Professional Documents
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EXECUTIVE SUMMARY
The purpose of the New England Tablelands Community Wind Farm Study (New England Wind Phase1) is to determine the feasibility for the establishment of a community co-operative based wind farm in the New England Tablelands. The emphatic and crystal clear message from the overwhelming majority of community and key stakeholders has been 'go for it'!
One community-owned wind farm will only produce a small proportion of the electricity needed, but it is a start. In due course we should aim to have 100% renewable energy generated within the region, preferably from a number of different sources...
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CONTENTS
Partnerships..................................................................................... 26 Local Government.....................................................................28 Funding Body ~ New England Renewable Energy Precinct, DECCW.........................................................................29 Commercial.................................................................................... 30 Study Tours....................................................................................... 31 Communication Reach..........................................................31 Web Presence............................................................................... 32 Other................................................................................................... 33
Feasibility Assessment...................................................7
Leadership & Expertise................................................................7 Government Context..................................................................8 Indicative Investment..................................................................9 Potential Sites.................................................................................10 Support for Renewable Energy..........................................10 Community Participation.......................................................12 International Year of Co-Operatives.............................13
Design Principles...........................................................14
Navigating the Design Principles Map..........................16
Meaning of Community..........................................17
Involvement from Beyond the Community...............19
Appendices......................................................................43
Turbine Tourism...................................................................................43
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REPORTING STRUCTURE
This Preliminary Report details the high level summary of six months of highly participatory planning and research into the feasibility for a New England community wind farm. It reflects the findings and evidence established throughout the various streams of this work, and is to be read in conjunction with the following series of Reports dedicated to discrete parts of the participatory planning process and research: Governance Models Options Analysis Community Survey Analysis Participatory Planning Forums Analysis Community Renewable Energy Research Report ~ Community Power Agency Legal Structure Advices NSW Co-Operatives ~ NSW Environmental Defender's Office Hybrid Structures ~ Wilson & Co Lawyers Study Methodology & Activities Report
SCOPE
OF
STUDY
The purpose of the New England Wind Study is to examine the feasibility of a community co-operative based wind farm in the New England Tablelands, with the capacity to generate between 4MW and 10 MW. The scope of the study includes identifying: potential for participation by landholders and local residents; opportunities and best vehicle for raising investment and development funds; the most appropriate co-operative structure(s) for the venture; and, recommendations and protocols which can assist the development, membership and marketing of similar community co-operatives in other NSW Renewable Energy Precincts.
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PROCESS
TO
The particular purpose of this Preliminary Report is to outline draft findings and recommendations for further discussion, comment and feedback, which in turn will inform the Final Report (due June 2011). The process to achieve this is as follows: Publish and promote this and the above listed Reports throughout existing networks, websites, email and mainstream media; Facilitated Stakeholder Focus Groups (The Community Mutual Group, The University of New England, and Armidale & District Chamber of Commerce); Brief NSW and Australian Government agencies and utilities to assess the implications of the Study for them; Produce and promote a short video explaining the findings and recommendations; Negotiate with legal and financial advisors to clarify legal advice detail for the proposed hybrid governance structure; and, Obtain indicative information regarding the scope for superannuation investment. The outcomes from this work will be analysed and incorporated into the Final Report, including identifying the immediate steps required for the establishment of the proposed governance structure.
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FEASIBILITY ASSESSMENT
The following section provides an overview of the key findings and evidence from this Preliminary Report supporting the feasibility for the establishment of a New England community wind farm.
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GOVERNMENT CONTEXT
The NSW New England Tablelands Renewable Energy Precinct, and the joint Australian-NSW Governments' 2020 20% Mandatory Renewable Energy Target, are key policy drivers for commercial wind development especially, and New England Wind can be expected to capitalise on the large amount of regional commercial activity scheduled to take place from 2013 onwards. Working in partnership with the Renewable Energy Precinct has been invaluable, and mutually beneficial. New England Wind brings community engagement and education strengths to partner the role of the Precinct and its network.
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Would need to examine the business case before investing. Although I would not be that worried about high returns, I would not like to take a high risk on any investment.
300 individuals have expressed a willingness to invest $3m in total, and the profile of their investment compares favourably with the Hepburn Wind investor base, indicating a stronger average and mean willingness to invest. Willingness to invest was specifically covered at each of the six forums and the vast majority of attendees showed their willingness to consider investing. This interest was consistent with the findings from the Survey.
