Cleanaway Waste Management Limited (Cleanaway) has secured a joint venture (JV) with Australian bioenergy and methane abatement company LMS Energy Pty Ltd (LMS Energy).
The partnership will process and monetise landfill gas (LFG) at Cleanaway’s Lucas Heights landfill in New South Wales.
LMS Energy will invest about $46 million in the construction of new bio-electricity assets, including a 22-megawatt generation facility, which will replace the existing electricity generation infrastructure owned and operated by a third party.
Cleanaway will contribute exclusive rights to the landfill gas at Lucas Heights for 20 years.
Both parties will hold equal ownership in the JV, leveraging their combined capabilities to maximise returns while minimising the capital outlay for Cleanaway.
Through the sale of landfill gas, provision of services, and from the JV itself, Cleanaway expects the partnership to contribute incremental earnings before interest and taxes (EBIT) of about $5 million in the financial year 2025 (FY25) and about $10 million in FY26.
Beyond FY26, post full commissioning of the assets, assuming current operating and regulatory conditions, the partnership is expected to deliver incremental EBIT of about $15 million per annum.
Mark Schubert, Chief Executive Officer and Managing Director of Cleanaway, said optimising the landfill gas opportunity is a key focus area of Cleanaway’s Blueprint 2030 strategy.
“This announcement is particularly rewarding, as it represents a meaningful step towards achieving our target of more than $50 million of EBIT in FY26 from the Operational Excellence program,” said Schubert.
“The JV aligns with our commitment to disciplined capital management, and utilising capital-lite approaches to grow earnings and drive improved returns for shareholders while also supporting our commitment to reduce greenhouse gas emissions.”
For more information, https://www.cleanaway.com.au/
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