❓ A WA parliamentary question addresses Verve Energy's oil mallee technology commercialisation, focusing on off-take agreements, premium pricing for green energy, and potential government subsidies. The Minister's response is non-committal, citing the early stage of development.
AnsweredQoN 384Legislative Assembly
QuestionView source ↗
VERVE ENERGY - OIL MALLEE TECHNOLOGY COMMERCIALISATION
I refer to the minister’s announcement yesterday that Verve Energy has been asked to seek expressions of interest from the private sector for the commercialisation of oil mallee technology trialled at the Narrogin pilot plant. (1) Does the minister envisage that Verve Energy will enter into long-term off-take agreements and acquire all the green energy produced by future integrated oil mallee generators in Western Australia? (2) Is the roll-out of this cutting edge technology dependent on the ability of investors to sell this green energy at a premium? (3) Will the state government subsidise, if necessary, the acquisition of this green energy, thereby underpinning the viability of up to 10 mallee tree generators across wheatbelt Western Australia? Mr F.M. LOGAN
I refer to the minister’s announcement yesterday that Verve Energy has been asked to seek expressions of interest from the private sector for the commercialisation of oil mallee technology trialled at the Narrogin pilot plant. (1) Does the minister envisage that Verve Energy will enter into long-term off-take agreements and acquire all the green energy produced by future integrated oil mallee generators in Western Australia? (2) Is the roll-out of this cutting edge technology dependent on the ability of investors to sell this green energy at a premium? (3) Will the state government subsidise, if necessary, the acquisition of this green energy, thereby underpinning the viability of up to 10 mallee tree generators across wheatbelt Western Australia? Mr F.M. LOGAN
AnswerView source ↗
I thank the member for some notice of this question. He is a strong supporter and promoter of the Narrogin biomass pilot plant. (1) As I pointed out to the member yesterday, I have requested Verve Energy to take the pilot plant to the commercial stage. Very soon, after the technical reports have been written, Verve will be seeking expressions of interest in a joint venture to take the pilot plant to a commercial stage. I have had this discussion before with the member for Wagin, and he knows that a significant number of companies are very interested in this technology and the plant itself. However, in respect of an off-take agreement that will effectively underwrite the commercialisation of this plant, it is too early to comment on the basis on which the plant will be commercialised. The member knows that this is really still a research and development plant. (2) I am advised that the pricing structure of a commercial plant is not known at this stage. This includes the extent to which the land care benefits and other potential income streams, such as the sale of renewable energy, will contribute to the technology’s commercial viability. A number of income streams may underpin the commercial viability of the plant’s final operation. (3) Projects utilising this technology will be expected to participate in the electricity market in a commercially competitive manner. I would imagine that anybody outside of Verve Energy who takes up investment in this plant would expect that to be the case as well. The level of technology support necessary to reach market readiness, as the member is aware, is not known at this stage, but hopefully it will be known by the end of the year.
(1) Does the minister envisage that Verve Energy will enter into long-term off-take agreements and acquire all the green energy produced by future integrated oil mallee generators in Western Australia? (2) Is the roll-out of this cutting edge technology dependent on the ability of investors to sell this green energy at a premium? (3) Will the state government subsidise, if necessary, the acquisition of this green energy, thereby underpinning the viability of up to 10 mallee tree generators across wheatbelt Western Australia? Mr F.M. LOGAN replied: I thank the member for some notice of this question. He is a strong supporter and promoter of the Narrogin biomass pilot plant. (1) As I pointed out to the member yesterday, I have requested Verve Energy to take the pilot plant to the commercial stage. Very soon, after the technical reports have been written, Verve will be seeking expressions of interest in a joint venture to take the pilot plant to a commercial stage. I have had this discussion before with the member for Wagin, and he knows that a significant number of companies are very interested in this technology and the plant itself. However, in respect of an off-take agreement that will effectively underwrite the commercialisation of this plant, it is too early to comment on the basis on which the plant will be commercialised. The member knows that this is really still a research and development plant. (2) I am advised that the pricing structure of a commercial plant is not known at this stage. This includes the extent to which the land care benefits and other potential income streams, such as the sale of renewable energy, will contribute to the technology’s commercial viability. A number of income streams may underpin the commercial viability of the plant’s final operation. (3) Projects utilising this technology will be expected to participate in the electricity market in a commercially competitive manner. I would imagine that anybody outside of Verve Energy who takes up investment in this plant would expect that to be the case as well. The level of technology support necessary to reach market readiness, as the member is aware, is not known at this stage, but hopefully it will be known by the end of the year.