In addition, indicative figures from local organisations tally to around $2m. The proposed business model will leverage community ($10m+), investor (up to $10m) and borrowings (up to $10m). These capital raising targets are achievable, particularly in light of the $10-12m collectively invested by the community in micro-generation in the last 3 years. The potential to establish an effective vehicle for small and self-managed superannuation funds investing in New England Wind is still under investigation.
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SUPPORT
FOR
RENEWABLE ENERGY
Each of Walcha, Armidale Dumaresq, Uralla Shire and Glen Innes Severn Councils' strategic plans, priorities or goals identify support for renewable energy: wind power, renewable energy generally, climate change and the shift beyond coalfired electricity. The University of New England has similar priorities, the significance of which is underlined by the size of the organisation ~ the single largest employer between Newcastle and the Gold Coast. The substantial take-up of micro-generation solar Pv and wind has already been noted. In addition it is important to highlight that this has occurred across urban, business and rural sectors, families, farmers and retirees.
We have set up a 10Kw Small-scale Solar Power Generator on our property. We would like to add to our contribution to renewable energy by investing in a wind farm.
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Illustration 5: "What sources of electricity would you prefer to be creating electricity for the New England?" ~ Community Survey
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COMMUNITY PARTICIPATION
The findings for the feasibility of a community wind farm are grounded in a significant scale of community participation and engagement. Feedback and comment on this Report, including Focus Groups, will be incorporated into the Final Report, Recommendations & Findings. As highlighted in the figures (right) more than 1,300 individuals have directly been involved in this Study.
'Community' here means the 'whole of community' ~ local businesses, individuals, Council, government agencies, investors and more.
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CO-OPERATIVES
The recommended use of a Co-operative structure for New England Wind in part reflects the strong international history and reputation of co-operatives advancing the community governance and benefits. The United Nations General Assembly has declared 2012 as the International Year of Co-operatives, highlighting the contribution of cooperatives to socioeconomic development, in particular recognising their impact on poverty reduction, employment generation and social integration. This timing provides a potentially significant platform for profile, partnerships and support for New England Wind, and the pursuit of co-operative owned renewable energy more widely. Community and co-operative owned energy is responsible for 86% of all wind power in Denmark and a remarkable 90,000 employees in Germany delivering 8% of their total energy. The co-operative sector worldwide has nearly a billion members, with membership as high as 1 in 2 people in Finland and Singapore, and one in three in Canada, New Zealand, Honduras and Norway. In New Zealand, co-operatives account for 22% of GDP. Financial co-operatives serve an estimated 857 million people, or 13 percent of the world population. Some 49,000 credit unions serve 177 million members in 96 countries, under the umbrella of the World Council of Credit Unions. It is estimated that co-operatives account for more than 100 million jobs around the world.
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DESIGN PRINCIPLES
The most significant area of inquiry, and findings, has been to identify a framework of Design Principles for an acceptable, supported and successful community wind farm. The Design Principles shape the preliminary findings and recommendations New England Wind. They address the full spectrum of requirements for governance, financial and legal affairs, capital raising and operational requirements with a view to pursuing the desired benefits of a community wind farm, as well as addressing challenges and minimising risks. While New England is an identified priority area for renewable energy, particularly due to its solid wind resources, the success of a community wind farm relies upon establishing a broad base of support. The forms of support required range from financial investment through to suitable land for locating turbines, considering landholders, neighbours, aesthetic and ecological issues as well as the operational necessities for good wind, grid connection and service accessibility. The Study has identified an overwhelming level of support for this proposition, with a comprehensive range of requirements now mapped (see following page) for the design specifications of the initiative. At the same time there have been some negative experiences from current wind farm proposals in the region. These were particularly prominent around Glen Innes. These concerns have been fed into the risks and challenges, detailed later in this Report, as well as a more robust and comprehensive set of design principles to ensure broad-based community support and acceptance.
Well some of us have other ideas about benefits and advantages. I think its a shame here tonight. I think its tainted with the commercial [wind farms] but some of us actually are interested in our particular areas for a community wind farm so I guess Id like to state that point of view at this stage in the game.
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The Design Principles have been grouped and summarised in clusters as follows: Governance & Ownership ~ defining the requirements and rules for the 'community governance' of the wind farm, including the universal CoOperative Principles inherited from the global movement, and ensuring majority ownership by the 'community' throughout the operation;
People feel powerless (excuse me) with the current situation. Give us all a chance to have a say about the what, where and costs of providing energy to our homes, farms, and businesses.
