Q) What is happening with the $10,000 I contributed
to the B.I.G. Co-op Ltd (Co-op) for the R&D project?
A) The Co-op is undertaking negotiations for a direct interest
in the technology and construction of a Relocatable Biomass
Processor (RBP).
Q) Can I get back the $10,000 I contributed?
A) No. However in the event that the machine can not be built
or the Co-op can not secure a major stake in the technology
for its shareholders, the board reserves the right to make
a pro rata refund less expense incurred in the project.
Q) What is the 50 cent per tonne contribution buying
me as a shareholder?
A) The 50 cents will buy you shares in the Co-op which remains
committed to maximise the returns of the businesses of the
shareholders through development of the Energy Park and other
commercial ventures.
Q) What happens if 75% of shareholders support is
not reached?
A) The Energy Park proposal will not continue and the offers
from investors in the Energy Park will disappear.
Q) What price will I get for the 15% of cane I commit
to the Co-op?
A) Fair market price as negotiated subject to:
1. Crop and /or juice is collected from farm
2. Crop and /or juice collected from the farm is paid in full
in 28 days
3. In exchange for the five year commitment the shareholder
receives a stake in the Energy Park development through the
Co-op.
Q) What will happen to the fibre when the juice is
taken from my cane at my farm?
A) There are a number of options but primarily the fibre would
be returned to the soil as an ameliorant. The Co-op in time
will seek to value add through the successful development
of ethanol from bagasse technology or niche marketing in similar
stockfeed.
Q) Who will collect the juice if I am not near the
Energy Park?
A) The Co-op will turn up to your farm with a RBP and collect
the juice.
Q) Why build the first Energy Park in Leichardt
A) To eliminate direct competition with CSR.
Q) How do I supply cane to the Energy Park when I
have signed for three years with CSR?
A) IF you are close to 1 of 4 Energy Parks the Co-op would
receive all product, separate the cane billet from the trash
and then forward the cane on to CSR. If you are outside of
the Energy Park operating zone, a small amount of nominated
ground can either be ratooned or placed into a rotation of
giant sweet sorghum (juice for ethanol) and bean crop prior
to returning to cane.
Q) What cut to crush delay applies when supplying
cane billets through the Co-op to CSR?
A) The existing time taken in current operations will remain
virtually unchanged.
Q) What is involved in the separation process?
A) Existing technology known as the Trummel Separation system
would be used.
Q) Will the separation process damage the cane resulting
in lower CCS?
A) No.
Q) What price is paid for the juice?
A) CCS still applies however due to the low
fibre content of the juice; the CCS value will average approximately
4 units higher.
Q) What price will be paid for the fibre?
A) What is negotiated by the Co-op on your behalf.
Q) Who will cut the cane that is being supplied to
the Energy Park?
A) The Co-op would co-ordinate the harvest and transport of
the cane and juice supplied to the Energy Park.
Q) What will be the cost of harvesting the cane for
the Energy Park?
A) As negotiated between the Co-op and the shareholder as
part of the fair market price to collect cane from the farm.
Q) What if I sell my farm?
A) All commitments to supply are terminated and the rules
of the Co-op as to who can be a member and take ownership
of shares will apply.
Q) What if I lease my farm?
A) As in the CANEGROWERS Burdekin Limited supply agreement,
Opt in and Opt out provisions would apply.
Q) What am I getting shares in?
A) If you contribute to the IBP ($10,000) you will gain shares
in that specific technology. IF you contribute the 50 cents
per tonne for 5 years you will receive one $1 share for every
$2 contributed in the co-op which would be underpinned by
land to establish the Energy Park and commercial business
operations. The balance is used for feasibilities to add value
to the land and support the major 5 year mapping programme.
Q) When can I expect a return on the shares?
A) Approximately 3 year’s time, however some services
would be offered immediately at preferential prices.
Q) When will the Energy Park operation begin?
A) Late 2007 for electricity production
Q) Can I use my existing harvester to supply to the
Energy Park?
A) If you are a grower located near the Energy Park you can
use your existing harvester except the fans and topper would
be turned off. The Co-op will provide the transport for the
product from the paddock.
Q) Who is building the Energy Park?
A) A joint Venture primarily between Renewable Energy Australia
(REA) and the Co-op.
Q) What is the expected saving for the shareholders?
A) A target of $6 per tonne in cost reduction is expected
by reducing the harvesting and mill cost associated with current
production methods by 2008.
Q) Why do we need REA and Austfield Technologies?
A) REA has the licence for the furnace technology and Austfield
Technologies is the provider for the juice extraction.
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