Acquisitions in the spotlight part two: Cleanaway

Waste Management Review talks to some of Australia’s largest waste management companies about the role of scalability in the future of the waste sector. 

This article is the second in a three part series featuring Bingo Industries, Cleanaway, Corio Waste Management and SUEZ. 

With more than 300 sites, 115 prized infrastructure assets and around 6000 employees and 4950 vehicles, Cleanaway is Australia’s largest waste management company. 

At the heart of its approach to scaling up and supporting Australia’s recycling woes is Cleanaway’s Footprint 2025 strategy – a plan to significantly grow its infrastructure by 2025. Launched in 2015, Footprint 2025 continues to expand.

It’s already done so in 2019 with a new waste transfer station and resource recovery facility in Sydney licensed to process 300,000 tonnes of putrescible waste per annum. In addition, its recent infrastructure moves also include a new South East Melbourne Organics Facility, a 50 per cent stake in ResourceCo’s process engineered fuel facility in Sydney and a transfer station in Perth.

Official data on market share is difficult to come by, but CEO Vik Bansal estimates the company controls around the mid to high 20 per cent of the total waste management market.

Its annual report shows the integration of Toxfree is on track to achieve a $35 million synergy target by June 2020. Cleanaway’s acquisition of Toxfree in 2018 was unopposed by the ACCC and concluded that increased vertical integration would be unlikely to substantially lessen competition due to competitive constraints imposed by alternative suppliers.

The official review shows customers can and do disaggregate contracts if they are dissatisfied with pricing and/or service levels. Likewise, there are other large suppliers present in multiple waste streams and geographical areas throughout Australia.

Cleanaway’s net revenue, which represents gross revenue less landfill levies collected and passed through the customer, increased by 35 per cent in 2018-19 to $2.11 billion compared to the prior corresponding period. Its growth was driven by a combination of organic growth and the Toxfree acquisition.

“We have spent about $150 million building prized waste infrastructure across the country which includes transfer stations, resource recovery centres, used oil refinery and liquid, hazardous and non-hazardous waste processing facilities organically and via the acquisition of Toxfree,” Vik says.

Its earnings before interest, tax, depreciation and amortisation increased 34 per cent to $433.7 million in 2018-19 due to improved profit performances across solid waste services, industrial and waste services and liquid waste and health services. In its annual report, Cleanaway highlights itself as having an excellent balance sheet with debt ratios well within banking covenant requirements.

The annual report declares volatility in the commodities supply chain has led to increased sorting costs and instability in commodity pricing. Vik has often maintained Australia’s recycling crisis presents an opportunity rather than a threat to the viability of the sector.

“It is the right thing for the waste industry in Australia and in general. There is something not right about waste going to developing countries and them sorting it out. We just don’t want that to happen,” Vik says.

He says that being a publicly listed entity places additional pressure on Cleanaway as a company, but it’s a challenge it is pleased to take on.

“Because we are a listed entity and have to go to market every six months, our changes become a lot more visible than an international subsidiary or a company which is not listed,” he says.

The positive side effect of market fluctuations is that Cleanaway has fast-tracked much of its Footprint 2025 strategy to support the local marketplace.

Following the collapse of SKM Recycling Group, Cleanaway Waste Management acquired the senior secured debt in the group for around $60 million with the exception of its glass recovery services business. This includes the property, plant and equipment from a network of five recycling sites, comprising three materials recovery facilities (MRFs), a transfer station in Victoria and a MRF in Tasmania. SKM also has two sites in South Australia.

KordaMentha have been appointed the receivers of the group. At the time of Waste Management Review’s interview with Vik, Cleanaway was looking to acquire the assets and return them to a sustainable footing as part of the sale process being undertaken by the receivers.

Prior to the publication date, Cleanaway was successful in its bid for SKM assets with completion of the process on track for the end of October. One of its sites in the network includes an advanced plastic sorting facility in Victoria.

Commenting on the acquisition, Vik said significant progress had been made in clearing waste stockpiles from the sites, repairing plant and equipment and bringing the sites to required safety, environmental and operational standards.

“We expect to gradually restore operations in Victoria over the coming months,” he said.

