any waste heat generated to highest and best use from time to time; and

Wood pellet production.

And in relation to the increased catchment radius of 300 km, to consider satellite sites or “landings” where biomass loads can be consolidated (and pretreated if necessary) prior to transport and or from which bioproducts can be distributed.

The proposed PFS #2 will include all the latest thinking and information and include a possible staged implementation schedule.


2.6 Collateral advantages and services that could arise if a regional BioHub was established

The establishment of a BioHub in Dubbo, to service an initial 300 km radius would not only provide the basic and direct services and products as outlined, but once fully operational, a range of collateral services and benefits could/would arise, most of which would not be feasible or practical on a stand alone basis.

i) Generic economic benefits – the concept of establishing a BioHub at Dubbo recognises and builds on Dubbo’s advantages as:

A major regional transport (road and rail) hub;

An inland port;

The major service centre for the region; and

The support centre for a series of satellite load consolidation sites and facilities to support the >300 km radius catchment.

ii) Extension services – Whilst a BioHub was initially conceived as a “first point of receival” or “receiver of last resort” for the various targeted biomass materials, subsequent stakeholder discussions have identified the need for and opportunity to provide a range of extension services, operating from the BioHub site (and any satellites) to harvest, pre-process or the establishment of various vegetation/land management services. Even the establishment and maintenance of specific energy crops.

Such extension services could be of crucial benefit to the agroforestry/woody weed/cypress management/hobby farm/orchard/winery sectors in managing sustainable but occasional biomass yields.

iii) Resistant weeds – Having access to a fully functioning and systematic biomass value adding BioHub in the region is likely to provide considerable benefit to the cropping sector, in the fight against the resistant weed issue – by providing additional management options.

iv) Hemp cultivation – Hemp has been identified as a very valuable new crop to be introduced into the normal crop rotations in the region. Hemp has also been identified as a valuable break crop in the battle against resistant weeds due to its root base and dense planting and crop height. Having a local BioHub could then provide initial hemp products (pre)processing capabilities.

v) Primary production efficiency benefits – One collateral benefit of a BioHub is anticipated to be that by providing the local ability to optimally value add all the surplus, waste or by-products of local agricultural/forestry activities, the primary activities should realise a commensurate efficiency benefit (especially resistant weeds and cotton trash).


3. Proposed Scope for PFS #2

With the June 2013 PFS as a starting point, the following scope of works is proposed for PFS #2.

3.1 Review and update of strategic and economic need in light of all new information

3.2 Detailed review of all potential biomass sources within the 300 km radius including direct stakeholder discussions for each to confirm:

Systematically investigate all the generic biomass sources 2.2 i)-iv) above;

Quantity, quality, conditions of availability;

Existing and potential cost structures and value propositions;

Handling, logistics and transport issues;

Any overarching policy, sustainability or community issues to address; and

Respective stakeholder concerns, objectives or ambitions and what a fully functioning regional BioHub would need to provide/achieve for each biomass generator to change current practice and make such materials available to the proposed facility.

3.3 Review of potential bioproduct markets

Engage with all potential markets, customers and/or end users of all/any products potentially available from the proposed BioHub (2.3 i)-iv) above) and establish:

Product potential, in terms of quality, quantity, conditions of supply and potential product specifications;

First order pricing structures and comparison with competitive products, if any;

Review of individual customer or end user motivations and appetites to acquire the proposed bioproducts(s); and

Explore potential for those customers/end users to provide off take guarantees vs. those only able to offer “merchant” commitments.

3.4 Detailed logistics study (road and rail)

Making potentially available biomass materials available for conversion into the highest value finished products will initially depend on receiving them at the BioHub as cost effectively as possible. Under this task, local logistics and transport operators will be consulted, and cross examined to provide:

A base transport and logistics framework, plan and cost structure;

A CAPEX/OPEX budget to be included in the final report; and


A basis for subsequent discussions and negotiations with biomass generators/suppliers.

NB: The outcome of this research will be of particular importance to the 5 closest councils (Dubbo, Warren, Narromine, Gilgandra and Wellington) not only in relation to biomass arisings, but also in relation to many other materials recovered from urban waste streams.

3.5 First order process plant functional design and layout, including sites and satellites

With all the potential biomass supplies identified and scoped, and the highest net value bioproducts specified, the capacity to convert the one into the other as cost effectively as practical will be assessed, to produce as a minimum:

Basic layouts;

Functional specifications for each node of activity;

Preliminary vendor enquiries for all major or crucial items of processing plant; and

First order (±50% accuracy) economic and commercial model of proposed BioHub.

3.6 Repeat/follow up stakeholder consultations

In receipt of the outcomes of 3.5 above, some first order information will be available to conduct follow up discussions/negotiations with:

Potential biomass generators, suppliers – to firm up the mutual advantages and establish at least a logistical and commercial framework for potential future relationships and potentially acquire initial letters of support;

Ditto potential customers and end users.

Collateral issues in relation to:

– Siting options;

– Licencing and approvals issues and processes and limits;

– Potential ownership, operational, funding options and implementation of staging plans will be developed; and

– Identify parallel or synergistic local, state or national programs or initiatives.

