Mackay Sugar's 38 megawatt Racecourse Cogeneration Plant was officially opened today.
Construction of the $120 million cogeneration plant first commenced at Racecourse Mill in early 2010, with the commissioning phase and export of renewable energy to the national electricity grid commencing respectively in September and November 2012.
At full capacity, the Racecourse Cogeneration Plant produces enough renewable energy to meet approximately 30 per cent of Mackay's annual electricity consumption, while also providing energy to the Racecourse Mill and adjacent Racecourse Refinery.
The facility 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, said that as an accredited renewable energy power station under the Renewable Energy Target scheme, the new 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,”Ms D’Ath said.
Combined with a $9.1 million grant from the federal 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 per cent and lead to significant savings on energy costs.
As well as reducing the company's reliance on black coal, the facility allows the company to earn money by selling renewable power to the grid.
Mackay Sugar chief executive officer Quinton Hildebrand said the plant provides significant environmental benefits.
For example, energy produced from the plant reduces Queensland's greenhouse gas emissions by 200,000 tonnes equivalent carbon dioxide (CO2e) each year.
Energy from the plant is distributed to a 66 kilovolt switchyard adjacent to the Racecourse site and connects to Ergon Energy's Glenella feeder (north of the Pioneer River) via a five-kilometre high voltage transmission line.
