Mackay Sugar awards $14m contract to build biofuel plant in QLD

Australia’s second largest sugar milling company Mackay Sugar has awarded G &S Engineering a A$14 million contract to for part of the construction of a co-generation plant in northern Queensland.

G&S Engineering is an asset management service provider for the engineering, construction and maintenance projects. The company services the resources, energy and infrastructure sectors.

G&S Engineering signed the agreement with Mackay Sugar last Friday (29 July 2011). G&S Engineering will commence work on its part of the clean project this month (August).

Construction of the A$120 million Mackay Sugar Racecourse Cogeneration Plant is already underway.
The project is considered to be a positive initiative for Queensland and is expected to stimulate the state’s economy.

G&S Engineering will employ approximately 55 people to work 85,000 hours to complete its part of the biofuel plant construction by mid next year.

Construction of the pant is expected to be completed by end-2012. Once in operation, the plant will reportedly produce a third of the city’s electricity needs from sugar cane waste.

Mackay Sugar has signed a six-year deal with Ergon Energy for the electricity the northern Queensland plant produces.

The company has a reported annual turnover exceeding A$300 million with its revenue base in raw and refined sugar, molasses and electricity.

Mackay Sugar was formed as a co-operative in 1988 through the merger of independent milling co-operatives in the Pioneer Valley (Marian, Racecourse, Cattle Creek, North Eton and Farleigh mills) and the acquisition of Pleystowe Mill from CSR. The co-operative was incorporated as a restricted public company in July 2008.

The company also holds a 25% interest in sugar refining within Australia and New Zealand in a joint venture arrangement with CSR.