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.”

Half a million dollars awarded to Vic regional composting facility

A proposal to develop a regional Victorian composting facility has received $500,000 in funding from the state government.

Organic waste management company Pinegro are developing a $5 million project to use an enclosed tunnel system for the composting of food and organic green waste from local councils in the Morwell region.

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Currently, Pinegro composts using an open windrow method but this process can be affected by weather conditions.

By implementing the new system, the company will be able to compost within a contained, temperature-controlled environment to deliver a better product, faster.

Pinegro’s grant will go toward the construction of a waste receival building, composting tunnels and air and water filtration systems.

It is expected to divert 18,000 tonnes of organic waste from landfill each year.

The funding was part of the second round of the Resource Recovery Infrastructure Fund, which is supporting 13 projects across regional Victoria.

These projects are expected to divert more than 85,000 tonnes of waste a year from landfills.

Victorian Minister for Environment Lily D’Ambrosio said food waste from homes accounts for around 250,000 tonnes a year in Victoria.

“These upgrades to the composting system will increase Pinegro’s capacity to process food waste and absorb more from local councils,” she said.

Applications for the third round of the Resource Recovery Infrastructure Fund are now open. For more information, click here.

SECOS wins $1.5m contract with Penrith City Council

Sustainable bioplastics developer SECOS Group Limited has won a material contract to supply compostable bags to Sydney’s Penrith City Council.

The contract with Penrith City Council in Sydney is the largest active waste diversion program amongst the city councils. The contract is valued at more than $1.5 million over a term of 18 months, and represents approximately 7 per cent of total company sales compared to FY17.

The contract was won through its subsidiary Cardia Bioplastics (Cardia).

The company remains confident of the demand outlook for its eco-friendly compostable waste management products, as local authorities in Australia and abroad increasingly seek to divert organic food waste from landfill.

SECOS Managing Director Stephen Walters said diverting organic waste from the landfill waste stream minimises councils’ rapidly-rising tipping fees and significantly cuts the landfills’ release of methane gas.

“At every opportunity, SECOS is looking to find innovative ways to reduce the ecological impact of the way we live on the planet. After all, SECOS got its name from striving to deliver Sustainable ECOlogical Solutions,” he said.

City of Penrith Mayor John Thain, said the council is intently focused on sustainable waste management and resource recovery services.

SECOS expects to see continued growth in the waste management market both locally and globally as local councils and governments strive to implement organic waste diversion programs aimed at providing significant economic and environmental benefits.