Ms BADGER – Can I clarify, are you able to take questions regarding Forestry Tasmania now or next week?
Mr ELLIS – Next week if that works, I don’t have the people available. I can do forestry in general.
Ms BADGER – I’m not the forestry spokesperson. Minister, have you or has anyone in your department been part of any conversations or investigations around the use of native forest residues for a methanol plant in Burnie? Minister Duigan in the Energy and Renewables committee indicated that it’s his understanding that a memorandum of understanding has been entered into with HIF Global and other e-fuel proponents to use biomass for e-fuel plants. Can you tell us whether that’s true, and if so, do these memorandums of understanding stipulate whether the timber comes solely from plantation sources?
Mr ELLIS – Firstly, importantly, biomass represents huge opportunities. We mentioned the Railton Plant before the cement and certainly there are major opportunities for the use of biomass for the energy there, which will displace coal. So, there are some significant environmental benefits in that process. I’ve met with the team from HIF over recent years and aware of their significant interest in investment in my electorate and there are some major opportunities for decarbonising the liquid fuel supply chain. That includes using biomass and I will pass to the team at State Growth regarding that engagement.
Mr LIMKIN – I’m not aware of anyone having conversations in relation to a direct MOU. The team at ReCFIT continue to work with HIF as part of that work. I can’t speak about every conversation, but I’m not aware of any conversation.
Ms BADGER – OK, great. Thank you. Can you confirm, are there any plans for a wood supply agreement or equivalent entered into with any of the current e-fuel proponents?
Mr ELLIS – I think Ms Pinto has some further information.
Ms PINTO – Thank you, and through you, minister. I will couch this firstly by saying that any discussions that are occurring at the moment are commercial and confidence and what I’m stating are not privy to those matters, but what I can say are the standards that need to be met with contracts of this nature. I would anticipate that any term sheets that are associated with the production of green methanol need to come from sustainable certified plantations for the lifetime of the project. Further, that no old growth biomass from native forests can be used. Typically, the biomass is forest residues and waste from sawmills. That would, for example, include treetops, small branches and the like. You’re not going to see wood chips or structural timber in that. The biomass in that regard then would be compliant with the current European Renewable Energy Directive, commonly known as RED III, such that it’s independently certified because we have to realise the product produced here, such as green methanol, is probably going – in many instances would be going to Asian countries like Japan or Korea where those standards are required.
The other point I would make is that a national level, there are standards that are set by the Australian Government under the Guarantee of Origin certificates that are set that also require biomass must be from land that was not cleared of native vegetation after 31 December 1989 to establish the plantation and must be within a code of practice approved under the export control woodchips rules.
I’ve outlined quite a bit of detail there, but there are quite strict standards. Again, – I’ve outlined them noting that I’m not privy to what is within those term sheets. I’m outlining what I understand the standards that would be needed for a developer such as Bell Bay Powerfuels or HIF, or any other that is seeking to export green methanol internationally.
Mr ELLIS – Chair, Mr Morton has a response regarding Tyndall Range exploration licences.
Mr MORTON – Quickly minister, and through you. Just a response to Ms Badger’s earlier question about exploration grants in the Tyndall Ranges. The Tyndall Range Walk was designed by the Parks and Wildlife Service and, obviously, MRT has been working closely with them. It’s designed as an active mineral zone so the work with Parks has effectively embedded the message that mining is a critical part of our heritage. There have been two EDGI grants completed in the area of the iconic walk with a total of $155,000. This was for two holes that were drilled that were nearly 800 m in length total and resulted in a total investment in exploration of around $350,000.
Mr ELLIS – Mr Limkin has an update for Ms Johnston.
Mr LILMKIN – Ms Johnston, thank you for your patience. In relation to your advanced manufacturing grant question. By round:
Round 1, there were eight successful applications, eight acquittals processed, 100 per cent acquittal finalisation rate, 88.09 per cent projected FTE acquittal achieved, then at review 100.37 projected FTE at review achieved.
Round 2, there were 12 successful applicants, 12 acquittals processed, 100 per cent acquittals finalised, 59.01 projected FTEs at the acquittal, then 103.46 projected FTEs at final review.
Round 3, there were seven successful applications, six acquittals, one decided not to proceed, 100 per cent acquittals finalisation rate for those six projects – and we’re only talking about those six projects now – 31.5 projected FTEs and 42.52 projected FTEs at review achieved. I will talk about why there’s a lag in a second.
Round 4, 11 successful applications, 10 acquittals, one decided not to proceed, 100 per cent acquittals finalised, 24.15 projected FTEs at acquittals achieved, 27.55 projected FTEs at review achieved.
Round 5, 13 successful applications, 10 acquittals to date, two grantees are yet to complete their project, and one has decided not to proceed.
In relation to some of the timing in those later rounds, I am advised that employment outcomes generally are one-two years plus down the track and not immediately available, hence why the earlier rounds have a higher percentage. Those later rounds currently have a lower percentage. The team at State Growth will continue to monitor those lower percentage ones and we expect them to go over time. I am advised it takes time to ramp up production after equipment is installed, commissioned and staff are trained, tested and finding new staff with relevant skills and experiences, particularly in becoming a new market, so there is a lag, but the team continues to monitor those as we go on.
Mr ELLIS – Sorry, Chair, I have one from the first session today, and the answer was in relation to this session. Ms Badger was asking in regard to Supreme Court appearances. Over the last year or two, I’m only aware of one mining related matter that was appealed to the Supreme Court, which was Tas Mulch Pty Ltd as trustees of the Tas Mulch Trust versus Minister for Business, Industry and Resources – that’s me now. As the matter is still afoot I have no further comment at this time. Crown Law is again representing the minister of the day in the normal way. I don’t know if there’s anything further that Mr Morton wants to provide as an update? I’m sorry to get in the way, that was a bit long.