Speaking to Waste Management Review, Vik agrees some systematic changes are needed to support the future viability of the industry. However, he concedes collection will be difficult to consolidate due to the low barriers to entry.

“There is something fundamentally wrong about the industry structure. Aside from Visy, there is not even a single big waste management player which is upstream and vertically integrated. There is not even a single big waste management player in commingled recycling in Victoria.

“China’s National Sword has triggered the industry structure to go back on a balanced, even, long-term sustainable footing and hence our interest in SKM assets.”

“A company like Cleanaway cannot have a Footprint 2025 strategy flowing through without commingled assets in Victoria. That is part and parcel of a vertically integrated waste management company.”

It was speculated that Cleanaway was interested in buying SKM’s glass recycling business not covered by the receivership. Vik says that while Cleanaway was initially interested in this, the acquisition is now in doubt given the scale of glass stockpiles.

Instead, should Cleanaway acquire SKM’s assets, Vik says Cleanaway will look at building its own glass beneficiation plant.

He says that Cleanaway’s future focus will be to become a downstream processor.

“We see ourselves investing in plastic pelletising and going downstream on glass crushers,” Vik says.

Vik says that Cleanaway’s view is that Australia needs to move to a harmonised national four-bin system with mandatory FOGO and glass bins the key to improving commodity value.

“We are ready to invest a lot more in different parts of the country if we can see that certainty of policy and harmonisation,” he says, adding there is a fair amount of Footprint 2025 still to be revealed.

Likewise, he says that whenever Cleanaway invests, it looks at the entire value chain, including location, policy framework and its total market share.

Vik says that each state should have a container deposit scheme but recognises it might be difficult to harmonise all at a national level.

He says this system would then become best practice through better education, investment in infrastructure and manufacturer and consumer acceptance of recycled material as the final piece of the circular economy puzzle. 

Footprint 2025 is going from strength to strength as Cleanaway in October announced a joint venture with Macquarie Capital’s Green Investment Group to develop a waste-to-energy (WtE) project in Western Sydney.

A site has been acquired for a potential facility in Eastern Creek and an environmental impact statement is being prepared and released for public consultation early next year. The site is expected to cut Western Sydney’s annual landfill volumes by 500,000 tonnes – almost a third of the red bin waste generated per year in the local area.

CONSOLIDATION DEBATE

Trevor Thornton is a lecturer in hazardous materials management at Deakin University and has prior experience with the Environment Protection Authority Victoria.

He says the metropolitan areas certainly benefit, but one concern would be whether the same level of service is afforded to regional areas.

“I’ve heard some issues about large companies that get a statewide contract but just outsource a lot of the more distant rural areas under their banner, but they don’t get the same service to the client.

“But I think in the main, if you’ve got five or six companies offering the complete service, I think that’s a good thing.”

Likewise, he believes the purchase of ailing companies such as SKM can only be a good thing, and that if additional oversight is required, that would be a matter for the ACCC.

He says the trend towards consolidation in Australia would mirror that of other more populous nations such as the US, Canada and parts of Europe.

Corio Waste Management CEO Mathew Dickens

Mathew Dickens, CEO of Corio Waste Management, a family-owned business focused on waste collection and organic waste treatment based in Geelong, sees an opportunity from consolidation to compete with the major players.

“Consolidation does lead to less competition, but it can also mean the acquirer has more to lose as you have most of the market share and that can only go in one direction, but for companies my size it creates opportunity,” he says. 

Mathew says with further consolidation, Corio can aim to compete on service standards, respond quickly to changing customer requirements and provide a point of difference as a family-owned business.

“From a customer perspective it [further consolidation] would mean less choice and higher prices, and that’s not a problem for us as we don’t compete on the basis of price. We know what our costs are because we measure and analyse them all the time,” he says.

He says that Corio tends to focus on what it can offer in terms of variety and frequency of service, collection standards and customer service.

Mathew says the recent consolidations are nothing new but rather history repeating itself in an industry cycle where consolidation inspires new entrants into the industry.

In the US, integrated companies such as Waste Management Inc, Clean Harbors, Republic Services and Advanced Disposal dominate the market.

