A proposed $50 million plant at Westbury that would turn farm waste into renewable gas has secured a conditional commitment of up to $12.5 million in public funding.
The Westbury BioHub would convert up to 36,000 tonnes of organic waste a year into biomethane and organic fertiliser.
Solstice Energy chief executive Phaedra Deckart said the plant would take poppy straw from neighbouring Extract Tas, as well as waste from meat processing and fish farms.
At full production, it is expected to produce about 188 terajoules of gas a year, about 3% of Tasmania’s current demand.
The gas would be fed into the existing gas network, displacing some of the natural gas piped across Bass Strait.
“This is a milestone. It’s not a final decision. There’s more to be done on the project,” Deckart said.
The project still needs environmental and planning approvals, commercial agreements and a final investment decision, with community consultation now beginning.
Construction is planned to start in early 2028, with gas production expected in early 2029.
Deckart said Solstice Energy would invest $35 million and that construction would create up to 200 jobs.
The plant is also expected to produce about 12,000 tonnes of organic fertiliser a year and cut greenhouse gas emissions by about 13,300 tonnes of carbon dioxide equivalent annually.
The state government funding would come from the waste levy through the Waste and Resource Recovery Board and would only be paid once the plant is operating, based on the amount of waste it processes.
Deputy Premier Guy Barnett said the project was part of the government’s Northern Economic Plan and would benefit the agriculture and aquaculture industries.
“While we’re not yet providing funding, our conditional commitment gives the proponents the confidence to progress to the next stage,” he said.
Waste and Resource Recovery Board member Andrew Kneebone said the board’s role was to “bridge that gap between concept and commercialisation”.
The plant is proposed for the Valley Central Industrial Precinct at Westbury.
