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Renewable focus: ResourceCo
ResourceCo has appointed leading expert Henry Anning to its newly created energy arm to spearhead renewable energy solutions.
As more Australian businesses seek genuine alternative energy solutions, international alternative fuels leader ResourceCo has moved to provide further industry support.
Earlier this year, clean energy expert Henry Anning took on the newly created role of Chief Executive Officer of ResourceCo’s “specialised” energy arm.
Henry previously led the Clean Energy Finance Corporation’s (CEFC) bioenergy platform and oversaw the investment of more than $400 million in energy projects – worth a billion dollars in the sector. This included supporting ResourceCo’s vision to roll out and build new Processed Engineered Fuel (PEF) manufacturing plants Australia-wide, including its latest plant at Wetherill Park in Sydney.
He was also an Associate Director at Low Carbon Australia, where he focused on bioenergy sector finance and industry engagement.
Henry says it’s an exciting time to be joining ResourceCo, as the company’s waste-derived fuel provides a unique solution for the manufacturing sector.
“Businesses are needing low-cost, long-term renewable energy solutions fast as soaring gas and electricity prices are really hurting them. For many, gas prices have increased four-fold over the last five years,” he says.
Henry explains that there are a lot of manufacturers who are using natural gas, in particular, for heat, such as hot water, steam or hot air. He says manufacturers have expressed their frustration about the uncertainty surrounding gas prices, market volatility and short-term energy fixes.
“Manufacturers and other high energy users are wanting certainty on lower energy prices and ResourceCo is uniquely placed to provide a lower cost, renewable, long-term energy solution.”
In response to these market demands, ResourceCo is expanding its suite of 24 plants across Australia and South-East Asia by developing new energy plants with biomass boilers to use PEF. The product is manufactured mainly from timber waste materials but also includes cardboard, paper, textiles and plastics.
At its own cost, ResourceCo can install a waste-derived fuel biomass boiler between five to 40 megawatts, effectively combusting waste timber from construction, demolition, commercial and industrial sites. Henry says that this provides customers with over a 90 per cent renewable heat source as an alternative to gas and significantly reduces energy costs.
“We are targeting businesses who are using between 100 thousand gigajoules or a petajoule of natural gas. By setting up the infrastructure of the energy plant, owning and operating it for the customer, we’re taking away any responsibility for capital costs while demonstrating responsible environmental management.”
Subject to the approval process and depending on the scale of the new plant, ResourceCo estimates construction will take up to 18 months.
“It’s about us being a long-term energy partner, providing a fixed cost solution and allowing the manufacturer to focus on their core business,” Henry says.
“These businesses have invested hundreds of millions of dollars into their own facilities and need certainty about their energy costs as well as assurance they’re receiving a quality product.”
Henry says while there are other biomass feedstocks on the market, ResourceCo’s waste derived fuel is a fantastic environmental and business solution that is cost effective, simple and reliable.
ResourceCo’s proven track record as a leading provider of alternative waste fuels is demonstrated by its long-term partnerships with major companies such as Boral, Adelaide Brighton Cement, Suez and Cleanaway.
“We’ve been providing PEF to major industrial customers for more than 10 years and strong business-to-business relationships are critical and a top priority,” Henry says.
“We know where our PEF is going, that it’s being used properly, and has the full backing by the environmental regulators in each jurisdiction, both locally and overseas.”
ResourceCo only takes construction demolition and commercial industrial waste and deals directly with the customer.
Its business model is to ensure a strong chain of custody, environmental compliance and investment in local communities.
The company recycles more than 95 per cent of incoming materials while processing over two million tonnes of materials annually. Its alternative fuel complies with the requirements of the Australian Governments Clean Energy Regulator under the Emissions Reduction Fund.
“Heat is too often a forgotten energy in Australia, with electricity regularly being the focus of policy discussions to reduce emissions,” Henry says.
“PEF is a proven and successful technology, with hundreds of plants throughout Europe using waste-derived fuel for heat and electricity.”
He says that the waste-to-energy market is earmarked to become more sophisticated over the next five years, as the sector continues to experience significant growth.
