City of Kwinana Minutes – SMRC RRRC WCF Odour Issue – 8 September 2010
21. URGENT BUSINESS:
COUNCIL DECISION
MOVED CR ALEXANDER
SECONDED CR DUPAGNE
That Council deal with the one item of urgent business as presented in the Addendum to the Agenda.
21.1 W2E Facility Research Tour to Japan – September 2010
SUMMARY:
Waste management requires alternative waste technology and ‘waste to energy’ (W2E) meets this criteria. It is proposed that the Town participate in a W2E research tour to Japan later this month as it is critical to learn about the technology, gather critical knowledge and information relevant to local government and the local communities around their W2E facilities. It is considered that a W2E facility in Kwinana could have substantial benefits to the Town and the Kwinana communities and industries.
The legislative obligation under the Waste Avoidance and Resource Recovery Act makes it important to learn first hand the issues that are associated with the establishment of a W2E facility, and might potentially concern our industrial, and/or our residential community.
Kwinana will benefit from the Mayor and CEO participating in the W2E research tour to Japan, which can be funded from the Town’s Refuse Reserve Fund. Attendance will enable learning from the local governments partnering in this technology; provide a better understanding of the business models for power generation cost saving benefits; and provides the potential to gather information, knowledge, local impressions, and perceptions of the industrial, social and personal impacts on the Local Government and their communities where these W2E facilities are located.
OFFICER RECOMMENDATION:
That Council:
1. Authorise the Mayor and the Chief Executive Officer to participate in the W2E Research Tour to Japan, and
2. Approve the expenditure of $12,000 for the tour from the Refuse Reserve Account.
NOTE: ABSOLUTE MAJORITY OF COUNCIL REQUIRED
URGENT BUSINESS:
As a follow up to the 12 July 2010 Councillor’s Workshop presentation by Moltoni Energy, Council has been invited to consider participating in a W2E Research Tour to Japan.
The purpose of the research tour is to visit the actual operating plants of both the Westinghouse Plasma Corporation and Martin Grate (Mitsubishi) Waste to Energy facilities.
Due to the time limitation on the availability for access to the W2E plants this matter needs urgent consideration to be able to participate and make the arrangements to travel with the already organised research tour (27 – 29 September 2010).
DISCUSSION:
Council is at the ‘cross roads’ of how to manage its waste responsibilities to stabilise the steeply rising costs to the residences, businesses and industries in the medium to long term, and yet to also satisfy the state government objectives to achieve Zero Waste to Landfill by 2020.
Under the Waste Avoidance and Resource Recovery Act (WARR Act) Council must achieve the outcomes in Council’s Strategic Waste Management Plan adopted in 2008. The legislative obligation under the WARR Act makes it important to learn first hand about the issues that are associated with the potential establishment of a W2E facility in Kwinana.
This invitation to Council would provide essential information and knowledge on W2E as an Alternative Waste Technology (AWT). In Kwinana both organic and non organic waste continues to be disposed of to landfill and will in future attract Carbon Taxes which will progressively increase the costs.
Since the Moltoni Energy presentation to the Councillor’s Workshop, they have been actively engaged with the Kwinana Industries Council, its members and their own technology providers (Westinghouse and Mitsubishi) to progress the potential of a Waste to Energy project in Kwinana.
Moltoni Energy has advised that all parties are soon to enter into formal arrangements to establish a working group that will progress the necessary engineering, economical, environmental and community engagement modelling/assessment to enable this project to reach its maximum benefit for all parties.
The Town has been kept appraised of this matter and has been extended an invitation to join this group as a key stakeholder (however it is on the basis and understanding that the Town’s representation would be subject to agreed commercial confidentiality terms).
Referring to Moltoni Energy’s presentation at the 12 July Councillors’ Workshop, a question was asked if it was possible for the Town to learn more by visiting operating plants of both the Westinghouse Plasma Corporation and Martin Grate (Mitsubishi) Waste to Energy facilities. Moltoni Energy advised that unfortunately, there are no such plants in Australia.
Moltoni Energy have subsequently been working with both organisations to co-ordinate a potential visit to Japan, particularly as both these W2E facilities are local government owned plants. Moltoni has now advised they have been successful in securing placements for the next research tour to the type of plants referred to above. The proposed program is:
1. Travel to Japan on Friday night, to arrive on Saturday morning (25 September);
2. Visit the ‘Happy Valley’ Hitachi Metals (Westinghouse plasma technology) Plant (Monday 27 September);
3. Travel to Tokyo (Tuesday 28 September);
4. Visit one or possibly two ‘Martin Grate’ (Mitsubishi) plants (Wednesday 29 September);
5. Travel back to Australia (Thursday 30 September).
The plants to be visited are owned by the local governments of the areas the plant resides in, and their representatives will be present to answer questions, in particular ‘local government related’ questions like land planning, environmental, general community issues, and business plan arrangements.
The Japanese ‘business model’ is similar to that proposed by Moltoni Energy (vis. Local government supplies rubbish and shares the profits of power supply coming out).
There are no other plants in Australia to view that utilise the ‘thermal based outcome’ equipment. Such plants have not been built in Australia yet but clearly do operate effectively at overseas locations.
