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.

Cleanaway to enter into JV with ResourceCo

Cleanaway has entered into a binding joint venture agreement with ResourceCo to acquire a 50 per cent interest in ResourceCo’s Wetherill Park facility.

ResourceCo’s new Wetherill Park facility has the capability to divert 250,000 tonnes of waste per annum, reducing emissions and saving costs for businesses in the long-term – more information on that here. 

Located in western Sydney, the facility receives dry commercial and industrial waste. After extracting any commodities suitable for recycling, the balance of non-recyclable waste is converted into Process Engineered Fuel (PEF) that will be used as a substitute for fossil fuels in domestic and offshore cement kilns.

According to an ASX statement, the investment provides Cleanaway with a further waste disposal solution in NSW and forms an integral part of its Footprint 2025 strategy.

Waste processed by the facility includes residuals sourced from the Cleanaway Sydney transfer station, currently under construction, and other recycling facilities, in addition to commercial and industrial customers with source-separated collection systems.

The purchase price for the 50 per cent interest comprises a $25 million payment at completion plus an earn out of up to a further $25 million payable in two instalments over two years once the facility generates agreed earnings before interest, taxes, depreciation and amortisation targets.

The joint venture, to be branded “Cleanaway ResourceCo RRF” is part financed by a $10 million loan facility from the Clean Energy Finance Corporation, with additional funding from the New South Wales Environmental Trust.

The transaction is expected to be complete during the first quarter of financial year 2019, subject to satisfaction of customary conditions precedent and commissioning and performance standards.

Cleanaway Chief Executive Officer and Managing Director Vik Bansal said the investment plays a key role in the development of the company’s post collections footprint in NSW and its overall Footprint 2025 strategy, which encompasses the development of prized waste infrastructure assets across Australia.

“This facility is the only one of its kind on the East Cost of Australia and enables us to increase waste internalisation rates, and importantly, to offer an advanced resource recovery solution to our customers,” Mr Bansal said.

ACOR call for $150M into regional recycling

The Australian Council of Recycling (ACOR) is urging the federal government to grow regional Australia’s recycling industry with a one-off investment of $150 million.

The investment would go towards better sorting, increased reprocessing, community education and government procurement of recycled content product.

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ACOR Chief Executive Officer Peter Shmigel said recycling has a good base in regional Australia, which can be grown for more jobs and economic value in country areas.

“It’s one of the readily accessible ways to diversify regional economies and make them more resilient against droughts and global market forces,” he said.

“Our industry already has a good place in the bush including lube oil recycling, battery recycling, tyre recycling, industrial plastics recycling and consumer packaging recycling in country areas.”

Mr Shmigel said an independent report from MRA Consulting showed investment in local recycling could lead to the creation of 500 jobs and reduce greenhouse gas emissions.

“We can use waste plastics and glass that can’t go back into bottles as part of asphalt in government-funded road projects,” Mr Shmigel said.

“Roads are the biggest asset in country areas and they can be recycled content rather than virgin materials at competitive cost and quality – if governments positively procure for that,” he said.

Mr Shmigel said using recycled content materials in the Snowy 2.0 scheme alone would massively contribute to more jobs and deliver on the community’s recycling expectations.

ACOR members with operations in regional areas include Southern Oil Refinery, Kurrajong Recycling, Re-Group, Visy, Envirostream, Tomra, SIMS Metal Management, ResourceCo, O-I and Downer Group.

ResourceCo receives loan for alternative fuel plant

The Clean Energy Finance Corporation (CEFC) is lending $30 million to leading resource recovery company ResourceCo to deliver an innovative alternative fuel plant in NSW.

The money will be used to build two new plants that will transform selected non-recyclable waste streams into solid fuel, known as Processed Engineered Fuel (PEF). The first plant is to be built at Wetherill Park in Sydney and the second to be in another Australian state yet to be announced.