(2) Is the roll-out of this cutting edge technology dependent on the ability of investors to sell this green energy at a premium? (3) Will the state government subsidise, if necessary, the acquisition of this green energy, thereby underpinning the viability of up to 10 mallee tree generators across wheatbelt Western Australia? Mr F.M. LOGAN replied: I thank the member for some notice of this question. He is a strong supporter and promoter of the Narrogin biomass pilot plant. (1) As I pointed out to the member yesterday, I have requested Verve Energy to take the pilot plant to the commercial stage. Very soon, after the technical reports have been written, Verve will be seeking expressions of interest in a joint venture to take the pilot plant to a commercial stage. I have had this discussion before with the member for Wagin, and he knows that a significant number of companies are very interested in this technology and the plant itself. However, in respect of an off-take agreement that will effectively underwrite the commercialisation of this plant, it is too early to comment on the basis on which the plant will be commercialised. The member knows that this is really still a research and development plant. (2) I am advised that the pricing structure of a commercial plant is not known at this stage. This includes the extent to which the land care benefits and other potential income streams, such as the sale of renewable energy, will contribute to the technology’s commercial viability. A number of income streams may underpin the commercial viability of the plant’s final operation. (3) Projects utilising this technology will be expected to participate in the electricity market in a commercially competitive manner. I would imagine that anybody outside of Verve Energy who takes up investment in this plant would expect that to be the case as well. The level of technology support necessary to reach market readiness, as the member is aware, is not known at this stage, but hopefully it will be known by the end of the year.
(3) Will the state government subsidise, if necessary, the acquisition of this green energy, thereby underpinning the viability of up to 10 mallee tree generators across wheatbelt Western Australia? Mr F.M. LOGAN replied: I thank the member for some notice of this question. He is a strong supporter and promoter of the Narrogin biomass pilot plant. (1) As I pointed out to the member yesterday, I have requested Verve Energy to take the pilot plant to the commercial stage. Very soon, after the technical reports have been written, Verve will be seeking expressions of interest in a joint venture to take the pilot plant to a commercial stage. I have had this discussion before with the member for Wagin, and he knows that a significant number of companies are very interested in this technology and the plant itself. However, in respect of an off-take agreement that will effectively underwrite the commercialisation of this plant, it is too early to comment on the basis on which the plant will be commercialised. The member knows that this is really still a research and development plant. (2) I am advised that the pricing structure of a commercial plant is not known at this stage. This includes the extent to which the land care benefits and other potential income streams, such as the sale of renewable energy, will contribute to the technology’s commercial viability. A number of income streams may underpin the commercial viability of the plant’s final operation. (3) Projects utilising this technology will be expected to participate in the electricity market in a commercially competitive manner. I would imagine that anybody outside of Verve Energy who takes up investment in this plant would expect that to be the case as well. The level of technology support necessary to reach market readiness, as the member is aware, is not known at this stage, but hopefully it will be known by the end of the year.
Mr F.M. LOGAN replied: I thank the member for some notice of this question. He is a strong supporter and promoter of the Narrogin biomass pilot plant. (1) As I pointed out to the member yesterday, I have requested Verve Energy to take the pilot plant to the commercial stage. Very soon, after the technical reports have been written, Verve will be seeking expressions of interest in a joint venture to take the pilot plant to a commercial stage. I have had this discussion before with the member for Wagin, and he knows that a significant number of companies are very interested in this technology and the plant itself. However, in respect of an off-take agreement that will effectively underwrite the commercialisation of this plant, it is too early to comment on the basis on which the plant will be commercialised. The member knows that this is really still a research and development plant. (2) I am advised that the pricing structure of a commercial plant is not known at this stage. This includes the extent to which the land care benefits and other potential income streams, such as the sale of renewable energy, will contribute to the technology’s commercial viability. A number of income streams may underpin the commercial viability of the plant’s final operation. (3) Projects utilising this technology will be expected to participate in the electricity market in a commercially competitive manner. I would imagine that anybody outside of Verve Energy who takes up investment in this plant would expect that to be the case as well. The level of technology support necessary to reach market readiness, as the member is aware, is not known at this stage, but hopefully it will be known by the end of the year.
