The New South Wales Sugar Milling Co-operative says its two cogeneration plants on the north coast will continue to operate, at least in the short term.
The viability of the facilities at Condong and Broadwater has been questioned in recent weeks and executives from the co-operative held urgent meetings with bankers yesterday.
The co-op’s chief executive, Chris Connors says the market for renewable energy certificates is being flooded by home-based systems, leaving larger generators at risk.
But he says the organisation now has three to four months to turn the situation around.
“The time will also give us an opportunity to see whether the government’s mooted new legislation is going to have the right impact in the marketplace as far as our receipt prices, so that’s important and it’ll also give us time to establish alternative fuel sources to make sure that we’ve got stable security from that point of view,” Mr Connors said.