PEF is used in cement kilns, reducing the reliance on coal and other fossil fuels. This fuel will initially be used locally, but will also be exported as an alternative to coal and gas for cement kilns in Asia.

Henry Anning, CEFC Bioenergy and Energy from Waste Sector lead, said PEF demonstrated the incredible potential to transform waste, that would otherwise go into landfill, into a baseload energy source as part of Australia’s future clean energy mix, while also lowering emissions.

“Our research into the bioenergy sector has identified investment opportunities of between $2.2 billion and $3.3 billion to 2020 in the urban waste industry. Commercial viability has been driven by a combination of rising landfill gate fees and falling technology costs,” Mr Anning said.

“Waste levies in states such as NSW, the ACT, South Australia, Western Australia and Victoria, are improving the business case for this kind of alternative use of the waste, rather than it going into landfill.”

The CEFC finance will enable ResourceCo to accelerate the development of the Wetherill Park plant, and proceed with a similar facility in another Australian state in due course.

Simon Brown, ResourceCo Managing Director said: “Our business operates across both Australia and South East Asia, which places us in a prime position to drive this new initiative forward and make a real difference in the way in which these communities view and deal with waste.”

When operational, the Wetherill Park plant will process around 150,000 tonnes of waste a year to produce PEF and recover other commodities such as metal, clean timber, and inert materials.

As an indication of the plant’s environmental credentials, it has been successful in securing $5 million in grant funding from the NSW Environmental Trust under the Waste Less, Recycle More initiative. The technology is also eligible for Australian Carbon Credit Units (ACCUs) due to the diversion of waste from landfill.

Mr Anning said generating heat and electricity from bioenergy and waste resources is cost competitive with other new-built energy generation. However, the technologies are not yet widely deployed in Australia.

“Being a throw-away society is a luxury Australia must reconsider. As a nation, we’re producing about 23 million tonnes of landfill each year, causing a growing problem with potential air, water and land quality impacts and generating ongoing monitoring and remediation liabilities,” he said.

“This investment is expected to abate over 8 million tonnes of CO2e over the expected lifetime of the equipment,” Mr Anning added.

The CEFC’s finance for ResourceCo is another example of the CEFC’s focus on delivering clean energy solutions in Australian cities, as part of its Sustainable Cities Investment Program.

 

National waste and recycling body to advocate for industry

Several of Australia's largest waste firms have joined for NWRIC

A new body working to create a cohesive national vision for Australia’s waste management industry, the National Waste and Recycling Industry Council (NWRIC) has officially formed, following the first meeting of its executive in Sydney on February 13.

NWRIC has received support from Australia’s largest waste management companies – and has begun operations.

The Council will be empowered to begin its work thanks to the support of its national members – Alex Fraser Group, Cleanaway, J. J. Richards and Sons, Solo Resource Recovery, Suez, Toxfree, Remondis, ResourceCo and Veolia.

“The waste and recycling industry needs a national voice to advocate for a fair, sustainable and prosperous industry for all stakeholders,” said Phil Richards, Chairman of the NWRIC’s host association Board.

“Australia’s waste management industry is an essential service, and through the NWRIC, we will be asking the Commonwealth along with State Governments to support our initiatives to take the industry forward.”

The NWRIC will serve waste management enterprises by creating industry led policy. The Council will be led by newly appointed CEO Max Spedding, and supported by Secretariat manager Alex Serpo.

The NWRIC will work in close partnership with jurisdictional affiliates. This partnership will allow the Council to represent and canvas concerns from many of Australia’s 450 small and medium sized waste management enterprises. Together, state affiliates and the national office will coordinate to create, and advocate for, cohesive national policy.

From today, the Council will commence working to create, share and build support for policy positions which will move the industry forward. Initial areas of focus include better planning, a fair market, the national harmonisation of the regulations governing the industry and effective policing of standards.

The Council welcomes media enquiries, dialogue with waste management companies seeking involvement in the NWRIC and feedback from stakeholders.