Mathew points out that Republic Services is an example of smaller operators merging to become a larger organisation, a trend that could always repeat itself locally.   

Republic Services is one of the largest providers of non-hazardous solid waste and owns around 207 transfer stations and 190 landfills, according to Superperformance SAS data.

He says there will still be room for niche, specialised operations that handle smaller volumes.

“If there is going to be a remanufacturing industry that’s developed onshore, you need to spread that risk,” he says.

Mathew says that Corio remains focused on growing its organic waste collections in Geelong and Melbourne treated at its composting facility
based in Shepparton.

“We want to build tunnel composting facilities in other regions in Victoria. It relies on government contracts, but we’re confident we can make it happen,” he says.

Next week’s instalment features an interview with SUEZ CEO Mark Venhoek. 

Click here to read part one

Related stories:

Cleanaway acquires SKM Recycling for $66 million

Cleanaway Waste Management has acquired the assets of SKM Recycling for approximately $66 million.

The acquisition follows a public sale process by KordaMentha, who were appointed receivers and managers of SKM by Cleanaway, after the company acquired SKM’s senior secured debt.

Cleanaway CEO and Managing Director Vik Bansal said significant progress had been made clearing waste stockpiles, repairing plants and equipment and bringing SKM sites to required safety, environmental and operational standards.

“I would like to acknowledge and thank the Victorian Government who helped expedite the clearing of waste stockpiles and the return of operations at the Laverton North site, through the loan provided to the receivers,” Mr Bansal said.

“We expect to gradually restore operations in Victoria over the coming months, to provide councils with a quality, sustainable solution for their recycling.”

Pursuant to the acquisition, Cleanaway will obtain the properties, plant, equipment and other assets of SKM, subject to customary completion adjustments.

The acquisition will provide Cleanaway with a network of five recycling sites, including three material recovery facilities and a transfer station in Victoria and a material recovery facility in Tasmania.

One of the Victorian facilities, in Laverton North Victoria, includes an advanced plastic sorting facility that separates plastics into individual polymer grades for sale or input into pelletising facilities.

According to an ASX statement, the acquisition also includes two properties in South Australia, which are not currently expected to form part of future operations and may be sold.

“Cleanaway is expected to offer employment to the majority of SKM’s full time staff,” the statement reads.

Completion of the acquisition is expected to occur by the end of October, with sale proceeds applied to repay Cleanaway’s senior secured debt, accrued interest and costs associated with the receivership.

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Cleanaway launches waste-to-energy plan

A Cleanaway and Macquarie Capital Green Investment Group joint venture will see waste from households and local businesses converted into power, for as many as 65,000 Western Sydney homes.

Cleanaway and Macquarie Capital are co-investing and co-developing the waste-to-energy project, which will eventually be operated by Cleanaway.

According to a Cleanaway statement, the proposal targets red bin waste that cannot be recycled, and will have the capacity to cut Western Sydney’s annual landfill volumes by 500,000 tonnes – almost a third of the red bin waste generated per year in the local area.

Cleanaway CEO Vik Bansal said that with technology available today, there is an opportunity for Western Sydney to become a leader in smart waste management.

“Our proposal, if successful, will turn rubbish that would have been landfilled into a clean source of energy that supplies the grid and contributes to more affordable power for consumers,” Mr Bansal said.

“By diverting waste from our landfills, an energy from waste facility would reduce greenhouse gas emissions by more than 450,000 tonnes of carbon dioxide each year. This is the same as taking approximately 100,000 cars off our roads.”

Mr Bansal said Cleanaway is committed to a comprehensive approvals and consultation process, and if successful, will pave the way for a facility using the world’s best high-temperature combustion technology.

“The emission cleaning systems ensure the emissions leaving the plant are cleaned before they enter the atmosphere,” Mr Bansal said.

“The proposal will be assessed considering the triple bottom line – making sure it creates social, environmental and economic benefits. We won’t spare any effort to ensure the design is leading edge in terms of environmental controls and safe for the community.”

To date, a site has been acquired for the potential facility at 339 Wallgrove Road, Eastern Creek, located in an industrial area surrounded by waste and recycling centres.

