Optimal secures land for first Australian bio-LNG plant

Optimal Group has purchased land in Westbury, Tasmania for what it says is the first bio-LNG production plant in Australia.

The 2-hectare land purchase follows the completion of a memorandum of understanding with BOC, a unit of Linde.

The two firms agreed last year to jointly explore the development of the bio-LNG facility at BOC’s micro LNG plant in Tasmania.

Under the deal, Optimal’s subsidiary, Optimal Renewable Gas would build a A$55 million ($37.8 million), 2.4 TJ/day waste-to-biogas plant adjacent to this facility.

The biogas plant would provide biomethane to BOC’s LNG plant, which the firm would process into bio-LNG and distribute it to its and Elgas customers in agriculture, food processing and other industries. Elgas is a unit of BOC.

“This is an exciting first step for this project. The site, adjacent to BOC is perfect for the development of this facility and provides ORG with excellent access to feedstocks from surrounding businesses,” Optimal CEO, Craig Dugan, said in a statement.

He added the land purchase would allow the company to begin preliminary work on the approvals while it continues to work with the local Tasmanian food, agriculture and aquaculture industries to secure feedstock.

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