I thank the member for some notice of this question. He is a strong supporter and promoter of the Narrogin biomass pilot plant. (1) As I pointed out to the member yesterday, I have requested Verve Energy to take the pilot plant to the commercial stage. Very soon, after the technical reports have been written, Verve will be seeking expressions of interest in a joint venture to take the pilot plant to a commercial stage. I have had this discussion before with the member for Wagin, and he knows that a significant number of companies are very interested in this technology and the plant itself. However, in respect of an off-take agreement that will effectively underwrite the commercialisation of this plant, it is too early to comment on the basis on which the plant will be commercialised. The member knows that this is really still a research and development plant. (2) I am advised that the pricing structure of a commercial plant is not known at this stage. This includes the extent to which the land care benefits and other potential income streams, such as the sale of renewable energy, will contribute to the technology’s commercial viability. A number of income streams may underpin the commercial viability of the plant’s final operation. (3) Projects utilising this technology will be expected to participate in the electricity market in a commercially competitive manner. I would imagine that anybody outside of Verve Energy who takes up investment in this plant would expect that to be the case as well. The level of technology support necessary to reach market readiness, as the member is aware, is not known at this stage, but hopefully it will be known by the end of the year.
(1) As I pointed out to the member yesterday, I have requested Verve Energy to take the pilot plant to the commercial stage. Very soon, after the technical reports have been written, Verve will be seeking expressions of interest in a joint venture to take the pilot plant to a commercial stage. I have had this discussion before with the member for Wagin, and he knows that a significant number of companies are very interested in this technology and the plant itself. However, in respect of an off-take agreement that will effectively underwrite the commercialisation of this plant, it is too early to comment on the basis on which the plant will be commercialised. The member knows that this is really still a research and development plant. (2) I am advised that the pricing structure of a commercial plant is not known at this stage. This includes the extent to which the land care benefits and other potential income streams, such as the sale of renewable energy, will contribute to the technology’s commercial viability. A number of income streams may underpin the commercial viability of the plant’s final operation. (3) Projects utilising this technology will be expected to participate in the electricity market in a commercially competitive manner. I would imagine that anybody outside of Verve Energy who takes up investment in this plant would expect that to be the case as well. The level of technology support necessary to reach market readiness, as the member is aware, is not known at this stage, but hopefully it will be known by the end of the year.
(2) I am advised that the pricing structure of a commercial plant is not known at this stage. This includes the extent to which the land care benefits and other potential income streams, such as the sale of renewable energy, will contribute to the technology’s commercial viability. A number of income streams may underpin the commercial viability of the plant’s final operation. (3) Projects utilising this technology will be expected to participate in the electricity market in a commercially competitive manner. I would imagine that anybody outside of Verve Energy who takes up investment in this plant would expect that to be the case as well. The level of technology support necessary to reach market readiness, as the member is aware, is not known at this stage, but hopefully it will be known by the end of the year.
(3) Projects utilising this technology will be expected to participate in the electricity market in a commercially competitive manner. I would imagine that anybody outside of Verve Energy who takes up investment in this plant would expect that to be the case as well. The level of technology support necessary to reach market readiness, as the member is aware, is not known at this stage, but hopefully it will be known by the end of the year.