Preparation of an Environmental Impact Statement is underway, which will contain information about the project proposal including environmental assessments.

The statement will be released for public consultation early next year.

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Coles partners with Cleanaway to convert waste into fuel

Coles has partnered with Cleanaway to recover energy from difficult to divert waste streams, at the Cleanaway ResourceCo Recovery Facility in New South Wales.

The partnership forms part of Coles’ zero waste to landfill supermarket trail, which aims to alter in-store processes, put greater focus on source separation and treat waste as a resource.

Coles Chief Property and Export Officer Thinus Keeve said the trial would help Coles find new ways to reduce waste in stores.

“Waste management is a key component of the sustainability of any business, and reducing waste is a very important issue for our customers,” Mr Keeve said.

“Everyone knows Australia has challenges in how we deal with our waste. That goes for everyone from households sorting their recycling to businesses like Coles. We all have a responsibility to play our part.”

Mr Keeve said that by working with Cleanaway, Coles will be able to recover residual dry waste such as mixed plastic and timber, which historically has been difficult to divert from landfill.

“The Cleanaway ResourceCo Recovery facility uses dry waste to produce Process Engineered Fuel (PEF), which is then used to offset the demands of heavy industry for fossil fuels,” Mr Keeve said.

Cleanaway Solid Waste Services New South Wales Regional Manager Alex Hatherley said the process will provide a solution for Coles stores that produce high volumes of mixed back-of-house plastics.

“Our facility is unique in its ability to divert commercial dry waste from landfill, recover recyclable materials and then convert the remaining combustibles to a sustainable fuel source, PEF,” Mr Hatherley said.

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Return and Earn consumer research released

According to recent Return and Earn consumer research, eight out of 10 residents are satisfied with the New South Wales container deposit scheme (CDS), and over two-thirds believe it contributes to long-term recycling outcomes for the state.

TOMRA Cleanaway CEO James Dorney applauded the New South Wales community for their role in the scheme’s success.

“The success of the scheme is a testament to the incredible efforts of the NSW community who in July, returned and earned more than two billion containers in just 19 months since the scheme began,” Mr Dorney said.

“The survey showed that more than half of NSW residents are using the scheme, which in turn demonstrates how easy access to drop-off points and a well-planned network of collections and recovery infrastructure are critical to the success of any recycling system.”

According to the survey, 55 per cent of the New South Wales population have used the scheme, up from 48 per cent in December 2018.

Additionally, the survey showed that 78 per cent believe the scheme will benefit the environment.

Cleanaway Solid Waste General Manager David Clancy said the scheme had far exceeded expectations, reaching one billion containers in a year and two billion in 19 months.

Mr Clancy estimates that Return and Earn is likely to hit three billion containers before the end of 2019, accounting for almost half of all beverage containers sold in the state.

“Container deposit or refund schemes incentivise customers to return their drink containers to collection points in exchange for a refund,” Mr Clancy said.

“They are a perfect example of delivering on the triple bottom line of sustainability – there’s less litter in the environment, refunds can be used to benefit local community groups, associations and charities, and finally recycled containers become a part of the circular economy, extending the use of existing materials while reducing reliance on natural resources.”

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Cleanaway acquires SKM debt

Cleanaway Waste Management has acquired the senior secured debt in the SKM Recycling Group from the Commonwealth Bank of Australia, the largest lender to SKM, for approximately $60 million.

According to a Cleanaway statement, the debt is secured against all assets of SKM, with the exception of its Glass Recovery Services business.

“This includes the property, plant and equipment that form part of a network of five recycling sites, including three material recovery facilities and a transfer station in Victoria and a material recovery facility in Tasmania,” the statement reads.

“The site in Laverton Victoria includes an advanced plastic sorting facility, which separates plastics from material recovery facilities into clean, individual polymer grades for sale or input into a pelletising facility.”

Following the debt acquisition, Cleanaway appointed Mark Korda and Bryan Webster of KordaMentha receivers and managers for the entire SKM Recycling group, excluding its Glass Recovery Services entities.

