Masdar acquires 40 per cent stake in East Rockingham WtE facility

Global renewable energy company Masdar has made its first Australian investment, after acquiring a 40 per cent stake in Western Australia’s East Rockingham Resource Recovery Facility.

Masdar and Abu Dhabi advisory and development firm Tribe Infrastructure Group have invested in the waste-to-energy project via their Abu Dhabi Global Market-based joint venture holding company, Masdar Tribe Energy Holdings Limited.

Masdar Chief Executive Officer Mohamed Jameel Al Ramahi said extending Masdar’s reach into Australia is an exciting step forward for the company’s clean energy operations..

“The problem of dealing with everyday waste is a global challenge, with more than two billion tonnes of municipal solid waste generated each year. To this end, we are proud to be helping the state of Western Australia to deliver clean sources of power generation and sustainably manage its municipal solid waste,” Mr Al Ramahi said.

“The Australian waste-to-energy sector provides excellent commercial potential in the long-term.”

Tribe Infrastructure Group Chief Executive Officer Peter McCreanor said he looks forward to delivering clean energy infrastructure to Australia.

“This is just the first of numerous such development projects we’re working on, and our partnership with Masdar is an integral part of our strategy for Australia,” he said.

“We are proud to have played a leading role in the development and financing of the East Rockingham Recourse Recovery Facility, assembling a world-class team to deliver this important project for Western Australia.”

The $551 million facility reached financial close 23 December 2019 with support from a $18 million grant from the Australian Renewable Energy Agency, and $57.5 million in subordinated debt from the Clean Energy Finance Corporation.

The facilities development consortium includes Hitachi Zosen INOVA, John Laing Investments and Acciona Concesiones.

When complete, the facility will process 300,000 tonnes of non-recyclable municipal, commercial and industrial waste and up to 30,000 tonnes of biosolids per year.

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East Rockingham WtE facility announces financial close

The consortium developing the East Rockingham Resource Recovery Facility has reached financial close on its waste-to-energy project (WtE) in Western Australia.

The consortium is led by Hitachi Zosen Inova, with SUEZ operating as waste management partner under a 20-year contract.

SUEZ Australia & New Zealand CEO Mark Venhoek said the project demonstrates SUEZ’s commitment to develop WtE in Australia.

“WtE is currently the missing link in Australia’s waste management hierarchy and will play a key role as we move towards a circular economy,” Mr Venhoek said.

“The project will significantly accelerate the improvement of waste treatment practices in the Perth region, as well as reducing their environmental footprint.”

As waste management partner, SUEZ will facilitate waste supply via post-recycling residuals, operations and maintenance, power off-take and disposal services for fly ash residue and non-processable waste.

The facility will treat approximately 300,000 tonnes of residual waste from municipal, commercial and industrial sources and generate 29 mega watts of renewable energy each year.

The facility is the first of its kind in Australia to use “waste-arising” contracts, which provide flexibility to councils to help them meet waste reduction targets without overcommitting waste volumes.

Hitachi Zosen Inova Australia Managing Director Marc Stammbach said the facility will use proprietary moving grate combustion technology.

“For Hitachi Zosen Inova this project marks our entry into the Australian market and introduces our world renowned and leading technology to Australia – something we’ve been working on for a long time,” he said.

“For the Perth area this project marks a major step towards sustainability and renewable energy from waste.”

Financing of the $511 million project was supported by an $18 million grant from ARENA.

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East Rockingham first waste-to-energy project for SUEZ

WA’s East Rockingham Resource Recovery Facility has awarded waste management giant SUEZ a 20-year minimum contract as waste management partner.

SUEZ has partnered with a consortium of four companies running the facility – Hitachi Sozen INOVA (HZI), Tribe Infrastructure Group and New Energy Corporation, which won a series of competitive tenders for long-term contracts in the Perth metropolitan area before securing the East Rockingham partnership.

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The facility encompasses the design, construction, financing and operation of a greenfield waste-to-energy facility, 40 kilometres south of the Perth CBD.

The project aims to treat approximately 300,000 tonnes of waste per year from municipal, commercial and industrial sources including up to 30,000 tonnes per year of biosolids.