“To achieve zero waste and carbon emissions is of course the ultimate goal and while this in reality is a long way off, major steps must be taken by the sector now to move towards long-term solutions.
“Future and consistent recognition of the different types of waste to energy available in the market is vital to show this is a much better solution than landfill.
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Veolia signs 25 year deal to operate WA WtE facility
Veolia has signed a $450 million 25-year operations and maintenance service agreement on a large-scale waste to energy facility in Kwinana, WA, capable of producing 36 megawatts of electricity – enough to power 50,000 homes.
The Clean Energy Finance Corporation (CEFC) will commit up to $90 million towards towards the $688 million and will be able to process 400,000 tonnes of household, commercial and industrial residual waste per year.
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- CEFC invests $30M into Visy Industries
- CEFC finance composting facility for Melbourne councils
- Phoenix names contractor for Kwinana WtE project
Operations and maintenance of the facility will commence in 2021. Veolia operates 61 thermal waste to energy facilities around the world.
Macquarie Capital and Phoenix Energy Australia are co-developing the Kwinana plant, with co-investment by the Dutch Infrastructure Fund (DIF). Infrastructure company Acciona has been appointed to design and construct the facility. The project has been approved by the WA Environmental Protection Authority.
It is expected to produce cost-competitive base load power by processing household waste from local councils and contribute to grid stability in WA’s South West Interconnected System.
Technology that has been previously used in Europe will be implemented in the plant, which is expected to reduce carbon dioxide emissions by 400,000 tonnes per year – the equivalent of taking 85,000 cars off the road.
The plant will use the Keppel Seghers grate technology, which has seen use in more than 100 waste to energy plants across 18 countries. Metals recovered in the process are then able to be recycled, with the facility producing an ash byproduct that is commonly used as road base or for construction.
CEFC’s funding is part of a $400 million debt syndicate that includes SMBC, Investec, Siemens, IFM Investors and Metrics Credit Partners. The Australian Renewable Energy Agency (ARENA) is contributing a further $23 million in grant funding.
Veolia Australia and New Zealand Managing Director and CEO Danny Conlon said the project is an exciting development for Veolia in Australia.
“Adding to Veolia’s existing infrastructure in NSW and QLD, where we generate enough electricity to power 35,000 homes per year from waste, the Kwinana Project is another example where we will extract value from waste materials, delivering a clean energy source,” Mr Conlon said.
At a time when Australian businesses and households are seeing energy shortages and rising costs, Veolia is proud to be working with innovative partners to help deliver new, environmentally sustainable energy from waste”.
ARENA CEO Darren Miller said the project provides a renewable energy solution for reducing waste going to landfill.
“The use of combustion grate technology is well established in Europe and North America but has not yet been deployed in Australia,” Mr Miller said.
“More than 23 million tonnes of municipal solid waste is produced annually in Australia and this project could help to divert non-recyclable waste from landfill and recover energy in the process.”
CEFC CEO Ian Learmonth said the landmark project was the CEFC’s largest investment in WA to date.
“Creating energy from waste is an exciting and practical way to reduce the amount of waste going to landfill, while also delivering cleaner low carbon electricity,” Mr Learmonth said.
“The average red lid wheelie bin contains enough waste to produce up to 14 per cent of a household’s weekly power needs. This investment is about harnessing that energy potential, while safely diverting waste from landfill.
“We are pleased to be working alongside Phoenix Energy Australia, Macquarie Capital and DIF in bringing this state-of-the art technology to Australia. We congratulate the Western Australian government and the participating councils in embracing this 21st century approach to waste management,” he said.
Macquarie Capital Executive Director Chris Voyce said the Kwinana plant is expected to employ around 800 workers, including apprentices, during its three-year construction phase, and some 60 operations staff on an ongoing basis.
“Macquarie Capital is pleased to be contributing to the supply of sustainable and secure renewable power to Australia’s overall energy mix,” Mr Voyce said.