“KordaMentha will immediately implement a three-point plan, with the aim to get the business back to capacity to help ease Victoria’s waste crisis,” the statement reads.

“The rescue and restructure package may include a sale of all or part of the assets. If a sale process is undertaken by the receivers, Cleanaway intends to participate in the process, and will undertake a thorough due diligence review of the business.”

Cleanaway CEO and Managing Director Vik Bansal said the acquisition would allow Cleanaway to work with the receivers to examine viable options for SKM.

“If a sale process is undertaken, and if we are successful in purchasing any assets, we will return the assets to a sustainable footing,” Mr Bansal said.

“It will also present us with an opportunity to add to our network of prized infrastructure assets as part of our Footprint 2025 strategy.”

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Electric vehicles hit the road

Waste Management Review talks to the stakeholders involved in trials of electric vehicles trucks to find out the challenges and opportunities behind the burgeoning technology.

In recent months, electric vehicle (EV) trials have been taking off with private waste management companies and councils across the country.

The City of Belmont, about eight kilometres east of the Perth CBD, was announced as the first site in WA for SUEZ’s fully EV truck.

Two months later, Cleanaway announced the first of two fully electric waste collection vehicles had begun kerbside collections in Victoria as part of a three-month trial.

Hobsons Bay at the time of writing had begun servicing households, while Mooney Valley had also planned to host the vehicle. Another trial in a council yet to be announced will also take place in WA.

The trial aims to ensure the vehicles will be tested across a variety of terrains and municipal settings.

As early as the 2018 Melbourne Waste Expo, WM Waste Management Services announced its plans to test three electric trucks with the City of Casey in Melbourne. These began over the past few months.

All EV-powered drive trains were fitted by SEA Electric with a Superior Pak body. In the City of Belmont, SEA Electric estimates the EVs will save around 35,000 litres of diesel each year and avoid around 90 tonnes of CO2 emissions annually.

The noise levels are significantly reduced and reportedly akin to a whisper. The EVs are also presumed to offer significantly reduced maintenance, operate for more than 150 kilometres uncharged and have zero emissions from the vehicle.

EVS ON-BOARDING

Cleanaway is working towards zero-emissions vehicles by powering its EVs with its own renewable sources of electricity generated in other parts of the business.

Cleanaway Head of Fleet Paul Young tells Waste Management Review the EVs conversation started with SEA Electric and Superior Pak around 12 months ago. Superior Pak supplied and electrified the chassis and provided the body.

“It ties very clearly into our company mission to make our operations as environmentally sustainable as possible,” Paul explains.

He says that by not waiting for an original equipment manufacturer (OEM) solution, Cleanaway also identified an opportunity to be a market leader.

“We have a high level of inquiries mainly from our municipal customers around energy and being green so that is why we went down this path.

“We use the term trial, but the assets we’re building are starting the process. We’re not trialling and taking them out. They form part of our fleet like any other asset and we expect the asset to be operational like all other vehicles.”

Once the EVs have been tested by both SEA Electric and Superior Pak (SEA Electric tests the asset by running the vehicle for around 100 hours), they are sent off to the Cleanaway depot, where drivers undergo training by Superior Pak with SEA Electric.

SEA Electric continues to work with the drivers to optimise the vehicle for performance even as the driver is operating the vehicle.

Paul says the body operation is exactly the same as standard diesel vehicles with no changes to the mechanics of the operation.

He adds that another difference is that batteries will be replaced for longevity compared to engine rebuilds for diesel.

Paul says the noise reduction is significant. When it comes to wear and tear, the brakes are considered regenerative, lowering the number of brake pad changes required.

This means that during braking, rather than solely using the conventional brakes, the electric motor acts as a generator to provide a charge to the batteries. As well as providing a useful battery top up, Paul says this is expected to significantly reduce brake wear and subsequently repair and maintenance costs.

“While it is very early days, from a long-term cost perspective we see the benefit in reduced maintenance and fuel. However this will need to be monitored as the vehicle ages to verify the benefits.”

Paul says the vehicles are compliant with National Heavy Vehicle Law and other standard regulations.

