Expressions of interest for waste to energy cap licences close 17 February

There is still time to submit an expression of interest (EOI) application to Recycling Victoria for a waste to energy cap licence.

A waste to energy cap licence is required for any new operator proposing to operate a thermal waste to energy facility in Victoria or any existing operator seeking to increase the permitted capacity of their proposed facility.
EOI applications must be submitted by 17 February 2025 to participate in the cap licensing process.
More information on who needs a licence and how to apply is available here: https://www.vic.gov.au/waste-energy-scheme

Why does Victoria need waste to energy?

Waste to energy provides an alternative to landfills for most types of residual waste, reducing the state’s reliance on landfills for non-recyclable or non-recoverable waste.

In 2022−23 Victorians generated an estimated 14.6 million tonnes of waste. While 69 per cent of this waste was recovered or recycled, an estimated 4.5 million tonnes of residual waste was still went to landfill.

On current trends, Victoria’s residual waste is projected to increase to nearly nine million tonnes per year by 2053. At this rate, Victoria will start to run out of approved landfill capacity in the mid-2030s.

The Victorian Government is committed to a circular economy and has set ambitious targets to divert 80 per cent of waste from landfill by 2030.

Waste to energy facilities can improve the recovery of materials, metals and aggregates such as bricks, rubble and glass. These materials make up a significant portion of residual waste. Because these materials do not combust in waste to energy facilities, they can be recovered and recycled or used in construction applications.

Facilities will be required to demonstrate that they have appropriate controls in place to ensure recyclable material (or banned waste) is not processed.

Cap licences

A cap licence will allow a thermal waste to energy facility operator to process permitted waste up to a specified maximum amount at their facility.

The cap limit has been set at two million tonnes of permitted waste that can be processed by thermal waste to energy facilities each year. This may be further increased, subject to a regulatory impact statement being completed in early 2025.

The cap limit is additional to tonnage already allocated to existing operators.

The cap ensures investment in waste to energy facilities does not compromise current and future investment in Victoria’s efforts to avoid, reuse and recycle more waste.

If the cap limit is increased during the current cap licensing round, Recycling Victoria may issue and allocate cap licences up to the increased cap limit.

Once the cap has been exhausted, there may be limited further opportunities for investment in thermal waste to energy in Victoria.

For more information on how submit an EOI visit: https://www.vic.gov.au/waste-energy-scheme