ECONOMIC DEVELOPMENT QUARTERLY
and development to ensure the hub continues to
develop new products to supply new markets, as
existing markets change or contract. In theory a
successful regional project that truly enters into the
bioeconomy can generate the same or even more
revenue from the secondary biomass resources
as the primary products can achieve, potentially
doubling the Gross Regional Product from each
hectare in production.
Taking a region into the bioeconomy is not without
its challenges and barriers. Perhaps one of the
greatest barriers is engaging all key stakeholders
to connect to the potential such a regional project
would offer and appreciate the benefits that
collaboration can achieve.
A bio hub project is defined by the available
biomass, however biomass can’t be considered
available until the owner of that biomass commits
it in principle to the project. Once again, these
stakeholders need to understand the value to them
of doing so when they could attempt to reap the
economic benefits in a project of their own. The
more biomass is given a value the more likely
holders of it will consider more carefully how they
allocate it.
Bio hubs are also not a well ingrained technology
in Australia and this can lead to challenges around
obtaining approvals, as key agencies are not
equipped with the guidelines yet to assess these
projects. This can lead to extensive delays and
potentially even regulatory barriers to projects
moving forward. As more projects roll out across
the country this problem will dissipate and projects
will be able to more easily understand and meet
the required guidelines. Government can also play
a key role in this area by looking at case studies
of existing projects and understanding where
approvals may have been a barrier.
Investment is another perceived barrier to these
projects not only in the scoping and feasibility
phases when viability is completely unknown,
but ultimately any infrastructure will also require
investment. Given the unknowns around biomass
commitment in a region, the cost of a large
feasibility study can be considered a risk as no
viable project may result and would likely be
best enabled with some financial support from
government.
The infrastructure itself can then require a
significant investment although at this point in a
well-planned project, viability is assured and should
prove attractive to private investment. The likely job
creation and new economic activity aspects would
also appeal to government funding and if return on
investment calculations can be improved with the
use of government funding the attractiveness to
private investors is also improved.
While unquestionably challenges exist in what is
a relatively novel concept in Australia the potential
benefits are significant. With regional businesses
and industry in the driving seat, in collaboration with
Government and Government agencies, biomass
is a regional competitive advantage there for the
taking.
ABOUT THE AUTHOR
Dr Elizabeth Perkins
Manager, Investment Attraction
and Infrastructure
Regional Development Australia
Limestone Coast.
E: [email protected]
Dr Elizabeth Perkins is an
experienced leader with a track
record in financial management,
team leadership, strategic planning and project management.
Her PhD and research background is uniquely coupled with
experience in managing complex facilities in challenging
environments. After growing up on the family farm near
Penola, Elizabeth completed a Bachelor of Science (Honours)
alongside a Diploma in Languages (Mandarin Chinese) at
the University of Adelaide in 2005. Elizabeth worked at the
University of Queensland’s Heron Island Research Station
where she was promoted through the ranks to become the
Station Manager in 2012. Elizabeth has been with RDALC
since 30 October 2017.
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