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Generation capacity of Gunns proposed Tasmanian pulp mill approximately 215 megawatts; 65 megawatts available to be sold into grid

Posted by gmarkets on 17 September, 2007

Criticism of the proposed pulp mill in Tasmania was based on speculation and misunderstanding, said Doug Parkinson, Leader of the Government in the Council, in the Tasmanian Legislative Council on 30 August 2007.

Wells report faulty: “The claim that Forestry Tasmania will subsidise the pulp mill by setting stumpage rates at less than half their commercial value is without basis,” Parkinson said. “This reveals a poor understanding in the Wells report of how stumpage rates are determined. The Wells report also estimates that the pulp mill will result in the loss of over 1,000 jobs in the tourism industry. It is pure speculation to derive these estimates from a survey of tourism operators that simply asked general questions on how they thought the pulp mill would impact on their business and on the Tasmanian brand.” Electricity estimates: “On the question of electricity generation, the honourable member for Huon sought confirmation of the amount of power forgone as a result of the contract for water from Trevallyn Dam entered into between Gunns and Hydro Tasmania. His estimate was that approximately 1 megawatt of electricity would be forgone, which is very close to the advice received from Hydro Tasmania of approximately 0.86 of a megawatt ,” said Parkinson. “In terms of the generation capacity of the Gunns pulp mill once operating, it is approximately 215 megawatts. Actual generation is likely to be between 155 and 170 megawatts, which would mean that at least 65 megawatts would be available to be sold into the grid.”

Reference: Doug Parkinson, Leader of the Government in the Council, Member for Wellington, Legislative Council, Parliament of Tasmania, Tasmania, 30 August 2007.

Erisk Net, 14/9/2007

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