QENOS TO INSTALL NEW COGENERATION PLANT

10 March 2011, ALTONA

Together with AGL, Qenos is delighted to announce that it will invest in improving the energy efficiency of its production facilities at Altona in Melbourne, the CEO of Qenos Jonathan Clancy said today.

“The replacement of one of our steam boilers with a 21MW Cogeneration (combined heat and power) plant will result in a significant improvement of our energy efficiencies. The project will result in a reduction of approximately 100,000 tonnes of greenhouse gas emissions per year.”

Qenos is the cornerstone of the Australian plastics industry and the nation’s sole manufacturer and leading supplier of world class polyethylene and polymers.

An existing steam boiler on the Olefins site at Altona will be decommissioned and replaced with a modern cogeneration unit. The cogeneration unit will meet all of Qenos’s electricity demand and will be capable of producing over a third of its steam requirements, while reducing greenhouse gas emissions associated with Qenos’s operations.

At the heart of the cogeneration unit will be a "state of the art" gas turbine, which will be the first of its kind in Australia.

Mr Clancy said "The project is a further demonstration of the power of cooperation between industry, government, employees and the community to provide a secure long term energy source and improve the economics associated with the production of polyethylene, whilst providing a significant benefit for our environment. This is an investment in real sustainability.”

“I recently announced our ethane expansion project at Qenos Altona. This project has provided confidence in the long term viability of our Altona operations, enabling further investments in projects like cogeneration" said Mr Clancy.

The cogeneration unit is expected to begin operations in late 2012.

AGL is an integrated energy company with a strong suite of energy efficiency projects across Australia.

This major investment reinforces Qenos’s commitment to the Australian polyethylene market and further strengthens its position as a competitive and sustainable long-term local producer of polyethylene resin.

Ongoing investment into Qenos facilities across the country will be vital for the company to maintain its leadership position as the largest production centre for plastics and petrochemicals in Australia.

AGL Cogeneration Media Release