Energy retailer rejects ‘dead koala’ Eden power station

Commenting on a story on page 3 of today’s Sydney Morning Herald (‘Blow for energy proposal’) Dr Kaye said: “Country Energy has blown a hole in the viability of plans by the Eden woodchip mill to feed native forests into a power station furnace.

“By ruling out the purchase of renewable energy certificates from any native forestry operation, the region’s largest retailer has pulled the rug out from under plans by the mill’s owner, SEFE, to burn the forests to make electricity.

“SEFE’s exploitation of the South East’s native forests only survives on massive state government subsidies on the wood they use. In the face of falling international prices for chips and growing competition from plantations, the chip mill owner is desperate to find a new way to continue to harvest those subsidies.

“Trying to break into the renewable energy market was the chipmill’s lifeline.

“Country Energy has now slammed the door in their face by refusing to buy ‘dead koala’ renewable energy certificates.

“Country Energy has recognised that their customers reject the idea that burning native forests is either sustainable or renewable.

“This is a victory for households that are seeking a clean energy future for NSW. Increasing the devastation of the native forests of the South-East is anything but sustainable or renewable.

“Without a market for their renewable energy certificates, the power plant will be unable to compete against wind generators and will struggle to make a profit even though the wood it plans to burn is heavily subsidised.

“This is the first step in unravelling the myth that native forest power stations are based on waste and can be renewable or clean.

“It is time for the NSW government to catch up with households and end the unsustainable use of the forests of South East NSW. The power station should be rejected, the subsidies stopped  and the chip mill closed,” Dr Kaye said.

For more information:       John Kaye 0407 195 455

Further reading:

• Read John's comments in the following Sydney Morning Herald article:

Blow for energy proposal

"When the carbon-absorbing qualities of trees and undisturbed soil were taken into account, burning them can create more greenhouse gases than coal, said NSW Greens MP John Kaye.

"[The] mill owner is desperate to find a new way to continue to harvest those subsidies," Mr Kaye said. "Trying to break into the renewable energy market is [the company's] lifeline."

• or in the ABC News, 4 Feb 2009:

Green doubts cast over biomass generator plan

NSW Greens' MP John Kaye says plans by the South-East Fibre Exports Mill at Eden to create energy from a biomass generator will do nothing to reduce carbon emissions and is no more efficient than burning coal.

Mr Kaye says electricity companies have decided not to recognise the plant as an accredited supplier of renewable power.

He says that is bad news for south-east forests.

"The power station will continue the exploitation of the south-east forests in an unsustainable way. One million tonnes of woodchips are exported overseas right now. The risk is that that one million tonnes will end up in the furnaces of power stations," he said.