Mackay Sugar’s recipe for energy savings success

One of the country’s biggest sugar companies, Mackay Sugar, has opened the Racecourse Cogeneration Plant, which uses waste from its processes to produce enough electricity to meet one-third of Mackay City’s power needs as well as supply steam and electricity to its own mill and sugar refinery.

The Parliamentary Secretary for Climate Change, Industry and Innovation, Yvette D’Ath, recently opened the $120 million cogeneration plant and congratulated Mackay Sugar on this important milestone in the company’s history.

“Mackay Sugar has today demonstrated that it is possible to make sensible investments in cleaner technologies which not only benefit the environment, but also improve the bottom line and productivity of businesses operating in the modern Australian economy,” D’Ath said.

As an accredited renewable energy power station under the Renewable Energy Target scheme, the cogeneration facility will create large-scale generation certificates based on the amount of renewable electricity it produces. “The revenue stream from the sale of these certificates will support the viability of new power generation projects like the Racecourse plant,” D’Ath said.

Combined with a $9.1 million grant from the Gillard government’s Clean Technology Food and Foundries Investment Program, the broader efficiency improvements being undertaken at Mackay Sugar will reduce the company’s overall carbon pollution by 71%, lead to significant savings on energy costs and help ensure a bright future for the local sugar industry.

“This is just one example of what the Gillard government is doing to help businesses across the country to invest in new technology and generate less pollution and become more efficient. This also demonstrates that the government’s plan for a Clean Energy Future is already working to cut pollution and drive investment in clean energy sources,” said D’Ath.

The Clean Technology grant was awarded in August 2012 for the major upgrade of a boiler at Mackay Sugar’s Marian Mill and for the construction of bagasse handling facilities at the Racecourse Mill to improve the supply, transport and storage of surplus bagasse to fuel the newly constructed green-energy generator.

“The bagasse-based cogeneration plant will reduce Mackay Sugar’s reliance on black coal and significantly reduce its energy costs. The facility also allows the company to earn money by selling renewable power to the grid,” said D’Ath.

The Clean Technology Investment Programs, which are funded by carbon price revenue, are part of the government’s plan for a clean energy future. They deliver practical help for businesses to become more efficient, more competitive and more sustainable.

The Gillard government encourages all local manufacturers, food processors and foundries to access the support available under the $1 billion Clean Technology Investment Programs.

The $200 million Clean Technology Innovation Program is also open to provide opportunities for businesses to develop and commercialise innovative ways of reducing greenhouse gas emissions.

For more information, companies should contact AusIndustry on 13 28 46 or visit www.ausindustry.gov.au.