Liquefied Natural Gas (LNG) as truck fuel in Tasmania

Major Project To Increase Competitiveness

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The Premier, Paul Lennon, and the Federal Minister for Forestry and Conservation, Senator Eric Abetz, today announced a major new project to increase the competitiveness of the forest contracting sector.

A grant of $5.05 million to LNG Refuellers Pty Ltd* under the Tasmanian Community Forest Agreement will enable an innovative approach to combating increasing and unpredictable diesel prices.

The project has three components:

(i) The conversion of natural gas into LNG and the storage of this fuel;

(ii) The transportation of the fuel and creation of a refuelling network; and

(iii) The conversion of a fleet of trucks to run on LNG.

“This is an exciting project that will look to dramatically reduce fuel bills for forest contactors”, Senator Abetz said.

“It is a great demonstration of the practical way that the Tasmanian Community Forest Agreement is assisting forest contractors to become more competitive.”

Mr Lennon said: “The project is another spin off of the Natural Gas project and will see natural gas converted to LNG so it can be transported and used as fuel.

“LNG Refuellers Pty Ltd was formed in November 2006 to undertake a project which involves the production of liquefied natural gas (LNG) as an alternative to diesel,” he said.

“The project would see a conversion plant that would eventually allow for the supply of 65 trucks each travelling 230,000 km per annum.”

In total, the Ministers today announced $7.3 million worth of grants under the Community Forest Agreement Forest Industry Development Programs.

“Taking into account the $8 million grant to the Ta Ann Veneer Mill at Smithton announced on 14 March, this latest round of grants totalling $15 million will support over $50 million of investment in the Tasmanian forest industry,” Senator Abetz said.

“It brings the total of grants so far to $34 million to support projects worth more than $122 million.

“These grants will support projects that foster innovation in the Tasmanian forest industry.

“Many of the grants will support downstream processing and value adding, which is the way forward for our forest industry.”

Mr Lennon said that Clennett Industries intends to upgrade its Bridgewater and Moonah sites.

“Traditionally Clennett has processed large old-growth logs. The $847,500 grant will assist with upgrades that will allow the processing of smaller re-growth logs of poorer form and with more sapwood,” he said.

Mr Lennon said that he was pleased that the expansion of the Kelly Gang Timbers sawmill at Mole Creek would be assisted by a grant of $102,585 under the Community Forest Agreement.

“Kelly Gang Timbers purchased the Mole Creek Sawmill in 1998,” he said.

“The mill processes about 7,000 cubic metres of hardwood per annum and produces a wide range of products including garden stakes, railway sleepers, bridge decking, select and feature grade boards, pallets and vegetable bins.

“Kelly Gang will upgrade their sawmill to enable them to adjust to wood supply changes following the Community Forest Agreement.

“Equipment to be purchased includes a saw bench, docker, transfer deck, conveyor and a range of other items.

“Kelly Gang Timbers is s significant business for Mole Creek and we are delighted to be able to assist in line with the program guidelines.”

*The LNG Refuellers Pty Ltd project shareholders are linked to C.J. & R.S. Kelly Pty Ltd, K.J. Padgett & Co. Pty Ltd, Les Walkden Enterprises Pty Ltd, Aprin Pty Ltd, Morgan Group, Exeter Sawmill Pty Ltd and S.D. & L.A. Management Pty Ltd, who are major forest contracting enterprises in Tasmania.

Tasmanian Forest Industry Development Program – Round 6.

Select Logging Pty Ltd - Launceston - $57,500

Purchase of mechanical harvesting equipment to thin native re-growth forest.

Clennett Industries Pty Ltd. - Hobart - $847,500

Purchase and installation of new saw, kilns and racking machine at Bridgewater mill to cut short timber. Also purchase and installation of new planing, dust extraction and other equipment at Moonah mill.

Les Walkden Enterprises Pty Ltd - Launceston - $770,000

Purchase of mechanical harvesting equipment for thinning native forests.

Perotti Bros Enterprises Pty Ltd – Statewide - $429,487

Purchase of mechanical harvesting equipment for thinning eucalypt plantations to promote the production of high-value sawlogs and veneer logs.

LNG Refuellers Pty Ltd - Northern Tasmania $5,050,000

Construction and operation of a natural gas liquefaction plant and refuelling infrastructure for use by timber harvesting contractors.

A.G. & G.R. Padgett Pty Ltd – Launceston - $67,500

Purchase of an excavator to assist in the thinning of regrowth forests.

Tasmanian Country Sawmills Assistance Program

Kelly Gang Timbers Pty Ltd - Mole Creek - $102,585

Purchase of a new saw bench, decks, docker and other equipment at the company’s Mole Creek sawmill.