A WA parliamentary question on notice regarding the oil mallee industry's expansion, funding, inter-departmental cooperation, and benefits from renewable energy targets. The Minister's response is largely aspirational, highlighting potential opportunities and existing investments.

AnsweredQoN 345Legislative Council
Asked
30 May 2007
Portfolio
Forestry

QuestionView source ↗

OIL MALLEE INDUSTRY - INSTALLED ELECTRICAL CAPACITY
Will the minister please provide a brief update of the oil mallee industry with specific reference to - (a) plans and timetables to expand the industry through installed electrical capacity; (b) funding arrangements to facilitate that sector; (c) cooperation between the Department of Agriculture and Food, the Forest Products Commission and Verve Energy to achieve those objectives; and (d) how the government’s aspirational target for renewable energy will benefit the oil mallee power generation sector? Hon KIM CHANCE

AnswerView source ↗

I thank Hon Paul Llewellyn for the question; he may have almost been anticipating something that we are working towards now. I regret that I am unable to provide precise answers except for the last part of the question. Clearly, the government’s aspirational targets for the oil mallee industry could raise issues of some synergy. The oil mallee growers, as distinct from The Oil Mallee Company of Australia Ltd, which itself has made some significant breakthroughs in the commercialisation of this fascinating tree, have proceeded on their own, by and large, to establish themselves as an opportunity. Although, at the end of the day, I think oil mallee growers have always hoped that there would be a commercial end point to their industry, they have established those extensive areas of oil mallee in the wheatbelt for land care reasons. As a result of that, there has been a degree of support through the land care movement, particularly through the national action plan for salinity and water quality. In answer to the first part of the question, there will be expansion in the industry provided that industry can see a commercial end point to what it is doing. The government has made a very significant contribution to developing possible commercial off-take opportunities for the oil mallee industry. Those have been probably best and most amply demonstrated by the integrated wood-processing plant at Narrogin, where I think the state’s expenditure has been in the order of $17 million against total expenditure of, off the top of my head - it is really a question for the Minister for Energy - in the order of $25 million. The knowledge we have gained from that pilot plant contains some valuable intellectual property that I believe can be used for the expansion of this industry. The second part of the question related also to funding arrangements. This is where I think the question gets interesting. I believe that, if an opportunity for a commercial off-take process can be established through one of the range of issues that has been identified as technical possibilities at Narrogin - even if only one were identified; say, the power generation component of the IWP plant - it could provide an opportunity for a business case to be developed around which an application could be made under the national action plan. That is why I made the point that I think this is a very prospective question. The member has asked about cooperation between Verve Energy, the Forest Products Commission and other government agencies. I had discussions with the Minister for Energy only yesterday on this very matter. I look forward to having conversations with Verve, particularly about the identification of those parts of the state in which the system would be the most willing buyer of energy. I have been trying to get such a map of the state for some years to identify where cogeneration opportunities may exist for the benefit of the oil mallee industry. It is largely an aspirational answer to a prospective question. However, I think there are some significant opportunities out there. There are funding opportunities, and there is certainly a significant mass of intellectual property emerging from the investment the government has put in over many years. The Narrogin facility was started by the previous government and was completed during the present government’s term.
(b) funding arrangements to facilitate that sector; (c) cooperation between the Department of Agriculture and Food, the Forest Products Commission and Verve Energy to achieve those objectives; and (d) how the government’s aspirational target for renewable energy will benefit the oil mallee power generation sector?
(c) cooperation between the Department of Agriculture and Food, the Forest Products Commission and Verve Energy to achieve those objectives; and (d) how the government’s aspirational target for renewable energy will benefit the oil mallee power generation sector?
(d) how the government’s aspirational target for renewable energy will benefit the oil mallee power generation sector?
I thank Hon Paul Llewellyn for the question; he may have almost been anticipating something that we are working towards now. I regret that I am unable to provide precise answers except for the last part of the question. Clearly, the government’s aspirational targets for the oil mallee industry could raise issues of some synergy. The oil mallee growers, as distinct from The Oil Mallee Company of Australia Ltd, which itself has made some significant breakthroughs in the commercialisation of this fascinating tree, have proceeded on their own, by and large, to establish themselves as an opportunity. Although, at the end of the day, I think oil mallee growers have always hoped that there would be a commercial end point to their industry, they have established those extensive areas of oil mallee in the wheatbelt for land care reasons. As a result of that, there has been a degree of support through the land care movement, particularly through the national action plan for salinity and water quality. In answer to the first part of the question, there will be expansion in the industry provided that industry can see a commercial end point to what it is doing. The government has made a very significant contribution to developing possible commercial off-take opportunities for the oil mallee industry. Those have been probably best and most amply demonstrated by the integrated wood-processing plant at Narrogin, where I think the state’s expenditure has been in the order of $17 million against total expenditure of, off the top of my head - it is really a question for the Minister for Energy - in the order of $25 million. The knowledge we have gained from that pilot plant contains some valuable intellectual property that I believe can be used for the expansion of this industry. The second part of the question related also to funding arrangements. This is