(1) Does the minister envisage that Verve Energy will enter into long-term off-take agreements and acquire all the green energy produced by future integrated oil mallee generators in Western Australia? (2) Is the roll-out of this cutting edge technology dependent on the ability of investors to sell this green energy at a premium? (3) Will the state government subsidise, if necessary, the acquisition of this green energy, thereby underpinning the viability of up to 10 mallee tree generators across wheatbelt Western Australia? Mr F.M. LOGAN replied: I thank the member for some notice of this question. He is a strong supporter and promoter of the Narrogin biomass pilot plant. (1) As I pointed out to the member yesterday, I have requested Verve Energy to take the pilot plant to the commercial stage. Very soon, after the technical reports have been written, Verve will be seeking expressions of interest in a joint venture to take the pilot plant to a commercial stage. I have had this discussion before with the member for Wagin, and he knows that a significant number of companies are very interested in this technology and the plant itself. However, in respect of an off-take agreement that will effectively underwrite the commercialisation of this plant, it is too early to comment on the basis on which the plant will be commercialised. The member knows that this is really still a research and development plant. (2) I am advised that the pricing structure of a commercial plant is not known at this stage. This includes the extent to which the land care benefits and other potential income streams, such as the sale of renewable energy, will contribute to the technology’s commercial viability. A number of income streams may underpin the commercial viability of the plant’s final operation. (3) Projects utilising this technology will be expected to participate in the electricity market in a commercially competitive manner. I would imagine that anybody outside of Verve Energy who takes up investment in this plant would expect that to be the case as well. The level of technology support necessary to reach market readiness, as the member is aware, is not known at this stage, but hopefully it will be known by the end of the year.
(2) Is the roll-out of this cutting edge technology dependent on the ability of investors to sell this green energy at a premium? (3) Will the state government subsidise, if necessary, the acquisition of this green energy, thereby underpinning the viability of up to 10 mallee tree generators across wheatbelt Western Australia? Mr F.M. LOGAN replied: I thank the member for some notice of this question. He is a strong supporter and promoter of the Narrogin biomass pilot plant. (1) As I pointed out to the member yesterday, I have requested Verve Energy to take the pilot plant to the commercial stage. Very soon, after the technical reports have been written, Verve will be seeking expressions of interest in a joint venture to take the pilot plant to a commercial stage. I have had this discussion before with the member for Wagin, and he knows that a significant number of companies are very interested in this technology and the plant itself. However, in respect of an off-take agreement that will effectively underwrite the commercialisation of this plant, it is too early to comment on the basis on which the plant will be commercialised. The member knows that this is really still a research and development plant. (2) I am advised that the pricing structure of a commercial plant is not known at this stage. This includes the extent to which the land care benefits and other potential income streams, such as the sale of renewable energy, will contribute to the technology’s commercial viability. A number of income streams may underpin the commercial viability of the plant’s final operation. (3) Projects utilising this technology will be expected to participate in the electricity market in a commercially competitive manner. I would imagine that anybody outside of Verve Energy who takes up investment in this plant would expect that to be the case as well. The level of technology support necessary to reach market readiness, as the member is aware, is not known at this stage, but hopefully it will be known by the end of the year.
(3) Will the state government subsidise, if necessary, the acquisition of this green energy, thereby underpinning the viability of up to 10 mallee tree generators across wheatbelt Western Australia? Mr F.M. LOGAN replied: I thank the member for some notice of this question. He is a strong supporter and promoter of the Narrogin biomass pilot plant. (1) As I pointed out to the member yesterday, I have requested Verve Energy to take the pilot plant to the commercial stage. Very soon, after the technical reports have been written, Verve will be seeking expressions of interest in a joint venture to take the pilot plant to a commercial stage. I have had this discussion before with the member for Wagin, and he knows that a significant number of companies are very interested in this technology and the plant itself. However, in respect of an off-take agreement that will effectively underwrite the commercialisation of this plant, it is too early to comment on the basis on which the plant will be commercialised. The member knows that this is really still a research and development plant. (2) I am advised that the pricing structure of a commercial plant is not known at this stage. This includes the extent to which the land care benefits and other potential income streams, such as the sale of renewable energy, will contribute to the technology’s commercial viability. A number of income streams may underpin the commercial viability of the plant’s final operation. (3) Projects utilising this technology will be expected to participate in the electricity market in a commercially competitive manner. I would imagine that anybody outside of Verve Energy who takes up investment in this plant would expect that to be the case as well. The level of technology support necessary to reach market readiness, as the member is aware, is not known at this stage, but hopefully it will be known by the end of the year.
