The future of a pellet plant on the outskirts of Mount Gambier is in limbo after the company planning to build the multi-million dollar renewable energy plant entered into receivership.
Altus Renewables had plans to build a plant that would operate around the clock, turning forestry waste into bioenergy pellets.
It was anticipated the plant would produce up to 300,000 tonnes of white wood bioenergy pellets per annum.
Development of the $120m renewable energy plant received support from Grant District Council in May when it had approved Altus Renewables to acquire a portion of road reserve to enable access to the proposed new facility.
The plant was proposed for land along Hutchinson Road at Mingbool, adjacent to the Mount Gambier Regional Airport.
Neighbouring residents had opposed the pellet plant proposal, raising concerns about emissions from the facility.
Wood Beca had been working with Altus since 2018 to progress the development of the project.
According to Altus, once open the plant was to be the largest pellet manufacturing facility in Australia, and the first of its kind to be completely powered by biomass.
Now that it has entered into receivership, Grant District Council elected member Karen Turnbull questioned a land application matter at council’s September monthly meeting held on Monday.
“What will happen to the land application for Hutchinson Road process given the applicant, Altus, is in receivership?” Councillor Turnbull asked.
Council’s chief executive Darryl Whicker responded to the question.
“Council has confirmation from the State Planning Commission that an extension of time has been granted until November 3, 2025,” he said.
“Altus essentially has until 3 November 2025 to substantially commence the project.
“The powers to grant an extension of time come from the Planning Development and Infrastructure Act.
“Council understands that Altus may be sold as an entire company or for its assets, or combination a combination of the two structures.
“Therefore, there may be suitors for the Green Triangle Project.
“The legal rights to the use of any development application is fully transferable to any subsequent owners of the land.”
FTI Consulting had given the company’s suitors until September 15 to prepare their indicative bids for the business.
FTI will assess the indicative bids and funding arrangements before setting a timeline for final bids.
It has been reported Altus made industrial-grade wood pellets from pine sawdust, which the company acquired from other operators.
Its accounts indicated raw costs squeeze, showing the company lost $3.48m in 2022 compared with a profit of $582,000 a year earlier.
While its revenues rose 24% to $14.14m in the year, raw materials costs lifted 43.8% to $5.2m.
The accounts blamed the loss on delays in upgrade works at its plant, investment spending to progress the Green Triangle Project and foreign exchange rate exposures.
Australian Securities and Investments Commission published a notice on August 11 that administrators had been appointed.
Firm McGrathNicol was appointed voluntary administrators and FTI Consulting as receivers.
A first meeting of the creditors of the company was held on August 23.
