Pellet exports to resume

Albany-based Plantation Energy's biomass fuel pellet facility is to be up and running by April after a three-year shutdown.

The export company was mothballed in January 2012 and will export to Korea and Japan from late May or early June, if approvals are secured.

Plantation Energy manufactures biomass pellets for export, used instead of coal to reduce carbon emissions.

Gavin Harper, chairman of holding company Renewable Heat and Power, said the company was ready to resume operations.

He said the business was now financially viable because of improved operating efficiencies and the lower value of the Australian dollar.

"There are two main things - one is operating efficiencies, things that could be done better, improve process flow and operating costs, things like harvest logistics and storage at the port," Mr Harper said.

"Also, the Australian dollar had devalued considerably, which has made us much more competitive."

Mr Harper said 12 to 15 people would be employed at the plant and it would also hire harvesting and hauling contractors.

"There is a flurry of activity going on finalising contracts, financing and recruitment," he said.

Mr Harper said they hoped to absorb 350,000 to 450,000 tonnes of bluegum a year, which would be positive for the local economy and bluegum industry.

Plantation Energy exported 43,138 tonnes of biomass pellets in 2011-12 and 76,782 tonnes in 2010-11.

"Albany's plantation resource is one of the best in Australia, making good use of that and getting it into the export market will be very positive," Mr Harper said.

"Part of the project will also be growing plantations for dedicated energy purposes."

Mr Harper said he could not confirm investment partners and supply agreements, as some contracts were yet to be finalised.

Southern Ports Authority Port of Albany chief operating officer Brad Williamson said the port had been working with the company and environmental approvals were still needed.

Plantation Energy will no longer use a storage shed at Albany Port, but will use a mobile ship loader for product trucked in to be loaded directly on to vessels.

Mr Williamson said the company would make use of other services at the port, including tugs, stevedores and shipping agents.