Pelleton Renewables (henceforth, ‘Pelleton’) was engaged as the pelletisation plant OEM and sub-contractor for a feasibility study led by Australian engineering firm All Energy Pty Ltd, in partnership with the Australian Meat Processor Corporation (AMPC) and a large Queensland red meat processor. The study addressed a commercially significant question: can paunch and sludge — currently costing processors over $86 and $130 per tonne respectively to manage via composting — be converted into a renewable fuel for co-firing with coal in an on-site boiler, simultaneously eliminating organic waste costs, offsetting coal with a renewable biomass fuel, and reducing Scope 1, 2 and 3 greenhouse gas emissions?
Pelleton’s contribution spanned both laboratory trial work and engineering design. Our team conducted a structured 10-day programme, pelletising representative samples of the site’s organic waste streams — waste activated sludge, DAF sludge, paunch, and green stream screenings — under realistic operating conditions. The trials confirmed that the feedstock consistently produces well-formed, good-quality pellets, with pine sawdust introduced as a moisture-conditioning co-feed on the wetter production days when moisture in the organic materials was higher, giving operators a practical means of handling feedstock variability without additional infrastructure. Physical pellet batches were created and shipped to HRL Laboratories for independent combustion testing, confirming a lower heating value of 16.6 GJ per tonne, comparable to industrial wood pellets and higher than wood chips, and overall energy-cost lower than coal (on a AUD per GJ lower heating value delivered). Pelleton also provided the full pelletisation plant design scope, covering feed and material handling systems, an extruder system, pelletising drum, and multi-level drying unit, with pellets sized specifically to match the boiler’s fuel specification.
The study found strong economics across a range of operating scenarios.
- Annual cost savings and revenues are estimated at $2.39 to $2.59 million per annum.
- IRR of 17.6-18.1% over a 20-year horizon.
- Payback period of ~5years, reflecting a comprehensive, whole-of-site project scope that extends well beyond the pelletisation plant itself.
- Annual greenhouse gas emissions reductions are projected at 5,044 to 6,261 tCO₂-e per annum.
- Coal offset of approximately 42-52% in the base case, rising to 60% at maximum production.
The study also modelled an organic fertiliser pathway, with the nutritional profile of red meat processor organics comparing well against other commercial products currently wholesaling at over $1700 per tonne.
This is, to our knowledge, the first pelletisation feasibility study of this scope and rigor to be completed at an Australian food manufacturing facility. Every red meat processor in Australia generates paunch and sludge, and most have overheads to manage or dispose of their organics. Many still rely on fossil fuels for process heat. The model proven here, converting those same waste streams into a co-firing fuel or a premium organic fertiliser while eliminating management and haulage costs, is applicable across a range of site configurations, boiler types, and feedstock profiles. There is also the added advantage of making fuel on-site, thereby reducing truck movements and improving energy security.
About Pelleton Renewables: Pelleton Renewables is an engineering driven clean tech company focused on waste to energy, fertilizer innovation and environmental remediation in hard to abate industries. Our innovative technology converts biomass and bio-waste materials into pellets without the need for thermal drying or compression which is a step change in the way waste is treated. To find out whether a pelletisation system could work for your facility, contact us at www.pelletonrenewables.com.
About All Energy Pty Ltd: All Energy Pty Ltd is an Australian owned and operated engineering and project management company, specialising in industrial scale chemical processing, renewable energy, process industries, fertilisers and transport fuels. We have globally recognised expertise in “digital twins” (advanced process modelling) and industrial ecology.
W: https://allenergypl.com.au E: gareth@allenegrypl.com.au
About AMPC: The Australian Meat Processor Corporation (AMPC) provides research, development, and extension services that improve the sustainability and efficiency of the red meat processing industry.
This article is based on the feasibility study “Pelletisation Feasibility Study” (AMPC Project 2021-1212), prepared by All Energy Pty Ltd in partnership with AMPC. Pelleton Renewables Pty Ltd participated as the pelletisation plant OEM and sub-contractor. All values are in AUD.