Pellet plant promoted

•   David Hamilton a champion for co-operatives.

By Tony Scott,
July 14, 2021

Proponents of a wood pellet plant for Scottsdale believe increasing uncertainty in the economy and politically might build investor interest in the project.

The Grand Launch of the Dorset Renewable Co-operative was held on the site of the planned plant last October.

But so far only a little more than two per cent of the targeted $3million needed to build it has been raised.

The co-operative’s chairman David Hamilton said the model of a co-operative built resilience in a community.

“In the downturn that affected Dorset 10 years ago the decisions to close timber mills and before that vegetable processing were made by company boards a long way from here.

“The ramifications for the community just weren’t important.”

The plan is to have local residents make up about 60 to 70 per cent of the membership of the co-operative and the rules of a co-operative, as opposed to a company, allow for members to have one vote each irrespective of the value of their holding.

“It’s a very democratic model and means more aspects than just the bottom line can be taken into account when deciding issues of the co-operative’s operation.”

Mr Hamilton said the Covid epidemic and geo-political concerns were also driving ambitions for people to have more control over their means of production and particularly supply.

He resigned as chair of the associated Dorset Renewable Industries recently, partly to devote more time to a membership drive for the co-operative.

“There was plenty of keen interest at the launch, when people were given a disclosure statement to take home to read.

“But there’s not been a lot of follow up.”

He explained to sign up people on the launch day without giving time for proper consideration was considered a “bit dodgy”.

At the moment only about 40 per cent of members are Dorset residents.

“We really want to increase that proportion as well as the overall numbers.”

The minimum buy-in was $250 and there’s a maximum of any shareholding to 20 per cent – a cool $600,000 in the initial target.

With administration for the co-operative being met by Dorset Renewable Industries, it means there’s practically a guarantee of getting money back if the target can’t be reached and it’s decided to wind up.

There’s a timetable to have the money raised by April to May next year in order that equipment can be ordered and installation start around October 2022.

TasNetworks has a lease of the building at Ling Siding, that’s proposed to accommodate the pellet plant, due to expire then.

Mr Hamilton said the business plan for the plant relied on supplying pellets for domestic home heating, but it could look at bulk supplies, which could be very competitive with other energy sources particularly to heat water at hotels, dry cleaners and dairies.

Once the factory was generating profits the co-operative could decide the proportions to be returned as dividends or investment in other projects.

The former Exxon-Mobil staffer said the fossil fuel industry was under pressure globally and couldn’t be expected to have much sympathy for small and distant customers like Tasmanians.

“In an instance like that a bio-fuel plant, based on locally grown canola could be a sensible option.

“It’s renewable and brings both supply and manufacture close to home rather than having to rely on imports, because the past few months have shown how problematic that can be.”