where I think the question gets interesting. I believe that, if an opportunity for a commercial off-take process can be established through one of the range of issues that has been identified as technical possibilities at Narrogin - even if only one were identified; say, the power generation component of the IWP plant - it could provide an opportunity for a business case to be developed around which an application could be made under the national action plan. That is why I made the point that I think this is a very prospective question. The member has asked about cooperation between Verve Energy, the Forest Products Commission and other government agencies. I had discussions with the Minister for Energy only yesterday on this very matter. I look forward to having conversations with Verve, particularly about the identification of those parts of the state in which the system would be the most willing buyer of energy. I have been trying to get such a map of the state for some years to identify where cogeneration opportunities may exist for the benefit of the oil mallee industry. It is largely an aspirational answer to a prospective question. However, I think there are some significant opportunities out there. There are funding opportunities, and there is certainly a significant mass of intellectual property emerging from the investment the government has put in over many years. The Narrogin facility was started by the previous government and was completed during the present government’s term.
In answer to the first part of the question, there will be expansion in the industry provided that industry can see a commercial end point to what it is doing. The government has made a very significant contribution to developing possible commercial off-take opportunities for the oil mallee industry. Those have been probably best and most amply demonstrated by the integrated wood-processing plant at Narrogin, where I think the state’s expenditure has been in the order of $17 million against total expenditure of, off the top of my head - it is really a question for the Minister for Energy - in the order of $25 million. The knowledge we have gained from that pilot plant contains some valuable intellectual property that I believe can be used for the expansion of this industry. The second part of the question related also to funding arrangements. This is where I think the question gets interesting. I believe that, if an opportunity for a commercial off-take process can be established through one of the range of issues that has been identified as technical possibilities at Narrogin - even if only one were identified; say, the power generation component of the IWP plant - it could provide an opportunity for a business case to be developed around which an application could be made under the national action plan. That is why I made the point that I think this is a very prospective question. The member has asked about cooperation between Verve Energy, the Forest Products Commission and other government agencies. I had discussions with the Minister for Energy only yesterday on this very matter. I look forward to having conversations with Verve, particularly about the identification of those parts of the state in which the system would be the most willing buyer of energy. I have been trying to get such a map of the state for some years to identify where cogeneration opportunities may exist for the benefit of the oil mallee industry. It is largely an aspirational answer to a prospective question. However, I think there are some significant opportunities out there. There are funding opportunities, and there is certainly a significant mass of intellectual property emerging from the investment the government has put in over many years. The Narrogin facility was started by the previous government and was completed during the present government’s term.
The second part of the question related also to funding arrangements. This is where I think the question gets interesting. I believe that, if an opportunity for a commercial off-take process can be established through one of the range of issues that has been identified as technical possibilities at Narrogin - even if only one were identified; say, the power generation component of the IWP plant - it could provide an opportunity for a business case to be developed around which an application could be made under the national action plan. That is why I made the point that I think this is a very prospective question. The member has asked about cooperation between Verve Energy, the Forest Products Commission and other government agencies. I had discussions with the Minister for Energy only yesterday on this very matter. I look forward to having conversations with Verve, particularly about the identification of those parts of the state in which the system would be the most willing buyer of energy. I have been trying to get such a map of the state for some years to identify where cogeneration opportunities may exist for the benefit of the oil mallee industry. It is largely an aspirational answer to a prospective question. However, I think there are some significant opportunities out there. There are funding opportunities, and there is certainly a significant mass of intellectual property emerging from the investment the government has put in over many years. The Narrogin facility was started by the previous government and was completed during the present government’s term.
The member has asked about cooperation between Verve Energy, the Forest Products Commission and other government agencies. I had discussions with the Minister for Energy only yesterday on this very matter. I look forward to having conversations with Verve, particularly about the identification of those parts of the state in which the system would be the most willing buyer of energy. I have been trying to get such a map of the state for some years to identify where cogeneration opportunities may exist for the benefit of the oil mallee industry. It is largely an aspirational answer to a prospective question. However, I think there are some significant opportunities out there. There are funding opportunities, and there is certainly a significant mass of intellectual property emerging from the investment the government has put in over many years. The Narrogin facility was started by the previous government and was completed during the present government’s term.
It is largely an aspirational answer to a prospective question. However, I think there are some significant opportunities out there. There are funding opportunities, and there is certainly a significant mass of intellectual property emerging from the investment the government has put in over many years. The Narrogin facility was started by the previous government and was completed during the present government’s term.

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