Latest news with #DavidMarriner
ABC News
18 hours ago
- Business
- ABC News
Boyer paper mill 'is unsustainable' without additional power for crucial upgrades, says owner
David Marriner The day that we took ownership, which was on the 14th of April, my wife and I were in Norway securing the delivery of a new electro-boiler system to make sure that we could, within 18 months, remove effectively that contamination from both the atmosphere and something that all Tasmanians could be pretty proud of. Because in fact, it's the equivalent. If you think about it, it's the equivalent of producing or removing 30 per cent of the cars off the roads of Tasmania. Leon Compton So you want to shift away from burning coal to run your operations out there? And you want to do that with electricity? David Marriner Well, not only are we, we are committed to do that, we have a federal government that come in and back us to the tune of $15 million, a dollar-for-dollar grant to effectively secure that outcome because they're very conscious as a federal government, very conscious of environmental issues, they're committed, they're absolutely, they were there in fact on the same day as we settled. So, you know, announcing all of that. And yet, you know, to my amazement, I sit in the middle of the commercial strip of Collins Street to be told, well, they're simply not the power. Leon Compton Is the issue that there's not the power for you to do this upgrade? Or is it that there's not power cheap enough to fit your business plan? David Marriner No, no, no. In fact, on the 17th of June, we were made aware that there would be potentially the ability to provide that additional power from Victoria, but the cost would be significant. And I just thought that, well, the whole idea for us was to produce a carbon neutral outcome, a clean energy element. The moment we go back to connecting to Victoria, we connect to dirty energy again. Leon Compton Is what you're asking for from the Hydro or indeed from the state's energy grid, power on the same terms as you're getting it under legacy deals that say it provided incredibly cheaply to major industrials? David Marriner Yeah, what we're keen to have, nothing more or nothing less than what the prices that have been provided to the other two or three equivalent major suppliers. We just want the same terms and conditions. We don't want to be paying more than what our competitors are. And so I'm absolutely shattered. I'm shattered and disappointed because we intended to build a factory, which we've just finished completing. As you know, the factory infrastructure that built the segments for the bridge, that was to convert to build now housing. And it makes no sense for us to continue with that if we can't get the power. Leon Compton So what happens now? What if you can't get power through Hydro or through the network here in Tasmania at prices that are competitive? What if you can't do that? David Marriner Well, obviously the mill is unsustainable like every other base load power customer is in Tasmania. The reality is we write a checkout today for another 4 million of coal, another $4 million worth of coal purchased for the next couple of months. And we ship it in from, we ship it in actually, Leon, from, you know, people would find this laughable. We, you know, from, we are now shipping coal in to furnish the mill from New South Wales. That has put an additional 12 million cost on our operation. $12 million additional cost because the political system forced the closure and access to coal in Tasmania to us. Why should we pay that? More importantly, ask yourself, why should 340 employees take the burden of stupid decisions? Why should they lose jobs?