3.7 Undertake initial project implementation risk assessment

Identify the issues, concerns or other matters that could have the greatest effect on timely project implementation as planned and identify satisfactory mitigation measures where possible.


4. Detail of Project Tasks, and Budget Estimates

The following sets out the staged approach, methodology and specific tasks budgeted to ensure that the proposed Project Pre-Feasibility and scoping work will result in information and data that can firmly support any resultant and/or subsequent decision making.

4.1 Step 1 – Detailed stakeholder consultation, confirmation of respective criteria for success from such a collaborative project

Background

The original PFS (June 2013) (copy available http://www.rdaorana.org.au/publications.htm#dubbo-biohub) was useful in outlining the potential of the “BioHub” approach, considering an initial range of biomass resources available in the region, a range of stakeholders with an interest in such an initiative, and an identification of the tangible local markets for bioproducts and bioenergy and, by extension, valuable services that could be provided in the region.

Also, by introducing the BioHub concept, this initial report established that a regional BioHub could generate lasting value for the region by providing the essential value adding capability for the regional biomass sector as, say the investment in railhead silos supports and enables the broad acre cereal growers, or investment in a local abattoir supports and enables the regional grazing and livestock sector or even a sawmill can create viability for local forestry activities.

Because a BioHub is initially focused to process regionally generated waste, residue, surplus and by-product biomass resources, and to convert these materials into the highest net resource value products for which secure demand has been established, such an initiative could greatly enhance the overall efficiency and cost effectiveness of all the related primary forestry, agricultural, land management and urban waste activities.

To realise this net benefit for the current owners of all these waste/residue biomass materials, the full carbon, nutrient and energy potential of these materials will need to be realised via the proposed BioHub concept. It is likely that most, if not all, of these targeted biomass materials are currently being spread to land, spray irrigated, buried or dissipated to atmosphere by one route or another. This starting condition defines the need for and scope of this initial consultation process.

Activity

a) For surplus biomass generators:

Explain the BioHub concept (see templates RC-PIS 13-011 and 012 attached B) and its aims, objectives and potential;

Receive initial feedback from stakeholders based on their initial perceptions and expectations;

Provide extra information and data as necessary to further elaborate (normalise) on initial stakeholder expectations;




Record what waste, residue or surplus biomass the stakeholder currently generates and what happens to it now, and what a BioHub operation would need to provide/offer for such materials to be redirected to such a facility;

Fully understand the quantity, quality, and potential conditions of supply for such materials (see Figure 1: Biomass “Supply” Characteristics attached C);

Explore any potential collateral benefits that might accrue to the respective stakeholders in the event that the BioHub concept was fully implemented; and

Collate and record all information and data arising from such interviews and categorise all such information into at least the following matrix:

Materials potentially available as “contracted” supply to a BioHub;

Materials potentially available as “merchant” or occasional supply to a BioHub;

Materials >50% moisture;

Materials <50% moisture; and

Lignocellulosic materials <25% moisture;

including quantity/quality/pricing expectations/and reliability of availability etc.

b) For potential Bioproduct/Bioenergy customers/markets:

Understand the current product or service that is meeting immediate needs;

Discuss tangible benefits an alternative “bio” product would need to demonstrate to support a change in current practice; and

Collate and record all such data and feedback generated from such discussions.

c) For potential extension services and/or Government departments and/or LALCs/supporting service providers and/or equipment and service vendors and/or local councils etc.

Identify current needs, expectations and service offerings;

Explore how a BioHub could be of benefit to all such parties; and

Collate and record all/any collateral benefits that might accrue, or must emerge for their respective support for and collaboration with such a BioHub project.

NB i: Most prospective project stakeholders have already been contacted by Renewed Carbon or RDA in the preparation of this proposal, but all such discussions will need to be formalised and completed to a common standard by:

The convening of an RDA/Renewed Carbon initial kick off/commitment meeting; and

Follow up discussions with each stakeholder in turn, individually, in a group, by phone or direct meeting etc., all as necessary to ensure quality information is obtained and recorded so as to adequately support and justify all subsequent stages.


NB ii: The results of a similar activity in the Cowra region is available (download from http://www.rdaorana.org.au/publications.htm#dubbo-biohub) for reference. Whilst the economic profile of the Cowra region is quite different to the Dubbo region, this document does at least provide an example of the consultation process if not the results and outcomes expected in the Dubbo region.

Budget

12 M/D $19,200

4.2 Step 2 – Detailed Transport/Logistics Study

Background

With the potential catchment area now extended to approx. 300 km to the West and North, and some 200 km to the East and South, the efficiency with which materials are secured, aggregated and transported will be a crucial determinant of the project’s viability.

With potential sources identified in Step 1 and general transport and logistics requirements scoped, the optimisation of transport options will be undertaken with local transport experts.

Biomass materials usually present initially as low bulk density, low energy density, low value (as presented) and often with elevated moisture content.

A guiding project philosophy will be to strive to value add such materials before transport, rather than transporting to value add, but a detailed understanding of these issues will be essential.

