Shoalhaven Starches Gas Turbine Co-Generation Project

Shoalhaven Starches Gas Turbine Co-Generation Project is a large-scale industrial energy efficiency project located at the Shoalhaven Starches manufacturing facility in Bomaderry, New South Wales. The site sits on the northern bank of the Shoalhaven River, directly adjacent to the major regional centre of Nowra and approximately 160km south of Sydney. Registered in June 2021, the project is a significant infrastructure upgrade for the Manildra Group, which operates the facility, the largest wheat starch and gluten plant of its kind in the world.

The project operates under the Carbon Credits (Carbon Farming Initiative, Industrial and Commercial Emissions Reduction) Methodology Determination 2021. This methodology credits emissions reductions achieved by upgrading or replacing equipment to improve energy efficiency or by switching to less carbon-intensive fuels. In this specific instance, the project involves the installation of a new gas-fired cogeneration plant, consisting of two GE LM2500 aeroderivative gas turbines and Heat Recovery Steam Generators (HRSGs). This system generates approximately 60MW of electricity and process steam, allowing the facility to transition away from coal-fired boilers and grid electricity, effectively eliminating coal from the site’s energy mix.

The Shoalhaven region is characterized by a high-rainfall coastal climate and fertile alluvial soils, which historically supported a robust dairy and grazing industry surrounding the urban centres. While the immediate project area is zoned for heavy industrial use, the broader landscape is a mix of agricultural pasture, forestry, and growing residential developments. The location on the river floodplain requires careful management of water and environmental impacts, which are central to the site's operational licenses.

A notable feature of this project is its scale and financial backing; it received an $85 million loan from the Clean Energy Finance Corporation (CEFC) as part of a broader $190 million investment. By switching from coal to natural gas and utilising waste heat for steam generation, the project is estimated to reduce the facility's carbon emissions by approximately 40% (over 300,000 tonnes annually). The upgrade also included the construction of a dedicated gas pipeline to connect the facility to the Eastern Gas Pipeline.