The Oil Mallee Company (OMC) was formed in 1997 at the instigation of the Oil Mallee Association (OMA) to form the commercial arm of the oil mallee industry. The company's role is to profitably manage the growth and development of the oil mallee industry. A principle requirement is to negotiate with potential investors and private companies to form strategic alliances and to encourage investment in the industry.
The OMC has also been responsible for the development and commercialisation of a prototype harvester capable of cutting mallees at ground level and then chipping them, to produce a flowable material for easier handling. The company has also been developing distillation technology (extracting eucalyptus oil from mallee leaves) and the marketing of eucalyptus oil and other mallee products.
OMC secured 1000 hectares of land in the Kalannie - Wongan Hills region on behalf of the Japanese power company KANSAI for the establishment of mallee eucalypts to offset greenhouse gas emissions, which is an exciting new direction for the industry. This is only one of a number of plantings undertaken of behalf of corporate clients. The mallee plantings are integrated into the cropping and pasture management practices of the farmers and have been planted in “alleys” to assist in the management of salinity problems associated with dryland farming. In these instances where aim is to sequester carbon, the trees are destined to stay protected and managed for many years.
Based on the success of this project, OMC reached an agreement with CO2 Australia to provide that company with an exclusive right to use the knowledge acquired by OMC in the process of achieving successful mallee estates dedicated to offsetting greenhouse emissions. CO2 Australia has proceeded to invest in the acquisition of more knowledge of mallee species and their suitability for carbon sequestration. They have embarked on an extensive program of plantings for large energy providers in NSW who are liable parties under the NGACS scheme in that State and required to reduce or offset their greenhouse emissions, measured in terms of carbon dioxide. Further information on their activities is available at www.co2Australia.com.au . Through this agreement CO2 Australia is now also a major shareholder and has one Director on the Board.
The formation of the OMC was a crucial step in achieving this innovative and successful partnership, as thestructure enables the company to establish relationships based on commercial objectives and enables a value to be placed on its knowledge and expertise through provision of a range of services and advice. OMC is confident that further commercial opportunities exist in the processing of mallee biomass.
The growers who started and have built the industry to what it is today, are represented through four Directors on the Board of Directors, and the OMA holds a significant equity in the OMC.
As well as developing the prototype harvester, purchasing proprietary distillation techniques, the OMC has undertaken to assist in the research into the marketing of mallee products such as activated carbon, charcoal, high cineole eucalyptus oil and other possible products such as ethanol. OMC is confident that commercial export and import replacing markets can be found for these products.
In 2000, a feasibility study commissioned by the OMC in conjunction with Western Power and Enecon, identified that all of the mallee biomass (wood and leaf) could be utilised in a processing plant to deliver activated carbon, eucalyptus oil and energy. Further the study found the process was likely to be financially viable.
An Integrated Wood Processing (IWP) plant, or as referred to in the industry, an "Integrated Mallee Processing" plant, was completed in Narrogin in 2006. The pilot plant was tested throughout the first part of 2006 and the results of testing the various capacities were considered very successful. The results of the trial processes will be published in an information memorandum to be produced by Verve, the new electricity generating authority formed following the separation of generation, distribution, client services and regional services off the main grid.
The Minister for Energy issued a statement on 19th June 2006 commenting on the success of the pilot plant. http://www.mediastatements.wa.gov.au
/media/media.nsf
The members of the OMC Board of Directors are:
Professor Syd Shea - Chairman
Assoc Professor Robin Tunnicliffe – Company Secretary
Mr Simon Dawkins Managing Director
Mr Chris Croot
Mrs Elva Rolinson
Mr Keith Parnell
Mr Ian Stanley
Mr James McAuliffe.