Electricity Generation & Turbine Siting ~ recognising the underlying need to shift to renewable energy and move beyond coal, how the electricity generated should be utilised, specifications for selection of turbine technology and suitable sites, and identifying the central benefits sought by the community;
Using and producing energy in our region would be greatly beneficial to our community and the closer it is the better, especially if produced via renewable/sustainable means.
Building Knowledge & Understanding ~ ensuring there is a proactive, transparent and comprehensive campaign to inform the community and their decision-making with regards to the specific community wind farm and the broader purpose of addressing energy needs in total; and,
A campaign to educate people about how wind power actually generates power, and how it is converted for use in the average home or business, and how much it costs per Kw to set up and distribute. Similar to the campaign which educated us about solar power.
Community Benefits ~ demonstrating leadership, doing it our way and ensuring that the sound financial and technical operation of the wind farm delivers benefits to the wider community (Community Benefit Plan to be developed) beyond the direct shareholders and stakeholders.
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MEANING
OF
COMMUNITY
The meaning given to 'community' is a critical component of New England Wind, by defining the boundaries and balance of ownership, governance principles and benefits which will accrue beyond the direct parties to the wind farm such as shareholders, employees, suppliers, landholders and electricity users. Research was undertaken to examine existing literature on the definitions of community generally, and specifically as applied to community renewable energy initiatives. The findings of this research are separately detailed in the Community Renewable Energy Research Report (Community Power Agency). The message from the Survey, Forums and other engagement was very clear with regards to defining 'community': those having a clear local residence, stake or ownership in the New England. For the purpose of New England Wind Community is defined as: Local ~ the social, cultural and geographic identity of the New England Region, NSW, Australia; Including Individuals ~ those who live or own land in the New England; Including Organisations ~ businesses owned by local people and other similar local organisations, such as superannuation funds, family trusts or community organisations with local governance. It is recommended that a 'selfidentifying' process, similar to that used by Hepburn Wind, is applied for the purpose of governing the New England Wind member and investment registry. That is, individuals and organisations should be able to 'self-identify' as being 'local', and so part of the 'community' as defined above.
Illustration 8: Community Outreach ~ Gaslands Screening, Belgrave Cinema
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BEYOND
THE
COMMUNITY
The recommended governance structure firmly embodies the principle of community ownership, decision-making and returns from the community wind farm. At the same time there is recognition that New England Wind will benefit from, and be attractive to, investors and other stakeholders who are outside the community as defined above. The governance structure (detailed below) distinguishes involvement of local individuals and organisations with investors and other interests from beyond the community. This is consistent with the Ownership Design Principles ~ specifically with anti-takeover provisions in the operational arm (unlisted public company) and the identified need for a separate share class for Institutional Investors.
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~ to provide affordable, competitive, accessible, clean & renewable energy for New England to become self-sustaining for its energy: addressing usage, efficiency, embedded generation and distribution through to security, storage, sustainability and education ~
A Community Benefit Plan will be developed for the delivery of returns to the wider community from the wind farm operation (that is, returns beyond those to direct members, shareholders, employees, contractors, landholders and other direct stakeholders in the wind farm).
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That starts to allow the Councils influence. Im not saying whether thats good or bad, Im just throwing it on the table.
Some viewed energy as not being a 'core function' for local Council, whereas others felt it could or should be. We propose that the inclusion of each local Council could contribute to the perception of an appropriate governance role. Consideration will be given to the establishment of an Advisory Council for New England Energy as a vehicle for representation from Local Councils and other similar stakeholders. This will be further refined for incorporation into the Final Report.
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POTENTIAL
FOR
PARTICIPATION
An objective of the New England Wind Study was to determine whether there is sufficient support ~ community, investor, landholder, professional, commercial, etc. ~ for the successful establishment of a community wind farm. The overwhelming response, from more than 1,300 people, was positive.
INVESTMENT
As at 4 April 2011, and marking the first 500 respondents to the Online Survey, more than $3m of prospective investment has been indicated in response to the question: How much would you be willing to consider investing? 92% of survey respondents state they would be 'very willing' (36%) or 'would consider' (56%) investing. While only indicative, most of the survey respondents included their contact details adding weight to the integrity of their responses.
# 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Answer
Response $100 19 $250 14 $500 32 $1,000 50 $2,000 42 $5,000 64 $10,000 33 $20,000 14 $50,000 8 $100,000 5 $250,000 0 $500,000 0 $1,000,000+ 1 Enough to cover my own electricity use 14 Not Sure 30 Total 326
% Total 6% $1,900 4% $3,500 10% $16,000 15% $50,000 13% $84,000 20% $320,000 10% $330,000 4% $280,000 2% $400,000 2% $500,000 0% $0 0% $0 0% $1,000,000 4% $70,000 9% 100% $3,055,400
Illustration 13: Community Survey ~ How much would you be willing to consider investing?
