Jobs go as facility closes

Industry in the Great Southern will be dealt a blow later this month when Plantation Energy’s biomass fuel pellet facility closes indefinitely, putting 20 staff out of work.

Picture by Laurie Benson: Plantation Energy’s Albany facility production administrator Gordon Parker with a handful of the biomass pellets

After nearly two years of performing below expectations, the Albany-based export company, which set out to create a carbon-neutral, coal-alternative fuel source from non-commercial plantations, will be “mothballed” on January 27.

Plantation Energy Australia chief executive Kevin Heydt said the company fell well short of achieving its projected 250,000 tonnes of exported biomass pellets each year since it began operating in 2010.

He blamed this on the cost of producing the pellets, which was inconsistent with their international sale price.

“It’s a function of two things, as you know the forest industry has changed quite significantly and the availability of suitable fibre has changed and caused challenges to the business, coupled with a very high Australian dollar relative to our trading partners where we sell the pellets,” he said.

“This makes the whole proposition really uneconomic and it has been for some time.

“We’ve persevered and the major shareholders have sunk additional money into the business on the basis of hoping for a turnaround in both of those factors, or a massive change in the global pellet market, but that hasn’t eventuated.

“Six months on, rational economics suggests the decision must be made.”

Mr Heydt said it was very unfortunate to have to cease work on an important project with a dedicated team of staff.

“There are 20 good people that we have to let go and I think everyone has a sense of pride of what’s been achieved there and we’ve been in happy association with Albany. It’s upsetting for everyone,” he said.

Should the economic climate become more favourable, Mr Heydt said the facility might reopen.

Gordon Parker, who works at the facility as production administrator, said it was disappointing the current economy could not support the venture.

He said employees were now looking for work outside of Albany.

“I’ve had a good job and good money, the company has looked after me and I really love Albany,” Mr Parker said.

“I don’t particularly want to go to the mines but I’ve got a young family and to earn…the sort of money we need to upkeep mortgages and commitments, some of us may have to leave Albany.”