While the batteries have added some weight to the vehicle, Paul says he expects this to shift over time.

For the time being, a minor compromise has been made on payload to gain the other benefits.

THE SETUP

Tony Fairweather, Group Managing Director at SEA Electric, says the entire power system is electrified.

This not only includes the battery and electric motor for direct drive to the existing differential, but all of the ancillaries such as air conditioning and heating for the cab, power steering, air compressor for braking and a 22-kilowatt on-board charger.

Tony says SEA Electric began developing the power system (known as SEA-Drive) around 2013.

He says that the company waited for the price of batteries to drop below USD 300 per kilowatt hour (kWh) before coming to market in early 2017.

Tony says that other than OEM chassis selection by the customer, most vehicles deployed to the various councils are largely similar in power system design and performance.

“In the three-axle rigid segment, we commenced with a 180kWh battery pack. However, due to the evolution of batteries and volume over time, our supplier is now able to offer 216kWh in the same size battery pack, which will increase further in the near term.”

He says the electric motor offers around 3500 newton metres of torque and 350kW of power. The vehicles charge in about eight hours (using the on-board charger), but have the ability to charge with (up to) 120kW DC charger and permit about 3500 charge cycles with a 10-year lifespan.

“We run about 700 kilograms heavier than the original tare weight of the internal combustion engine cab chassis which is around five to six per cent heavier. However as the battery density increases, this will reduce over time.”

The trucks are all fitted with an onboard charger, as this segment will typically require a duty cycle to be completed on a single charge, before returning to base to charge with a standard three-phase, 32A power point.

Tony says the vehicles charge during off-peak energy periods in the evening, which is cost-effective for operators, with the option of deriving their energy from non-renewable sources in the grid.

He says that now that the EVs have been tested, the next step is educating buyers who may be apprehensive. Tony notes that in California, buyers are offered up to $165,000 rebate to purchase an electric refuse truck while New York, Texas and Florida are expected to take on similar programs.

He says that given the duty cycle and relatively low kilometres of refuse vehicles, the business case is a no brainer for those in the metropolitan region, with a payback period of about four years without incentives.

He says there is also no risk of battery fires in the electric EVs as the batteries are large and operate at much lower temperatures than smaller EV batteries.

Tony says the next steps are also to work towards increasing government support. He says that Heavy Vehicle National Law regulations around gradeability and noise need to be updated to ensure that EVs don’t have to go to the mainly irrelevant process of complying with Vehicle Standards Bulletin 6 (VSB6).

Michael Strickland, WM Waste Management Services Project Manager, says that the provision of EVs in its service proved an important factor to winning a tender with the City of Casey.

The company currently has three EV compactor trucks as part of its newly acquired contract. It is looking at additional EVs in single axle and has already seen the benefits firsthand of reduced noise.

He says the vehicle uses a lot of power when picking up high speed on the freeway, so it’s about minimising travel time.

While it is still early days for the EV trial, Michael says a few issues are still being ironed out.

“Part of the issue is the trucks were modified and weren’t from the factory floor and with the EV factor, the floor truck had difficulty registering as there are a lot of different design rules,” Michael says.

Michael says initial computer teething issues have been sorted, although the company is getting around 140 kilometres of trips before a charge is needed. To ensure the collection run goes smoothly, start and finish crews work around this, ensuring WM Waste Management Services is able to get two runs a day.

BARRIERS TO ENTRY

A Senate select committee released recommendations earlier this year into increasing the uptake of EVs in the car, truck and bus sector. Some of the recommendations included that the Federal Government develop a national EV strategy to accelerate uptake and manage the risk and transitions of the vehicles.

Dr Peter Hart, former Chairman of Australian Road Transport Suppliers Association, welcomes the shift to electrification but is yet to be convinced of their effectiveness in refuse applications.

“The amount of energy you can store in one litre of battery is still only a fraction to that that can be stored in one litre of diesel fuel, so EVs will be advantageous where energy can be scavenged,” Peter says.

“I think lithium battery technology is advancing rapidly and energy density will continue to increase.

“There are safety issues you run into if you try and get too much energy into a given space. At present, technical standards do not adequately require protection against signs of internal battery degradation.”

