The Green Triangle Pellet Mill earmarked to be constructed adjacent the Mount Gambier Regional Airport has been given the green light.
Grant District Council previously entered into agreements with Altus Renewables in May last year to approve the development.
However, in August last year the company had been placed into administration.
Subsequently, the ‘Green Triangle Project’ was placed on hold pending the outcome of that process.
In January this year, Altus Renewables was purchased by Albioma.
In a report to council, acting chief executive Gary Button said council received advice that it was Albioma’s intention to proceed with the Green Triangle Project.
It is anticipated when in operation the plant will attract a number of B-double trucks during the day and night.
It was identified the intersection between the Riddoch Highway, Airport Road and Hutchinson Road would require realignment to minimise traffic impact.
The $120m renewable energy plant will produce upwards of 300,000 tonnes of industrial specification pellets each year and generate an estimated $64.1m for the local economy.
In June, council was provided with the details for the new company, Mount Gambier Biomass Pty Ltd.
In order to proceed with the road closure and transfer of land process, the original resolution for Altus Renewables will be replicated in the name of the new company.
At its July monthly meeting council approved the request to sell Hutchinson Road to Mount Gambier Biomass Pty Ltd for $28,183.
Strategy and Governance coordinator Brittany Shelton said council’s Land Disposal and Asset Policy was used to determine the purchase price.
“The way it is calculated is our policy stipulates we cannot just close a road and create a new certificate of title. That portion has to be amalgamated into an existing title,” she said.
“We take site value from existing title that’s going to be amalgamated and we use that to calculate the per hectare amount.
“My recollection of that report is council did seek some appraisals but not formal valuations for that portion of road reserve.”
Cr Karen Turnbull questioned the impact on land facing the Riddoch Highway as well as application extension.
In response Mr Button said, as per the report from April 2023, land will be altered from a cross road to two T-junctions.
“The new company has acquired the rights to purchase a slither of land from that north-western corner of the block to allow that road to be realigned,” he said.
“The road realignment and road closure, part of the resolution was that any neighbouring properties that rely on that road for access will be granted right of way.
In addition, he said application extension has been approved by State Planning Commission to 2025.
Mr Button said council was now waiting to work with the operators in regards to the land acquisition of the road reserve and realignment.
“The realignment has had some involvement with the Department of Infrastructure and council is now comfortable with that interception being offset as it is far safer than if it stayed as a crossroads,” he said.