Oil Mallee must look to multi-product industries

Oil mallees are one of the preferred options to combat dryland salinity in the Western Australian wheatbelt, but their economics are uncertain. We compare three scenarios: on-farm mallee oil production, industrial oil and wood-based electricity production, and a combined oil, electricity and activated carbon system. Only the third option has any serious chances of being a profitable venture, with the second being the worst. The first could break even if oil yields increased from 3 to 4%. Results are sensitive to the price volatility of activated carbon and the operations cost of the cogeneration plant.