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The reasons and motivations for investors (above) echo the pragmatic views reflected in the Design Principles ~ that is, potential participants are seeking to balance financial returns, essential to the viability and sustainability of the wind farm operation, with their considerations for energy generation and security, climate change and clean energy, economic development, community leadership and public health and safety. These motivations reflect a balancing of returns to investors, direct parties such as employees and energy customers, and the wider community.
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LANDHOLDERS
Illustration 15: Landholder Forums Hosted with Landcare ~ Kyabra & Walcha
As mentioned earlier, more than 110 landholders expressed interest in hosting turbines. Phase2 work will include assessment of these sites for wind viability and fit with the community-built Design Principles detailed earlier.
PARTNERSHIPS
The range of Partners involved with the New England Wind Consortium is a key strength of the Starfish approach. Each partner has made a significant contribution to date, with highlights including: The Community Mutual Group (TCMG) co-funder this Study, hosted a dedicated forum for investors and have participated in nearly every public event. A dedicated Focus Group will be held with CMG staff and stakeholders to provide feedback and comment on this Preliminary Findings and Recommendations Report. Environmental Defenders' Office (NSW) provided legal advice on NSW CoOperative structures, the transferability of Hepburn Wind's Victorian Cooperative structure, and their application to a community wind farm operation. Wilson & Co have contributed direct professional expertise relating to
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Illustration 16: Survey Working Group (Left to Right): Adam Blakester, Ray South, Assoc. Professor Don Hine, Patsy Asch, Bar Finch, Liz Gardiner, Glenda Kupczyk-Romanczuk, Methuen Morgan, Mahalath Halperin
The University of New England (UNE) have contributed expertise and software for the Online Survey as well as promotion throughout their
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LOCAL GOVERNMENT
Four local Councils have supported the New England Wind Study: Armidale Dumaresq Council's Domestic Energy Committee passed a motion of support which will now move to be considered by the full Council. They also provided use of the Armidale Town Hall for the SLA hosted community forum and Deputy Mayor Jim Maher officially opened the forum. Uralla Shire Council provided use of the Uralla Community Centre and
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Illustration 18: Deputy Mayor, Councillor Jim Maher, Armidale Dumaresq Council, Town Hall Community Forum
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This has strengthened the Study's credibility in engagement with key stakeholders, local Councils, landholders and investors.
Illustration 19: Joint A-Frame for Public Displays (Front & Back)
COMMERCIAL
Two commercial sites have been identified as possibilities for on-site generation which could have significant financial advantages due to netting out their electricity costs at a retail cost rate (as distinct to the normal situation of selling generated electricity at a much lower wholesale rate). Two possible partnerships are being investigated with commercial developers with a view to incorporating a distinct community component or stage to their wind farm. Dozens of commercial consultancies, developers and wind turbine distributors/manufacturers have made contact offering to work with New
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STUDY TOURS
Around 250 people have expressed interest in visiting a modern, working wind farm. Similar tours have been identified by Hepburn Wind as key to their success, providing community members the opportunity to gain first hand experience, particularly with regards to issues of visual and acoustic impacts. Visiting working wind farms is key for New England Wind as residents have had a lesser degree of directly experiencing a modern wind farm compared with other NSW Regions which are closer to operational wind farms (Community Attitudes to Wind Farms in NSW, Department of Environment, Climate Change and Water NSW, 2010).
COMMUNICATION REACH
The communication reach figures detailed (right) reflect the number of direct contacts through the communication network established.
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Raising financial capital in timely manner, Selling the Electricity, Volatility of renewable energy market, Competition (Small Player in a Big Field) for sites, power sale, finance, etc., Tough Global Economic conditions, Decommissioning costs more than Equity & Scrap Value Accessing necessary Professional and Technical Expertise
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Turbine Siting Issues ~ Noise, Heritage, Property Values, Habitat & Wildlife, Grid Capacity, etc
Political Uncertainty, Unpredictability & Interference (eg. County Councils take-over, Electricity Company Sell-Off) Market Forces take-over, unhealthy profit dominance, investor dominance
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Organised Wind Opposition, Being locally based & community led we are more exposed to strident opponents, Potential for work-to-date to have been biased by being mostly those who are supportive
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Illustration 23: Wind Farm Development Timeline ~ Kyoto Energy Park, Parmada
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FINAL REPORT
As noted at the beginning of this Report, the immediate priority is to seek comment and feedback on these Preliminary Findings and Recommendations for refinement into the Final Report (due June 2011). To support this several partners ~ The University of New England, The Community Mutual Group and Armidale & District Chamber of Commerce ~ have each agreed to host focus group discussions of the Preliminary Findings and provide further input into the Final Report & Recommendations. A range of communications will be undertaken ~ media, email, website, newsletters ~ to promote the preliminary findings throughout the region and across the community networks.
