It is envisaged that a hub with high tech processing equipment would be installed in Central Gippsland, drawing feedstock from across Gippsland (and potentially elsewhere). Whilst the various technologies are well established, specialist know-how will be required to optimise their capabilities. Some of the technologies include stabilisation, fermentation, extraction, fractionation, concentration and drying to produce ingredients in both liquid and powder form.

CSIRO has developed an early stage cash flow model of the hub and modelled different scenarios for national application across clusters. The following table provides indicative infrastructure and operational costing for a regional hub example. This long-term scenario could also be achieved based on a smaller start-up and scaling up of the project over time.

Estimated Net Present Value example: $93.1 million over a 15‑year life span with a 66% return on investment over a 3‑year payback period.

Regional benefits

Impact of direct expenditure

Expenditure on capital items in the region is estimated at $14.2 million.

Indirect economic effects

Multiplier effects are estimated at about $28 million in the capital expenditure phase and up to $74 million per annum at full capacity (1.5-2.0% of Gross Regional Product).

Employment

Thirty five direct jobs and up to 18 contract jobs.

An additional 50 created from the flow-on effects of income generated.

The project would also increase entrepreneurial activity in the region by stimulating new micro and small enterprises, generating further employment opportunities.