CEFC finance composting facility for Melbourne councils

Organic waste from eight Melbourne councils will be sent to a new composting facility, to be built by international waste management company Sacyr Group.

The Clean Energy Finance Corporation (CEFC) will commit up to $35 million towards the new composting facility.

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The $65 million South Eastern Organics Processing Facility will be the most advanced of its type in Victoria and will produce approximately 50,000 tonnes of high grade compost each year.

The compost will be made from processed household garden and food waste from council kerbside green waste collections in Melbourne’s south-east, which will then be used on local parks and gardens.

Food and green waste makes up an estimated 42 per cent of landfill for Australia’s municipal and commercial waste streams.

The Melbourne councils include Bayside, Cardinia, Casey, Frankston, Glen Eira, Greater Dandenong, Kingston and Monash.

Sacyr expects the fully-enclosed, in-vessel aerobic composting and maturation plant will be operational by mid-2019. It will aim to operate for 15 years, with a potential five-year extension.

The new facility will have an annual processing capacity of 120,000 tonnes of waste each year, the equivalent of 12,000 truckloads of waste. It is expected to abate more than 65,000 tonnes of carbon dioxide equivalent emissions annually. This would cut the greenhouse gas emissions from landfill by 85 per cent if it were to be landfilled, which is equivalent to taking 13,900 cars off the road.

Sacyr Group has built 48 plants around the world and handles more than three million tonnes of waste each year. It currently operates in Australia through its subsidiary, Sacyr Water, which has built and operates the Binningup desalination plant.

The technology used in the plant has been developed over two decades, ensures plant storage reservoirs are completely closed, and uses efficient and reliable deodorisation systems.

Federal Government  Environment Minister Josh Frydenberg said converting waste to compost can play a part in Australia’s long-term waste solutions.

“This facility alone, which will be the most advanced of its type in Victoria, can process around 12,000 truckloads of waste per year,” Mr Frydenberg said.

“It means food and organic waste produced by south east Melbourne residents will not end up in landfill and will instead produce high-grade compost for our gardens and parks.”

CEFC CEO Ian Learmonth said the corporation is looking across the economy to identify finance opportunities to reduce Australia’s emissions.

“We’re pleased to be making our first project investment to help councils and communities tackle emissions from their organic waste,” he said.

“When organic waste such as food and green waste ends up in landfill it breaks down and produces methane. With this technology, councils can avoid those emissions by turning their organic waste into reusable compost, while also reducing our unsustainable reliance on landfill as a waste disposal option.

“We strongly endorse the principle of avoiding and reducing waste at the source. Our finance is about effectively manage the remaining waste, so that it doesn’t end up as landfill and we make a meaningful difference to our greenhouse gas emissions,” Mr Learmonth said.

CEFC Bioenergy Sector lead Henry Anning said the CEFC finance model for the Melbourne project was an industry first, providing councils with access to a project financing structure that has rarely been leveraged across local government.

“Australia’s waste sector is facing enormous challenges, because of the growing amount of waste we produce as well as increasing community concerns about the way we handle that waste. This new Melbourne facility provides us with a practical and proven way to turn organic waste into a reusable commodity at the same time as avoiding harmful emissions,” Mr Anning said.

“We expect to see more councils and communities consider innovative ways to manage all forms of waste. This innovative project finance model offers opportunities for other groups of councils considering investing in substantial waste management infrastructure to reduce landfill waste.”

ResourceCo and Cleanaway open Wetherill Park PEF plant

The largest resource recovery and Processed Engineered Fuel (PEF) plant in Australia has been unveiled at Wetherill Park in Sydney.

Owned in a joint venture between resource recovery company ResourceCo and Cleanaway, the plant is licensed to receive up to 250,000 tonnes a year of dry commercial and industrial, and mixed construction and demolition waste, to recover commodities including metal, clean timber and inert materials, with the balance converted into PEF.

Over its lifetime, the plant is expected to abate more than four million tonnes of carbon emissions.

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Cleanaway’s customer base and waste supply in NSW will help drive volume to the facility to divert waste from landfill.

PEF is used as a substitute for fossil fuels in both domestic and offshore markets in the production of cement.