OUTSTANDING TASKS
As noted within this report there are several specific tasks requiring completion: Prepare a discrete set of recommendations and protocols to assist with the development, membership, marketing of similar community co-operatives in other NSW renewable energy precincts; Summary of Relevant Government Legislation, Regulation, Policy & Programs to be added based upon draft Community Wind Guidelines developed by Jonathan Carle, NSW Department of Planning; Determination of the Minimum Investment (amount and structure, such as savings plans with Community Mutual Group) and Membership Fee for the Co-operative; Consideration will be given to the establishment of an Advisory Council for New England Energy as a vehicle for representation from Local Councils and other similar stakeholders; Clarification of Share Classes (Co-operative Member and Investor Classes; Institutional Investor Class for the Unlisted Public Company; Integrate findings from analysis of New England respondents to DECCW Community Attitudes Research; and, Identify Policy Findings & Recommendations from Community Renewable Energy Case Studies Research (Community Power Agency).
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Areas of the Glen Innes Severn Council have been identified as suitable for the generation of wind energy. Council determined it necessary to have Development Control measures to ensure Council has policy to control or guide proposed wind farm developments, to allow better guide decision making on such proposals for the community and developers. Council supports the notion of alternate energy sources such as wind energy generation. Wind farms have been identified in the Glen Innes Severn Council Economic Development Strategy 2008 2010 as potential developments for the area. Where visible from a non related dwelling or immediate surrounds a wind farm development shall not be located within 15 times the blade tip height or 2kms (which ever is the greater) of any dwelling not associated with the development or 15 times the blade tip height or 2kms (which ever is the greater) from a reasonable, practical and suitable dwelling site on any lot that has been created for the purpose of a dwelling. Where turbines are proposed to be significantly higher than such properties or dwellings, or where the turbines will dominate the immediate view from the dwelling or dwelling lot, increasing these separation distances is recommended.
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APPENDICES
TURBINE TOURISM
Sydney Morning Herald, 23 January 2008, Natalie Muller Wind farms are providing more than power - they are also bringing in the tourist dollar... The novelty of the white windmill forests is something that is attracting curious visitors in droves. At a time when climate change and renewable energy are concerns, it is not hard to understand why there is an interest. Most wind farms in Australia cater for tourists, providing viewing platforms and information booths. A wind farm in Albany... has a network of paths around the base of the turbines, with boards with stories and facts. Jon Berry, the manager of economic development at Albany Council, said the turbines had enhanced the value of the area. "The combination of the wind farm and a spectacular coastal setting has made it the most popular tourist destination in Albany," he said. Tim Brady of Codrington farm, which has been in Brady's wife's family since 1856 is near Port Fairy, Victoria. In 2001 it gained 14 wind turbines and became Australia's largest (at the time), and Victoria's first, wind farm. An open day for the public in 2001 showed just how much interest there was. "Thousands of people showed up. We were bowled over by the amount of people who came out to the country to have a look," Brady said. Codrington still functions as a farm, and cattle and sheep roam between the turbines (which take up only 1 per cent of the land). Brady runs tours in and around the turbines. Helen Schuuring runs wind-farm tours at Tasmania's Woolnorth farm. She has been giving tours of the property since 1980. After the 37 wind turbines were added, she said, the number of visitors increased by about a third.
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A Register of Contributions is being prepared to compile a more comprehensive record of individual and organisational contributions towards New England Wind.
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The New England Wind Consortium was established by Starfish, bringing together funding, research and community partners to perform the key governance function for this Study. The Study has been funded utilising NSW Department of Fair Trading's Cooperative Research fund at its core. This is a matching funding structure with other funding partners being: NSW Department of Environment Climate Change & Water; The Community Mutual Group; Sustainable Living Armidale; and, Farming the Sun and Starfish Enterprises. To better reach the breadth of expertise and stakeholder interests Community and Research Partners were engaged, including: Embark; The University of New England; Armidale & District Chamber of Commerce; Environmental Defenders Office; and, Wilson & Co. Lawyers. Regional Development Australia Northern Inland were part of the original Consortium however chose to withdraw involvement during the early stages of work.
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