He says like any new technology, the EVs will require trial and error to ensure the systems integrate.

“The key success factor for EVs in the waste industry will be to recover more than 50 per cent of the energy used to accelerate the truck from one pick-up point to the next, and to lift the bin. If this can be achieved, the range problem will be solved and the economics will be favourable.”

Charging points will also need to be kept out of the weather to prevent safety risks.

“If you went back a few years, everyone was interested in EVs for long distance haulage, but the reality is we can’t store enough energy so people are now interested in hydrogen fuel cells. In the metropolitan area around deliveries I think EVs will have a significant advantage.”

He says that battery fires are a risk. Lithium ion batteries should be charged using a battery management system that varies the charging voltage to individual cells to avoid over-charging. Peter says that EV trucks must have a well-designed battery management system.

Peter’s call to action is for the development of national (and international) standards that define good practice. He hopes the outcome of trials of EVs in the waste industry will be successful.

Victorian Waste Management Association (VWMA) Executive Officer Mark Smith says that those businesses who are testing and piloting EVs are also testing and piloting the re-sell value of these vehicles.

Mark says that as Australians see cheaper power provided to the national grid, EVs will effectively offer a competitive alternative to diesel and even beat the running costs for standard vehicles in urban/inner city environments.

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Cleanaway opens new Melbourne depot

Cleanaway CEO Vik Bansal has officially opened the company’s new Perry Road Office and Collections Depot in Dandenong South.

The 53,000 square meter depot will house Cleanaway’s business and operational teams including the Victoria Post Collections leadership team, the commercial, industrial and municipal collections’ business, sales, administration, finance and fleet teams.

According to a Cleanaway news statement, the site features a 20-bay workshop facility designed for vehicle compliance and fleet productivity, with paved parking areas for 164 collection vehicles and the new electric vehicle fleet.

“The site is also equipped with fuelling stations with 100,000 litre capacity and automatic truck and parts washing bays,” the statement reads.

“Bringing together our administrative and operational teams from across Greater Melbourne is a key step forward to serving our customers better and making a sustainable future possible for communities across Australia.”

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Cleanaway trials electric waste collection vehicles

The first of two fully electric Cleanaway waste collections vehicles have begun kerbside collections in Victoria as part of a three-month trial.

The first vehicle began servicing household collections in Hobsons Bay. City of Greater Geelong and Moonee Valley will also host the vehicle to ensure it is tested across a variety of terrain and in different municipal settings.

Cleanaway CEO Vik Bansal said the vehicles are among the first in Australia to service kerbside collections, and will be under pressure to carry full loads and complete scheduled runs every day.

“With almost 5000 vehicles on the road each day, servicing homes and businesses all over Australia, we are looking for ways to do that more sustainably while continuing to deliver consistent service,” Mr Bansal said.

“Sustainability is about more than removing emissions at all costs. If service levels drop or waste collection costs increase significantly for ratepayers – that isn’t sustainable.”

Cleanaway Head of Fleet Paul Young said the company is optimistic about proving the reliability of the technology.

“The trial is designed to encourage fast learning so the electric vehicles can continue operating once the trial has ended, allowing Cleanaway to introduce more electric and combination fuel vehicles to the permanent fleet,” Mr Young said.

“With zero emissions, the vehicles are expected to run for 180-200 kilometres before needing to recharge. The brakes also regenerate – reducing repair and maintenance costs and the consumption of other parts like brake pads.”

According to Mr Young, the vehicles significantly reduce noise, making early morning or late-night collections possible for some waste streams.

Hobsons Bay Mayor Jonathon Marsden said the trial complements the great work already happening in the sustainable transport realm.

“These initiatives support our key priorities in the Hobsons Bay 2030 Community Vision of exploring sustainable practices and growth through innovation, technology, job creation and education,” Mr Marsden said.

“It’s also a step in the right direction of council’s draft Waste and Litter Management Strategy 2025 to trial alternative fuels in the waste, recycling and litter collection fleet.”

The vehicles were commissioned by Cleanaway in conjunction with SEA Electric and Superior Pak and are not yet in mass production.

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