Yahoo
a day ago
- Business
- Yahoo
340 jobs at risk as Aussie paper mill teeters
Australia's last remaining industrial paper mill is teetering under shock power shortages, with the owner warning that 340 jobs could disappear without any stabilisation in prices. Boyer Paper Mill chief executive David Marriner, speaking with the ABC this week, said he had been forced to shell out an additional $12m to ship in coal from NSW to keep the mill's operations running after Hydro Tasmania, a renewable energy provider, told him it would be unable to supply the mill with clean power. 'To my amazement, I sit in the commercial strip on Collins St to be told there's simply not the power,' he said. Mr Marriner is trying to electrify the mill, located about 35km north of Hobart, to make it carbon neutral but said he needed 'the same terms and conditions' on power as other industrial users. '(We want) Nothing more or nothing less than the prices that are being provided to the other two or three equivalent major suppliers,' he said. 'We just want the same terms and conditions. We don't want to be paying more than what our competitors are. I'm shattered and disappointed.' Without competitive rates, the mill would be 'unsustainable', he said, and 340 workers could lose their jobs. 'Ask yourself, why should 340 employees take the burden of stupid decisions? Why should they lose jobs?' Mr Marriner said. The mill formed a centrepiece of Anthony Albanese's re-election pitch during the 2025 campaign, pledging $24m in funding to help it switch from coal-fired boilers to electric boilers. 'Boyer Paper Mill is an iconic part of Tasmania's manufacturing story,' the Prime Minister said in April. 'It was Australia's first ever newsprint mill built in the 1940s, and thousands of Tasmanians have worked here over that time. 'We want to see the mill continue well into the future, and that is why we are committing up to $24m to help Boyer secure local jobs and supply chains and move forward with confidence towards a low-emissions future.' Energy Minister Chris Bowen said the decarbonisation of industry made 'good economic sense'. 'Decarbonising our industries and manufacturing isn't just good for bringing emissions down, it makes good economic sense, as companies switch to running on not just the cleanest but the cheapest form of energy (which is) reliable renewables,' he said. The power shock hitting Boyer follows other energy warning signs at major industrial hubs in Australia. Rio Tinto's Tomago aluminium smelter in NSW is reportedly close to shutting down on high energy costs. Tomago is powered by AGL Energy's Bayswater coal-fired power station but is pivoting to renewable energy. Negotiations over a new energy contract have troubled the smelter's operations for months. The AGL contract is due to expire in 2028. A shutdown at Tomago could impact 6000 jobs across the Hunter Valley region. Rio holds a 51.6 per cent interest in the smelter, which produces about 590,000 tonnes of aluminium each year or about 37 per cent of Australia's total production. Reports suggest the company has been in emergency talks with state and federal governments for a bailout in the past few weeks. Error in retrieving data Sign in to access your portfolio Error in retrieving data
ABC News
3 days ago
- Business
- ABC News
Australia's last paper mill, Boyer, told power grid insufficient for electric conversion
On the banks of Hobart's Derwent River lies Australia's first, and now last, paper mill. The Boyer Mill is a piece of history. It is also reliant on some historical technology — coal burners. Coal-fired boilers have been creating the steam used in the paper manufacturing process since the mill opened in 1941. "That steam is used for softening [wood] chips in the pulping process, but its primarily used for drying paper in the paper machines, it's critical to our operation," the mill's general manager, Patrick Dooley said. The mill's new owner, businessman David Marriner, wants to cut off its coal connection and bring in electric boilers. The Boyer Mill is Tasmania's fourth-largest carbon emitter. The switch to electric would cut the plant's on-site emissions by about 95 per cent — roughly the same as taking one third of Tasmania's cars off the road. There is just one problem — getting the extra electricity needed. Mr Marriner said he had been told by state-owned power company Hydro Tasmania that it could not supply him with power from the Tasmanian grid, due to a lack of availability. Instead, it would have to import electricity from Victoria, which Mr Marriner said was offered a much higher price. The Boyer Mill is one of the state's largest power users. It currently uses around 100 megawatts — the electric boilers would require another 45 megawatts. "I feel stressed and somewhat frustrated in the discussions and negotiations we've been having," Mr Marriner said. The new boilers have been purchased from a Norwegian company and would be ready for installing in 15 months' time. Hydro Tasmania chief executive Rachel Watson said Tasmania's power and supply were in balance. "Until new generation is built, any large base load increases would be met by increased gas generation or imports from the mainland," Ms Watson said. She said any energy it sourced would be based on the cheapest available. "At times, that can be above what a customer wants to pay. "Hydro Tasmania remains focused on achieving a sustainable commercial return for its owners, the people of Tasmania." Boyer's