Mossman Mill and its associated companies could soon either be shut down by creditors – or, under a bold new proposal outlined today, including making renewable diesel fuel – the state government could agree to become its main supporter.

At a crucial, ‘confidential’ meeting held in Cairns this morning chaired by Douglas Mayor Michael Kerr, stakeholders heard details of the plan – which in the short term involves bioenergy company Helmont helping fund millions of dollars to enable this year’s sugar cane harvest and crushing to go ahead.

But Newsport understands key conditions set out by Helmont Energy in offering that so-called ‘gap’ funding – is that the state government also provides funding, and becomes a long-term buyer of the bio-precinct’s future products, including renewable diesel, or ‘r-diesel’, and sustainable aviation fuel (SAF).

February 15 deadline

If the proposal is agreed to, in the short term the Mossman sugar season will go ahead, meaning ‘business as usual’ for at least another year.
If the proposal does not gain government support by the February 15 deadline – there is a strong likelihood that creditors would demand liquidation of the company and its assets, effectively closing the Mill and the bio-precinct down for good.

“Helmont and the Growers could fund the gap for 2024, if government commits to purchase the Project renewable energy products under a long-term agreement,” the proposal document presented today to an Advance Cairns meeting said.

Helmont Energy and biotechnology firm Licella presented the proposal to the meeting via video link.

Attendees included Far Northern Milling executives, growers, the Department of Agriculture and other state government representatives, administrator John Goggin of Worrells, Douglas Shire Council and Federal MP Warren Entsch.

Less sugar, more renewable fuels

In the introduction to the save the Mill proposal, the meeting heard that the 2023 sugarcane season had been “extremely tough for the whole of Queensland - it was a short season, with particularly challenging weather conditions, and as a result volumes and sugar contents are down dramatically.”

It went on to say that “FNM has found itself in the position where it no longer has enough funding to support the 2024 harvesting season and has been forced to enter voluntary administration.

“Notwithstanding these setbacks, Helmont Energy, Licella Holdings and FNM have established the Daintree Bio-Precinct Project which has the ability to guarantee long-term employment and create significant value from sugarcane by converting it into energy and renewable fuels, including diesel and sustainable aviation fuel (SAF).

“This project will take several years to complete.”

Newsport is expected to learn more details about the proposal and initial responses to it from the state government, and we will bring you further information when it comes to hand.