Mr F.M. LOGAN replied: I thank the member for some notice of this question. He is a strong supporter and promoter of the Narrogin biomass pilot plant. (1) As I pointed out to the member yesterday, I have requested Verve Energy to take the pilot plant to the commercial stage. Very soon, after the technical reports have been written, Verve will be seeking expressions of interest in a joint venture to take the pilot plant to a commercial stage. I have had this discussion before with the member for Wagin, and he knows that a significant number of companies are very interested in this technology and the plant itself. However, in respect of an off-take agreement that will effectively underwrite the commercialisation of this plant, it is too early to comment on the basis on which the plant will be commercialised. The member knows that this is really still a research and development plant. (2) I am advised that the pricing structure of a commercial plant is not known at this stage. This includes the extent to which the land care benefits and other potential income streams, such as the sale of renewable energy, will contribute to the technology’s commercial viability. A number of income streams may underpin the commercial viability of the plant’s final operation. (3) Projects utilising this technology will be expected to participate in the electricity market in a commercially competitive manner. I would imagine that anybody outside of Verve Energy who takes up investment in this plant would expect that to be the case as well. The level of technology support necessary to reach market readiness, as the member is aware, is not known at this stage, but hopefully it will be known by the end of the year.
I thank the member for some notice of this question. He is a strong supporter and promoter of the Narrogin biomass pilot plant. (1) As I pointed out to the member yesterday, I have requested Verve Energy to take the pilot plant to the commercial stage. Very soon, after the technical reports have been written, Verve will be seeking expressions of interest in a joint venture to take the pilot plant to a commercial stage. I have had this discussion before with the member for Wagin, and he knows that a significant number of companies are very interested in this technology and the plant itself. However, in respect of an off-take agreement that will effectively underwrite the commercialisation of this plant, it is too early to comment on the basis on which the plant will be commercialised. The member knows that this is really still a research and development plant. (2) I am advised that the pricing structure of a commercial plant is not known at this stage. This includes the extent to which the land care benefits and other potential income streams, such as the sale of renewable energy, will contribute to the technology’s commercial viability. A number of income streams may underpin the commercial viability of the plant’s final operation. (3) Projects utilising this technology will be expected to participate in the electricity market in a commercially competitive manner. I would imagine that anybody outside of Verve Energy who takes up investment in this plant would expect that to be the case as well. The level of technology support necessary to reach market readiness, as the member is aware, is not known at this stage, but hopefully it will be known by the end of the year.
(1) As I pointed out to the member yesterday, I have requested Verve Energy to take the pilot plant to the commercial stage. Very soon, after the technical reports have been written, Verve will be seeking expressions of interest in a joint venture to take the pilot plant to a commercial stage. I have had this discussion before with the member for Wagin, and he knows that a significant number of companies are very interested in this technology and the plant itself. However, in respect of an off-take agreement that will effectively underwrite the commercialisation of this plant, it is too early to comment on the basis on which the plant will be commercialised. The member knows that this is really still a research and development plant. (2) I am advised that the pricing structure of a commercial plant is not known at this stage. This includes the extent to which the land care benefits and other potential income streams, such as the sale of renewable energy, will contribute to the technology’s commercial viability. A number of income streams may underpin the commercial viability of the plant’s final operation. (3) Projects utilising this technology will be expected to participate in the electricity market in a commercially competitive manner. I would imagine that anybody outside of Verve Energy who takes up investment in this plant would expect that to be the case as well. The level of technology support necessary to reach market readiness, as the member is aware, is not known at this stage, but hopefully it will be known by the end of the year.
(2) I am advised that the pricing structure of a commercial plant is not known at this stage. This includes the extent to which the land care benefits and other potential income streams, such as the sale of renewable energy, will contribute to the technology’s commercial viability. A number of income streams may underpin the commercial viability of the plant’s final operation. (3) Projects utilising this technology will be expected to participate in the electricity market in a commercially competitive manner. I would imagine that anybody outside of Verve Energy who takes up investment in this plant would expect that to be the case as well. The level of technology support necessary to reach market readiness, as the member is aware, is not known at this stage, but hopefully it will be known by the end of the year.
(3) Projects utilising this technology will be expected to participate in the electricity market in a commercially competitive manner. I would imagine that anybody outside of Verve Energy who takes up investment in this plant would expect that to be the case as well. The level of technology support necessary to reach market readiness, as the member is aware, is not known at this stage, but hopefully it will be known by the end of the year.
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