Boiler No. 5, which was installed in 1991, chews through about 88,000 tonnes of coal a year. Since the mill lost its Tasmanian coal source three years ago, all of it has been brought in by a chartered ship from Newcastle, New South Wales. "It's unloaded and stored at a Bell Bay site then we utilise our contract with TasRail to bring the coal on a daily basis," Mr Dooley said. That coal comes with a $12 million a year price tag. "Now we've added [up] all of that logistics in terms of chartering the ship, storing it, unloading it and storing it at Bell Bay and then reloading it and bringing it down here," Mr Dooley said. The upgrades received backing at this year's federal election, with Labor tipping in $24 million. Of that figure, $9 million was to "stabilise its operations and prepare major investments to decarbonise and diversify its production", with the remainder to be spent on the electrification upgrades themselves. This is not the first time the Boyer Mill's electrification plans have been knocked back due to its energy supply. Under the previous ownership of Norwegian company Norske Skog in 2023, the company's plans for electric boilers were halted, when its request for 50 megawatts was refused by Hydro Tasmania. When Mr Marriner purchased the mill in February this year, Liberal spokesperson Nick Duigan downplayed concerns about a lack of power. In response to Mr Marriner's concerns, Mr Duigan told the ABC there was energy "through" Hydro Tasmania. "Our major industrials have significantly discounted rates, as we've encouraged the economic development these businesses offer the state," he said. "When additional supply is requested, Hydro Tasmania commercially negotiates a price." Hydro Tasmania said the total capacity of its system was more than 2,600 megawatts. The last major addition to Tasmania's power grid was the 112 megawatt Granville Harbour Wind Farm in 2020. The Northern Midland Solar Farm will provide another 288 megawatts when it is commissioned in 2027, and Hydro has agreed to purchase energy. Many other projects have been tied up in approvals processes for years. Last week, a decision on approvals under the Environment Protection and Biodiversity Conservation Act for the proposed Robbins Island wind farm was delayed for the seventh time. However, a new 250 megawatt solar farm at Weasel Hill in the Central Highlands received federal approval this month. It does not have an expected completion date. Adding to frustrations, Mr Marriner said Hydro had exercised a contractual right to cut off power supply "multiple times" since he took ownership of the factory earlier this year. "We get a credit for that, but it doesn't necessarily offset the cost of a total shutdown," he said. He said it comes with little warning, and impacted production schedules. Ms Watson said the trigger was one reason why Tasmania's major industrial customers received cheaper power. "It is part of their contract and we always give advanced notice. This is a very common arrangement for major industrials in the National Electricity Market," she said. Mr Marriner also said Hydro had been unsure it could supply power from Tasmanian sources for another of his business interests. His pre-cast concrete factory at Bridgewater produced the 1,082 concrete segments for the new Bridgewater bridge. Last year he unveiled plans to expand and convert the factory, so it could create 1,700 homes a year, made from precast concrete. The Tasmanian Chamber of Commerce and Industry's Michael Bailey has been saying for two years that Tasmania is in an "energy crisis". He is frustrated that nothing has changed. "We're trying to grow industry, we're trying to build business, and it's impossible to do that without enough power," Mr Bailey said. He said the key piece in getting new generation projects moving was the Marinus Link. "What Marinus will bring then is the business case for those major wind production sites that we desperately need." It is a proposal for two 750 megawatt high voltage energy cables between Tasmania and Victoria, and would allow for more energy trading between the two states. The federal, Victorian and Tasmanian governments are due in August to make a final investment decision on the first cable. Ray Mostogl from the Tasmanian Minerals, Manufacturing and Energy Council said the state should be focusing on building a few very large generation projects, close to existing transmission corridors. Mr Mostogl said that could help avoid the cost of building new transmission lines and potentially cause less community angst. "It's not just power, it's power at the right price," he said. Mr Bailey said if any of the state's four major industrials — Boyer Mill, Liberty Bell Bay, Bell Bay Aluminium and the Nystar zinc smelter — were to close, it would have ramifications on the entire state's power grid. "Not only would we see the cost of transmission increase for all Tasmanian households, but we'd see much more insecurity across our network. We'd see blackouts," Mr Bailey said. He also said Hydro's ability to switch off power to the major industrials helped balance the network. Mr Marriner said he hoped "common sense" would prevail, and that the Boyer Mill would be able to access power at a cheaper rate, even if it were sourced from Victoria. But the first choice is for Tasmanian-made green energy. "If you go back in our history, the one great asset we do have is in fact clean energy, and we should be all very appreciative for that," he said.
