Hunter Business News

Hunter industrialist honoured -- Insulation manufacturer looking at Steel River for $160 million plant -- Sandvik to consolidate NSW and QLD sites -- Xstrata to inject billions into Hunter Valley coal projects -- Newcastle bidding for $100 million smart grid/smart city project

Hunter industrialist honoured

One of the Hunter’s leading industrialists and a foremost business advocate, Neville Sawyer has been named Hunter Business Person of the Year. Hunter Business Chamber President, Karen Howard said that Mr Sawyer’s career achievements were admired throughout Australia and for many in the Hunter represented what could be achieved by determination and commitment.

Neville Sawyer co-founded a small electrical and electronic business, Ampcontrol in 1968 and went on to gain success internationally from an Australian reputation for excellence in service and products. Ampcontrol now employs more than 800 people in Australian locations and in China, New Zealand and the United Kingdom. Ms Howard said Mr Sawyer had been the President of the Australian Chamber of Commerce and Industry – the peak business body – and had been named among Australia’s Top Most Influential Engineers. He established the Neville Sawyer Scholarship in Business and Law for residents of the Hunter. He was awarded the AM in 2006.


Insulation manufacturer looking at Steel River for $160 million plant

German insulation manufacturer, Knauf Insulation – the second largest insulation manufacturer in the world – is considering building a $200 million glass wool manufacturing plant at Steel River, Newcastle. The plant would be built on a 23 ha site located on the Pacific Highway, Mayfield West, within the Steel River Estate and would have a production capacity of between 60,000 and 80,000 tonnes annually.

Knauf Insulation is a manufacturer of building products including thermal and acoustical fiberglass insulations for residential, commercial, industrial and metal building applications. Presently the company is also considering a site at Ipswich in Queensland, however Newcastle is reported to be the front runner for the plant.


Sandvik to consolidate NSW and QLD sites

Swedish company Sandvik Mining and Construction is to consolidate its NSW and Queensland operations at Heatherbrae, near Raymond Terrace. The NSW Government has approved a significant assistance package for the company that will see an investment of more than $65 million and 150 jobs into the Hunter Region. The assistance package has been supported by Port Stephens Council which has also facilitated the process by agreeing to sell Sandvik 16 hectares of its own land. It is believed the “supersite” will secure up to 600 jobs and generate 150 more.


Xstrata to inject billions into Hunter Valley coal projects

Confidence in the Hunter Valley’s mining industry continues with Xstrata Coal announcing that it is spending almost $2 billion on projects in the region. Xstrata operates several mines, mainly near Singleton and Muswellbrook, and is also developing the big Mangoola mine, formally known as Anvil Hill. The company’s group executive, Mick Buffier said there are exciting times ahead for Xstrata. “We’ve spent $1.8 billion on projects, predominantly in the Hunter Valley, bringing on the new Glendell operation, and expanding Liddell, $350 million at our Blakefield operation that will replace Beltana, but most importantly we’ve got the large Mangoola project coming on, spending $1 billion there,” he said.


Newcastle bidding for $100 million smart grid/smart city project

By Paul Budde, Paul Budde Communications

The City of Newcastle has shown interest in becoming the demonstration site for the government’s $100 million investment in a new smart grid commercial scale demonstration project that it is linked to the National Broadband Network. Smart Grid Australia asked for $50 million for demonstration projects (see www.smartgridaustralia.com.au) but the industry has seen that the Government will provide $100 million in 2009 10 for what is called the National Energy Efficiency Initiative to develop an innovative smart-grid energy network. This will be the test case for the deployment of smart grids throughout Australia.

Combining broadband with intelligent grid technology and smart meters in homes, this demonstration project will enable greater energy efficiency and better integration of renewable energy sources, such as solar and wind power. Funding will be provided – through a competitive process – to a consortium of state and local government, public and private energy companies and other private sector investors for the large scale demonstration of integrated smart grid technologies.

This initiative builds on the Government’s investment in the National Broadband Network, household energy efficiency and renewable energy. It includes the $3.9 billion Energy Efficient Homes Package that provides rebates for the installation of insulation and solar hot water systems, the new Solar Credits Scheme supporting home micro-generation, and the expanded Solar Cities program.

However, in 2009 some Government initiatives such as the solar grant scheme and renewable energy certificates were changed or replaced by alternative schemes. The renewable energy certificates are to be superseded by new “Solar Credits”. The solar grant scheme provided a rebate payment in relation to the cost of installing a renewable energy generator. Renewable energy certificates were an attempt to create a market for renewable energy. Certificates could only be created by eligible accredited renewable energy generators and were equivalent to one megawatt hour of renewable electricity. The Renewable Energy Act required energy retailing firms to purchase these credits. The form of generation was typically solar water heater installations or small scale generation units based on wind systems, small hydro-electric systems or solar technologies.

Smart grid technology uses sensors to monitor electricity supply across distribution networks using communications networks, such as broadband technology. Smart grids help to more easily integrate renewable energy like solar and wind power into the grid, and enable energy generated in homes, schools and businesses to be stored and shared. Combined with smart meters in homes, this technology will allow consumers to access immediate information on how much energy they are using, at what cost, and how they can save money. It will also allow for more efficient and reliable network operation.

Work has started to identify opportunities to demonstrate this innovative smart grid network through the National Energy Efficiency Initiative. Subject to an implementation study – which will study the business case – the demonstration project will lead to an integrated system of renewable energy, smart grid and smart meter technology and infrastructure in one Australian city, town or region. It will bring together electricity power generation, transmission and distribution providers as well as private partners and IT experts, and will inform the wider national deployment of smart grid technologies.

It will also examine links with the National Broadband Network and other infrastructure projects such as water and gas and will work closely with the Ministerial Council on Energy’s National Stakeholder Steering Committee providing advice on the national smart metering program. By investing in this project now, Australia will be better placed to take advantage of the capabilities of the National Broadband Network, including the rollout of smart grid networks across the country.

The Government has invested heavily in energy efficiency and is determined that Australia now takes the next step to harness new technologies that drive even further energy efficiency. The National Energy Efficiency Initiative will position Australia to be at the forefront of global efforts to use energy more efficiently as part of our broader commitment to combat climate change.

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