Transport and logistics issues will also be crucial in establishing the preferred staged implementation (2.2 above) and providing value to participating councils in relation to both biomass and non-biomass material handling issues.

Activity

Develop optimised transport, logistics and strategies for all the prospective biomass supplies and finished product delivery and distribution needs.

Relate all such costs to the project financial model and use such data to inform potential staged project implementation strategies.

Budget

5 M/D – including Principal – transport experts and consultants – financial modeller

$8,000



4.3 Step 3 – Develop first order conceptual functional process designs and flows including site (and satellites) and staged implementation information as the basis for producing a first order financial model

Background

Steps 1 and 2 will have generated a lot of direct information and data, which when synthesised with publicly (and privately) available data on:

Input costs;

Product values;

Plant and equipment required (Opex/Capex /Revenues);

Staged implementation; and

Transport and logistics costs;

will provide data, values and information to generate a first order financial model to at least test core assumptions, project viability and identify any significant risks or barriers.

Activity

a) Develop first order “block flow” process designs (including generic technology selections) best suited to convert the biomass sources identified at Step 1 into the products, also identified at Step 1;

b) Develop staged implementation model that not only reflects the data from Step 2, but also focuses initially on those biomass resources that might be “contracted” for initial supply, and thus addressing other “merchant” supplies to subsequent stages of the project;

c) Generate first order financial model based initially on all the data and information from Steps 1 and 2, but that can also be continually updated and amended with fresh data and assumptions as further and better information is generated as the project progresses; and

d) Review the “criteria for success”, as stated by each stakeholder during steps 1 and 2, with reference to the financial model generated so as to fully inform the follow up briefings to all stakeholders in Step 4.

Budget

14 M/D – facility designs and block flow work – establish model assumptions – generate model – generate outcomes profile for each stakeholder

$22,400


4.4 Step 4 – Follow up stakeholder consultations and establish respective commitment to proceed with subsequent project development tasks

Background

This project can only proceed and succeed with the support and commitment of a wide range of stakeholders.

Currently all the potential biomass supplies are dissipated to land or atmosphere, usually as a least cost, least harm, nominal benefit only outcome to the owners/generators of these materials.

The proposed BioHub aims to provide significant and sustainable benefits to waste biomass generators, bioproduct/energy customers and position Dubbo in the forefront of the emerging biomass processing sector (see Dubbo PFS, June 2013).

However, since no one stakeholder has the need or motive to establish such a capability in isolation, it is only where multiple stakeholders combine to provide respective and commensurate support and patronage that the greater benefits can be achieved, and so in this Step 4 the information gathered during the Step 1 “listening phase” can be responded to with well researched and calculated feedback.

Activity

Each stakeholder consulted in Step 1 will be re-consulted and apprised of preliminary findings of Steps 2 and 3.

Each stakeholder’s potential interaction with the proposed BioHub will be quantified and qualified and, if positive and fully addressing the “criteria for success” presented by each stakeholder during Step 1, a proportionate, even if conditional, commitment will be requested for the project to proceed to all/any subsequent stages of logical development.

The collective feedback from all such discussions will then inform:

The project’s viability – in any form as identified in the work to date;

The scope and nature of the project going forward; and

The actual stakeholders committed to support and inform future actions.

Budget

8 M/D – stakeholder consultations individually and collectively – collect and collate outcomes and, if positive, scope and budget

future work

$12,800


Stage 1 – Budget Summary

4.1 $19,200

4.2 $8,000

4.3 $22,400

4.4 $12,800

Sub Total $62,400

Plus out of pocket travel & accommodation expenses Say $5,000

$67,400

GST 6,740

Total $71,140

4.5 Subsequent steps might include the following activities to upgrade the financial models to produce a finalised Pre-Feasibility Study in the form of a Basic Project Definition (see Generic Stages of Project Development attached A)

Initially all the data and assumptions used to generate the financial model will need to be verified and confirmed, including:

i) ± gate fee value(s) for all biomass materials identified and confirmed as being available in Step 4;

ii) Confirmed product values as adjusted for terms and conditions of purchase during Step 4;

iii) Update and confirm basic process flow as established during Step 4;

iv) Establish ±25% accuracy values for all (installed) plant and equipment identified as necessary during Step 4 by global vendor enquiry process;

v) Research availability of any supportive government programs;

vi) Review and assess potential licencing and approvals issues and processes; and

vii) Undertake first order project completion risk assessment and value and include resultant mitigation measures in model.

Write up final findings as Basic Project Definition or “Basis of Design” documents for subsequent stages of project development.

Approx. Stage 2 Budget - $50,000.


Attachments:

A Generic Stages of Project Development (“Blue Poles”)

B RC-PIS 12-011 and RC-PIS 13-012

C Figure 1: Biomass “Supply” Characteristics

Proposal to Update Pre-Feasibility Study June 2013 - …ecowaste.com.au/content/EW_Proposal_to_Update_PFS… · · 2014-12-18Proposal to Update Pre-Feasibility Study June 2013 Pre-Feasibility

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