MEDIA RELEASE
Sugar Mills confront crisis in energy security
Members of the Australian Sugar Milling Council (ASMC) have met for 2 days in Brisbane to
consider critical issues around long term energy security and the emerging crisis of
electricity prices.
ASMC CEO Dominic Nolan said the sugar milling sector in Queensland can be a major part
of the solution to the death spiral facing the Queensland electricity model.
“As electricity prices continue to increase, the Queensland government will face growing
financial pressure over stranded electricity assets.
“Electricity prices in Queensland are excessive compared with other states and the rest of
the world. They are about to get even worse for regional Queensland unless we can
disrupt the death spiral”, Mr Nolan said.
Sugar milling businesses have identified a potential $1 billion in investment at existing mill
sites in Queensland, contributing some 8,500 GWh of regionally generated renewable
electricity per year.
Generation in regional Queensland lowers network costs leading to lower consumer prices.
It also delivers greater energy security, sustains future business development, and delivers
jobs growth in regional Queensland.
Mr Nolan said “Critical to this investment is maintaining the legislated Renewable Energy
Target at 41,000 GWh.
“Reforming the state’s electricity market has to be a priority for the Queensland
Government – but having a RET that promotes real investment in a range of renewable
energy technologies is fundamental.”
Australian Sugar Milling Council – 25 March 2015
For further information contact Dominic Nolan CEO – 07 3231 5000 / 0419 287 734
Background
 The Australian Sugar Milling Council represents 95 percent of raw sugar production
and 100 percent of raw sugar exports.
 The Australian sugar industry directly employs 16,000 people, predominantly in
regional Australia.
 Australian sugar mills generate electricity and steam by combusting bagasse, the
left over fibre from crushing sugarcane for raw sugar production. This is carbon
neutral, as recognised under the Kyoto protocol.
 The industry has invested some $600 million since the scheme was introduced, with
approximately 0.5 GW installed capacity, generating around 1,000 GWh per year,
of which more than 500 GWh is exported to the grid.
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The sugar milling sector has identified an additional $1 billion in energy efficiency
and cogeneration projects at existing mill sites, representing an additional 1 GW
installed capacity in regional Australia, and around 8,500 GWh of additional export
to the grid.
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