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2010). Table 4.2 presents a summary <strong>of</strong> some potential products, and an assessment <strong>of</strong> the parameters<br />

above.<br />

Table 4.2 indicates that a large scale Mallee Industry would potentially very significantly impact on<br />

the current value <strong>of</strong> a number <strong>of</strong> products. For example, current producers <strong>of</strong> eucalyptus oil would see<br />

a dramatic reduction in the value <strong>of</strong> their product if even a small percentage <strong>of</strong> the potential<br />

production <strong>of</strong> mallee oil entered the market they are currently targeting. As part <strong>of</strong> an industrial<br />

process however, even at the anticipated dramatically reduced oil value, oil extraction could be an<br />

important component <strong>of</strong> overall economics <strong>of</strong> a larger industry.<br />

Other high value markets are generally low product volume, such as thermal energy displacement in<br />

local industries such as feedmills and abattoirs, and the even smaller potential market as local<br />

electricity production utilising rapidly developing technologies such as Organic Rankine Cycle<br />

systems to convert low grade thermal energy to electricity to displace diesel electricity generation<br />

units.<br />

Potential higher value uses without volume limitations include conversion utilising gasification or<br />

pyrolysis to liquid fuels. Current technology converts the syngas and other gaseous products to heavy<br />

oil, which can be utilised directly as a furnace fuel, or refined into more traditional products. More<br />

recent development has been towards “reforming” the gas products over a catalyst to produce<br />

synthetic diesel or avgas, and limited by-products. Whilst substantial research and development is<br />

being undertaken into this technology and results are exciting, it is not yet commercialised.<br />

Indications are that overall conversion efficiency is in the order <strong>of</strong> 55%, although higher efficiencies<br />

are potentially achievable (Holmgren pers com, 2011). Charcoal and combustible gasses are<br />

additional products.<br />

Table 4.3- 4.9 analyses each potential product, including anticipated industrial product value, and<br />

extraction/conversion costs to derive values for the crop component being utilised as feedstock for a<br />

process.<br />

4.4.1 Mallee oil<br />

Available data indicates that average oil recovery from steam extraction is approximately 10 kg/green<br />

tonne from whole trees or 18 kg/green tonne from leaf and twig components. This is nominally<br />

consistent with minimal extractable oil in the wood component <strong>of</strong> the tree, and varies according to<br />

leaf age, season and other agronomic parameters. The energy required for steam extraction <strong>of</strong> the oil<br />

is typically 10 kg <strong>of</strong> saturated steam/kg <strong>of</strong> oil, however allowance must also be made for heating <strong>of</strong><br />

the biomass prior to extraction commencing.<br />

The extraction process results in a leeching <strong>of</strong> much <strong>of</strong> the water-soluble alkali products from the leaf.<br />

The resulting liquor has some potential value as a fertiliser because <strong>of</strong> this, however energy would be<br />

required to concentrate it to reduce the product volume for cost efficient transport. More significantly,<br />

research indicates that the oil extraction process can actually increase the value <strong>of</strong> these components<br />

for some downstream uses such as metallurgical charcoal. The process would also be anticipated to<br />

increase the value <strong>of</strong> these products for various thermal uses because <strong>of</strong> the reduction in specific<br />

alkalis.<br />

After the extraction process, the leaf and twig material would have to be dried before further use. The<br />

use <strong>of</strong> thermal drying utilising a proportion <strong>of</strong> the material after oil extraction would consume in the<br />

order <strong>of</strong> 35% <strong>of</strong> the product. Alternative strategies include solar drying, by spreading the product in<br />

thin layers over a large area. This would involve a number <strong>of</strong> operations and cost to spread, turn and<br />

collect the material.<br />

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