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Table 4.9 presents an estimation <strong>of</strong> the value <strong>of</strong> chipped mallee as a fuel for electricity generation,<br />
under three scenarios:<br />
• as a product for co-fuelling in large coal fired power stations ,<br />
• Local substitution for grid power in areas with limited grid supply and;<br />
• In a stand-alone facility to replace diesel gensets.<br />
In the first and last example, transport <strong>of</strong> the product to the end user would be a significant<br />
consideration, as coal fired power stations are not generally sited near potential Mallee production<br />
areas and large diesel gensets tend to be located near remote mining operations. In the second<br />
example, the local power generation is displacing local grid supply, but nominally at full retail cost.<br />
For the purposes for analysis a value <strong>of</strong> $200/MWhr is assumed.<br />
Table 4.9 Value <strong>of</strong> Mallee woodchip for electricity generation.<br />
Electricity Co-fire with Coal Local ORC<br />
Grid Displacement<br />
Local ORC<br />
Diesel<br />
Displacement<br />
Product Value ($/MWhr) $ 80 $200 $ 350<br />
Process cost (%) 10% 20% 20%<br />
Nett product Value $72 $160 $280<br />
Component Used whole tree whole tree whole tree<br />
Energy Recovery Efficiency 30% 20% 20%<br />
Energy Recovery GJ/t 3.04 2.02 2.02<br />
freshweight whole tree<br />
Value/t freshweight whole $ 60.80 $90.00 $ 157.52<br />
tree<br />
Residual/co-product<br />
Mallee Oil / Bio-Char / Process heat<br />
Co-Product value.<br />
Extracted Mallee Oil, limited Bio-Char, process heat<br />
4.4.8 Summary <strong>of</strong> Crop Component Value<br />
The above analysis indicates that products from Mallee can nominally be categorised into three<br />
categories:<br />
• Products with high value but limited potential market;<br />
• Products which have co-products with significant potential combined value, and;<br />
• Products which are consumed in the nominated process, and have a single product value.<br />
Table 4.10 presents a summary <strong>of</strong> the value <strong>of</strong> recoverable/derivable components from the range <strong>of</strong><br />
different potential products, and an indication <strong>of</strong> the potential residual value in co-products.<br />
Products with high value but limited market include:<br />
• Boutique oil production, and;<br />
• Activated charcoal<br />
Both these products also have significant potential for additional revenue from co-products. The oil<br />
extraction process enhances the value <strong>of</strong> leaf and twig material for other uses, whereas the production<br />
<strong>of</strong> activated charcoal results in the liberation <strong>of</strong> significant quantities <strong>of</strong> combustible gas and heat,<br />
both which can be used in downstream processes.<br />
Local thermal and electricity supply in remote areas is potentially a high value product, however there<br />
is probably limited scope for co-products except the potential production <strong>of</strong> mallee oil.<br />
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