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Stellar Energy Defends Plasma Gasification Waste to Energy Plan for Bahamas

Steve Gill, Board Advisor the firm planning a plasma gasification waste to energy plant for the Bahamas, Stellar Energy, has responnded to recent criticism of the plans by the Waste Resources Development Group (WRDG).

Stellar Energy remains committed to the provision of a world class waste management, remediation and clean energy production facility for the Bahamas. Stellar has worked tirelessly for over 6 years at its cost in advancing the project.

It is with disappointment that we are seen as an easy target by some local entities with a vested interest in the current practice, which has resulted in an unmanaged toxic waste dump that continues to have a significant, negative effect on this beautiful island; notably hazardous leachate that breaches the water table and noxious fires, both underground and open air.

The need to ameliorate this situation is plain to see, with the added benefit of a continuous supply of clean, renewable energy at less than half the current cost to Bahamian inhabitants. WRDG (which consists of consortia of small waste handlers and processors) is quick to point out their concerns over one of the proposed technologies-Gasplasma®.

When processing over 1000tpd of highly organic waste the only proven technology with long run time history is mass burn incineration, one can only imagine the furore that would have occurred if this solution had been proposed by Stellar for this project, as well as public outcry. Stellar looked for a new technology with significant risk mitigation, via the combination of two proven (at scale) technologies; gasification and DC Plasma Arc.

Our chosen technology provider, Advanced Plasma Power’s CEO Rolf Stein, supports rebuttal of these allegations made by the projects detractors. He said ‘The Gasplasma technology is based on two long proven technologies (fluidised bed gasification and plasma furnace) deployed in multiple locations around the world.

The Gasplasma technology brings benefits of efficiency and environmental improvement in the generation of power, the reduction in hazardous waste and lower water consumption compared to other waste to energy solutions. Confidence in the technology has been demonstrated by the recent investment by National Grid (UK) in a Gasplasma based project in the UK which is under construction.

Our work with Stellar and the EPC partner to date indicates that the proposed solution will not only deliver renewable power but provide a controlled and substantially more environmentally improved situation than the status quo’

To further mitigate any residual risk Stellar had ensured the whole project was underwritten with a comprehensive process guarantee by one of the world’s eminent and most experienced EPC contractors.

WRDG voice concerns about the proposed cost; again we feel the need to bring balance here. The $650mio figure was a first estimate that was subject to review following 3 separate FEL studies; waste characterisation, landfill study and resultant plant configuration.

Stellar undertook the first of these studies at its own cost, the results of which already bought the indicative capex down some $200 mio to $450mio. Stellar remains very confident that the last two studies would bring the cost down even further to meet its aim of sub $350mio. The irony here is that all costs of this project were to be borne by Stellar, not the Bahamas government or any allied body, public or private.

Again unfounded allegation of significant tipping fee increases are without foundation as Stellar’s business model is based on current pricing. The project bankability is underpinned by a PPA, like all energy projects of this kind in order to make the project fundable. The proposed PPA would have seen prices for clean, continual power brought down by more than 50%, so where we ask is the downside?

As a further commitment to the island and the legacy this project would bring is that Stellar had committed at its cost, to provide a “Centre of Excellence” whereby local labour would have been trained to world class standards and independently certified with NEBOSH/IOSH qualifications to allow maximum local labour content in the construction and operational phases.

To date we have seen no such offering in any shape of form from any of these detractors, in particular WRDG or their intent to work together for the common good.

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