The tour to the Hitachi plant is scheduled to the above timeline because it only opens 3 to 4 times a year (and apparently very little notice is provided). A maximum of 15 people can attend the plant tour on each occasion. It is understood that a representative from Alcoa Kwinana (it wishes to research the business opportunities that the SynGas might offer) might also participate. Other people attending are understood to be a Chinese contingent and another local government group (but not from Australia). The opportunity to liaise with these delegates might also prove fruitful, particularly in respect to improving our knowledge on possible community concerns.
Attached is the detail on visits to the Happy Valley plant as well as a summary document on one of the Martin Grate plants that would be visited.
Given the time and visitor numbers constraint, Moltoni Energy has initially sought reservations for up to three delegates from the Town of Kwinana.
LEGAL/POLICY IMPLICATIONS:
Council under the WARR Act has approved its Waste Management Strategic Plan in 2008 as part of the SMRC Plan to achieve the state objectives to achieve Zero Waste to Landfill by 2020. Currently the Waste Authority is considering AWT to achieve the objective of zero waste to landfill by 2020.
The SMRC processing waste to compost is unable to achieve zero waste to landfill without another option like W2E to dispose of those materials that are not able to be composted which are generally the non organic fraction.
The Australian Government’s proposed Carbon Tax will make it imperative that Council is able to dispose of waste to a facility that is not landfill and W2E will greatly assist to achieve the state waste objectives, whilst removing the carbon tax charges to be levied for landfill waste disposal when introduced.
The cost of this W2E research visit, although not anticipated as part of the 2010/11 budget, is a legitimate cost that can be debited to the Waste Management Reserve account as it will provide important information to make the necessary judgement for future waste plans for the Town.
If the Town wishes to endorse the attendance of the Mayor and CEO, they would meet with suitable ‘recognition’ by the Japanese hosts – who are very formal and cherish visits by distinguished guests like a local government Mayor.
The Town would though, need to meet the cost of airfares (approx $3000 each), accommodation and some meals (approx $1500 each). Some meals are also provided by the Japanese hosts. With gifts for hosts (a Japanese tradition) and sundries, a total budget of say, $11 – 12,000 in total is required, although it is anticipated that this is a conservative estimate. Sufficient funds are available in the Refuse Reserve Account to accommodate this expense, but as it is ‘unbudgeted expenditure’, an absolute majority is required.
Whilst $11-12,000 is a reasonably modest sum in a $100m budget, both the Mayor and the CEO are very aware of the potential negative attention such a trip might attract from some, however as there are no Australian facilities to compare with, and therefore no Australia local governments we can communicate with, travelling overseas is the only option available at this time if Council wishes to secure first hand knowledge of potential community (industry and household) impacts of a W2E operation. Both the Mayor and the CEO would have preferred to have found a less expensive and (potentially) less controversial research methodology, however it would likely be equally as unpopular if we were to not participate in an ‘on site’ investigation, then find that any problems of the future could have been easily avoided for the want of the knowledge this trip might provide.
ENVIRONMENTAL IMPLICATIONS:
The environmental implication of the tour to Japan will increase Council’s carbon footprint. However, this is a short term increase and will be offset against the long term gains by moving into this AWT disposal option which is less environmentally damaging in the long term compared to landfill disposal of waste.
There is no similar W2E facility in Australia and it is a worthwhile research tour providing real knowledge and experience for Council to consume. The visit will help focus on the future waste management objectives and needs for all of the Kwinana community and its industries. On this basis the overall long term environmental outcomes will more than justify the short term increase in the carbon footprint.
STRATEGIC/SOCIAL IMPLICATIONS:
The Town’s Strategic Plan includes two relevant actions, to “Promote and implement best practice waste management and maximise the resource recovery from landfill to maximise reuse resource through the Southern Metropolitan Regional Council (SMRC) and continue to participate in the SMRC energy waste water and greenhouse gas reduction programs”, and to “Providing effective leadership to the community by focussing on the strategic needs of the Town and making decisions based on quality data and information”. The first relates to SMRC in particular, but the important aspect is to pursue best practice waste management and maximise the resource recovery from landfill. The second point highlights that good decisions are best made following to procurement of quality data and information.
There is a significant strategic gain for the Kwinana community and industries by visiting the W2E facilities in Japan and gathering first hand knowledge and information from the respective local government representatives.
Being able to see the W2E facilities in there relative proximity to the residential and commercial communities and to be able ask questions of the local governments where they are located will be valuable to being able to consider future developments in Kwinana and our ongoing membership commitments to the SMRC.
These opportunities should be seriously considered, as the social implications and strategic benefit of these W2E facilities are the AWT of the future, providing a secure long term waste disposal option with the production of energy and syngases, which in themselves provide additional economic growth opportunities.
RISK IMPLICATIONS:
Based on the information provided to the Council workshop and the cost of the study tour, the risk of engaging in this research tour is low compared to the benefits to Council.
COUNCIL DECISION
MOVED CR KEARNEY SECONDED CR S WOOD
That Council:
1. Authorise the Mayor and the Chief Executive Officer to participate in the W2E Research Tour to Japan, and
2. Approve the expenditure of $12,000 for the tour from the Refuse Reserve Account.
The Mayor re-entered the Chambers at 7:21pm.
The Chief Executive Officer re-entered the Chambers at 7:21pm.