The plant will supply Boral, Australia’s largest construction material company, with PEF for its Berrima cement kiln as a substitute for coal.

Chief Executive Officer Sustainable Energy at ResourceCo Ben Sawley said the new plant will divert up to 50,000 truckloads of waste from landfill, while also reducing reliance on fossil fuels such as coal and gas.

“It will replace over 100,000 tonnes of coal usage per year alone and will take the equivalent of 20,000 cars annually off the road in terms of greenhouse gas emissions,” Mr Sawley said.

“We’re committed to playing a key role in Australia’s future sustainable energy mix, by reducing waste and lowering carbon emissions through production of a commercially viable sustainable energy product,”

“The opportunity to tap further into this market is huge and it makes good sense, both environmentally and economically,” Mr Sawley said.

Cleanaway Chief Executive Officer Vik Bansal said this is an important new resource recovery solution in New South Wales that creates a landfill diversion option for commercial and industrial, residual recycling, and some construction and demolition waste.

“Investment in resource recovery and innovative waste to energy solutions is essential to making a sustainable future possible, and one of the ways we’re delivering on our Footprint 2025 strategy,” Mr Bansal said.

Cleanaway and ResourceCo’s Wetherill Park facility

The project was supported by a funding from the Clean Energy Finance Corporation (CEFC), which had committed $30 million in debt finance to support development of the plant, as well as an additional plant at a second Australian location still to be identified.

CEFC CEO Ian Learmonth said the priority in managing waste must be to reduce the amount waste produced in the first place.

“With what remains, we need to invest in proven technologies to repurpose it, including as alternative fuels. By turning waste into PEF, this facility is showing how industrial processes can reduce their reliance on fossil fuels,” he said.

“We can also reduce the amount of waste materials going into landfill, an important factor in cutting our national greenhouse gas emissions,” Mr Learnmouth said

CEFC Bioenergy and Energy from Waste Sector lead Henry Anning said the CEFC was working with the waste management sector to increase energy efficiency and energy generation, as well as reduce carbon emissions.

“With Australia’s waste sector facing considerable disruption, now is the time to adopt new ways of doing business,” Mr Anning said.

“With the right investment in proven technologies, companies can turn our urban and industrial waste into new energy sources, creating an important revenue stream while also reducing landfill gas emissions.

“In Australia there is a growing commercial opportunity for resource recovery, reinforced by tightening state government landfill regulations. We are working alongside waste companies to invest in long-term infrastructure that can make a lasting difference to the way we handle our waste,” he said.

Solar farm planned on top of Newcastle landfill

A new solar farm is slated to be built on a capped landfill site in Newcastle to significantly reduce the council’s annual $4 million electricity bill.

The farm adds on to one of Australia’s most advanced renewable energy setups at a waste facility, which already has a 2.2-megawatt landfill gas generator and a small wind turbine.

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With the additional energy available, the farm could lead to electric garbage trucks and improved battery storage.

The size of the new farm will cover an area of around five football fields between Summerhill’s entry road and construction waste area.

Construction is planned to begin in June and it is estimated the farm will save around $9 million after construction and operational costs are factored.

The farm’s 14,500 panels will be built by Lendlease and with most of the finance lent to Newcastle City Council through the Clean Energy Finance Corporation’s (CEFC) Local Government Finance Program.

“I’d like to thank the Clean Energy Finance Corporation for its incredible support of the City of Newcastle’s sustainability charter,” Newcastle Lord Mayor Nuatali Nelmes said.

“The solar farm will produce enough energy to run the equivalent of 1,300 households, which promises significant environmental returns for ratepayers and millions of dollars in savings on electricity costs,” she said.

“We are building sustainability into everything we do after reiterating our commitment last year to generate 30 per cent of our electricity needs from low-carbon sources and cut overall electricity usage by 30 per cent by 2020.”

“Increasing our renewable energy capability and finding more energy-efficient solutions is an integral part of our long-term vision to become a smart, liveable and sustainable city,” Cr Nelmes said.

Newcastle City Council secured a $6.5 million loan from the CEFC to build the $8 million project.