Energy generation targets are expected to reach 29 megawatts of renewable energy, enough to supply 36,000 homes following the start of construction slated for 2019.

SUEZ will provide 65,000 tonnes per year of commercial and industrial waste, maintenance services, removal of non-processable waste at its Bibra Lake and North Bannister facilities and the purchase of renewable electricity generated for its Perth operations.

This is the second waste-to-energy plant planned for the Rockingham-Kwinana industrial region.

WA EPA recommends approval for East Rockingham WtE

The WA EPA has recommended conditional approval of New Energy Corporation’s change in technology from gasification to combustion for its proposed East Rockingham waste to energy (WtE) facility.

New Energy Corporation proposed using Hitachi Zosen Inova (HZI) Grate Combustion technology, which the EPA found did not bring any further risks to the surrounding environment or communities.

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The technology allows for a greater waste throughput at the facility, increasing the amount of waste it can process from 225,000 tonnes per year to 300,000, leading to increased electricity generation.

The EPA has also recommended strict new conditions for the proposal to ensure only residual waste is accepted at the WtE facility to be consistent with the state’s waste hierarchy.

The EPA has defined residual waste as “waste that remains after the application of a best practice source separation process and recycling systems, consistent with the waste hierarchy”.

Under the new conditions, WtE proponents will need to develop a Waste Acceptance System Plan and a Waste Acceptance Monitoring and Management Plan to identify the suppliers of waste and describe the types of waste, waste loads and quantities accepted.

WA currently has four approved WtE facilities, however none are in operation.

EPA Chair Tom Hatton said the HZI technology is used widely around the world, having been tried and tested in more than 500 plants.

“While the gasification technology originally proposed for the facility was also deemed to be acceptable by the EPA, the combustion technology has been used in a number of facilities of a similar scale, and we have determined it does not pose any additional risks to the surrounding environment and community,” Dr Hatton said.

Environment Minister Stephen Dawson will make the final decision for the proposed change. The EPA’s report is also open for a public appeal period which closes Monday 5 November.

HZI consortium sign 20-year waste to energy supply deal

A Hitachi Zosen Inova (HZI) led consortium has signed a 20-year agreement with the Eastern Metropolitan Regional Council (EMRC) for the supply of waste to the East Rockingham Recovery Facility.

Approximately 330,000 tonnes of waste are converted into renewable energy at the East Rockingham Resource Recovery Facility (RRF), producing 28 megawatts of electricity, enough to power 36,000 homes.

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HZI’s partners in the consortium include the New Energy Corporation and Tribe Infrastructure Group.

The project will set a benchmark in the Perth market for waste to energy projects in terms of flexibility and value and represents a $400 million private sector investment in the metro area.

Under the agreement, the EMRC’s participating councils will supply residual waste to the RRF and will only pay for capacity they use. This means councils that have successfully implemented landfill waste reduction schemes will receive no penalties.

This system favours a service provider model that supports higher order utilisation or recovery of waste resources instead of a take-or-pay structure which can lead to financial penalties if committed volumes are not met.

HZI will act as the technology provider, engineering and construction contractor and will execute long term operations and maintenance contract for the project.

The RRF will divert 95 per cent of the waste it receives from EMRC away from landfill.

New Energy Chairman Enzo Gullotti said he supports waste minimisation and composting should councils choose to do that.

“It’s an important part of our social licence to operate our RRF over the long term. We’ll deliver the EMRC the best possible environmental outcome for residual waste streams and certainty of price over the period of the contract. This presents a real opportunity to divert waste from landfill and deliver value for money to the ratepayers of the EMRC councils,” Mr Gullotti said.

“The EMRC should be commended for showing leadership in diverting waste from landfill. This signing represents the delivery of a strategic commitment the EMRC undertook back in 2000 in this regard. It’s not only a win for the environment but also for the member council ratepayers who are now insulated from the ever-increasing cost of landfilling, due at least in part to the state’s rising landfill levy,” he said.

The consortium currently working through the pre-engineering and update of the site environmental approval. The project is scheduled to begin construction in Q3 2018.

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