A wool processing plant run entirely from renewable energy is being touted as a blueprint for the future of the industry in Australia.
Australia produces about 300 million kilograms of wool each year and more than 90 per cent of the clip is sent to China to be scoured, or cleaned.
Once cleaned, the wool is sent back to Australia for further processing and then sent on to other international markets to be made into fabric or clothing.
The $65-million Blackall Woolscour project would see 14 million kilograms of greasy wool cleaned per year, and return processing to Australia for the first time in at least a decade.
Scouring was conducted domestically before the cost of onshore processing grew too high.
But with the threats of biosecurity incursions, trade bans and tariffs looming over Australia’s agricultural industries, the plan to establish a modernised wool scour in Queensland’s outback is being seen as a potential safeguard for the sector.
Wool producer and Blackall-Tambo Regional Council Mayor Andrew Martin said the facility could lead to the reorganisation of the industry in Australia.
“[It’s] enabling us to take control of our own destiny,” he said.
Reducing sovereign risk
Queensland Wool Processors (QWool) is the company proposing the project, which is tipped to be operational by 2027 if the plan goes ahead.
Chairman John Abbott said if the processing plant was successful, it could pave the way for more to be built across the country.
“By returning wool scouring to Australia, we reduce the sovereign risk that we currently have,” Mr Abbott said.
“The biggest risk the industry faces is if a disease like foot and mouth comes into Australia, or there’s a conflict involving China — the wool industry would shut down overnight.
“That’s the risk we have to ameliorate and this plant is a step along the way in doing that.”
Returning wool processing to Australia removes at least six logistical steps in the current process, according to Mr Abbott.
“We can shorten the supply chain by between 10 to 12 weeks,” he said.
“While our labour costs in Blackall will probably be higher than China, the savings from reducing the supply chain are significant.”
Mr Abbott said there were other reasons to bring back domestic processing.
“The European Union is bringing providence rules, which means we need to know where the wool has come from, its environmental credentials, the ethical treatment of animals and so on,” he said.
“We can’t do that at the moment.”
Green energy to run plant
Blackall’s historical woolscour was fully operational between 1908 and 1978 and was a significant factor in western Queensland’s booming wool industry during that time.
But cheaper international competition meant the scour was eventually closed.
Blackall has direct access to water from the Great Artesian Basin, which comes out of the ground at 65 degrees Celsius — the perfect temperature for wool scouring.
It will not only make the scouring process cheaper, but will also help to power the facility, which has been designed to run entirely off renewable energy.
“We will be using both solar electrical and solar thermal in there, as well as the geothermal energy from the artesian water,” Mr Abbott said.
The desire to build a renewable facility was motivated by the need for power and traceability.
“There isn’t enough capacity in the Ergon network here to supply our needs,” Mr Abbott said.
“And it will help in that provenance certification that we have to do for product that ends up in the European Union.”
The Queensland government has committed $940,000 to fund the final stages of a planning and feasibility study for the project.