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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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