The facility will be built adjacent to the Tableland Mill in Queensland, which includes a liquid fertiliser plant that will produce a vinasse-based fertiliser.
Federal Minister for Agriculture Peter McGauran announced a $36 million boost to the sugar industry in New South Wales and Queensland yesterday, including up to $11.65 million to Bundaberg Sugar for the feedstock facility.
Other projects to receive funding include up to $35,144 for the Rocky Point Cooperative to erect two 100-tonne silos, along with transport/handling infrastructure to store soy beans and other alternative crops grown in rotation with sugar cane.
“This will encourage further production of alternative crops which will have associated benefits for core productivity,” the Department of Agriculture, Fisheries and Forestry said.
The Rocky Point Mill is home to one of Australia’s largest biomass cogeneration power plants, which uses bagasse (sugar waste) to supply power to the mill and sells excess energy back into the grid. The mill is also involved in research and development of ethanol biofuels.
McGauran said the $36 million boost in funding was designed to increase the opportunities for the sugar industry to develop a strong regional focus.
“This will help the sugar industry reposition itself for the future by boosting its self-reliance, and its long-term viability and sustainability,” he said.
The sugar industry has been a driving force behind the development of biofuels in Australia.
Once considered “value-added” elements of standard operations, energy and fuel technologies appear to be of increasing importance in securing the future of the Australian sugar industry.