“As an adviser to, investor in and developer of renewable energy projects around the world, we see waste-to-energy as an effective example of adaptive reuse: reducing the pressures on landfill by diverting it toward the generation of clean energy,” he said.
CEFC Energy from Waste lead Henry Anning said the CEFC is pleased to play a role in demonstrating the business case for large-scale waste to energy investments in Australia in the future.
“Australians produce almost three tonnes of waste per person per year. While the priority is always a strong focus on recycling and organic waste management, there is still a considerable amount of household waste from red-lidded bins ending up as landfill, where it produces a large amount of emissions,” Mr Anning said.
“Energy from waste investments such as the Kwinana plant are about creating new clean energy opportunities for Australia, while offering councils and households a practical and innovative way to manage waste. Just as importantly, they can significantly cut methane emissions produced by landfill.”
With the addition of the Kwinana facility, the CEFC has now made six large scale investments to reduce waste-related emissions.
CEFC invests $30M into Visy Industries
Packaging and resource recovery company Visy Industries plans to invest $30 million of Clean Energy Finance Corporation (CEFC) finance across a range of energy efficient, renewable and low-emissions technologies over the next four years.
Visy plans to use the funds to increase waste recycling and processing capabilities while also offsetting the impact of changes in the international recycling market.
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- CEFC finance composting facility for Melbourne
- Sacyr’s organics recycling plant: south-east Melbourne
- Cleanaway receives $90 million CEFC loan
CEFC’s finance is part of a pipeline of potential projects to increase Visy’s manufacturing capacity to recycle waste materials by 10 per cent and improve the energy efficiency of the company’s large-scale manufacturing operations.
Visy’s pipeline includes better processing and sorting technology to increase the amount of material which can be recycled as well as increased energy generation to offset grid energy needs.
The company currently recycles 1.2 million tonnes of paper and cardboard each year and expects to increase its capacity by 10 per cent as a result of the $30 million investment program.
The CEFC aims to increase its investments in waste-related projects as part of its goal to reduce Australia’s overall emissions.
CEFC CEO Ian Learmonth said Visy is a leader in recycling and the use of energy efficient and renewable energy technologies and that the CEFC was proud to work with the company to respond to the waste crisis.
“As a community, we need to reduce our overall waste as well as invest in more sustainable management of remaining waste. This includes extracting energy from non-recyclable waste to replace fossil fuels, as well as increasing our ability to recycle paper and packaging waste onshore,” Mr Learmonth said.
“As a major Australian manufacturer, Visy is also leading the way in investing in energy efficient equipment and technologies to help power its 24-hour operations. We see this as a model for other manufacturers grappling with high energy prices and commend Visy on its leadership.”
According to the International Energy Agency, Australia’s manufacturers are the most energy intensive in the world and accounted for around 40 per cent of natural gas consumption in 2014-15.
Visy Chairman Anthony Pratt said the company was pleased to partner with the CEFC to improve sustainability.
“Visy has pledged to invest $2 billion in Australian manufacturing to create jobs, increase efficiencies and boost sustainability,” Mr Pratt said.
CEFC Bioenergy Sector Lead Henry Anning said with the investment into Visy, it will be able to upgrade its existing infrastructure as well as invest in new equipment.
“We see clean energy technologies playing an increasingly important role in enabling Australian industry to reduce its energy intensity and better manage its energy-related operating costs,” he said.
“Visy is already a great example of this, meeting a part of its energy needs, including heat, through its existing biomass and energy from waste investments.
“The CEFC finance will allow Visy to further complement these energy sources with new investment to lift the overall energy efficiency of its operations. These are proven technologies that can be considered right across the manufacturing sector.”
Image: Henry Anning
CEFC finance composting facility for Melbourne councils
Organic waste from eight Melbourne councils will be sent to a new composting facility, to be built by international waste management company Sacyr Group.
The Clean Energy Finance Corporation (CEFC) will commit up to $35 million towards the new composting facility.
Related stories:
- ResourceCo and Cleanaway open Wetherill Park PEF plant
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The $65 million South Eastern Organics Processing Facility will be the most advanced of its type in Victoria and will produce approximately 50,000 tonnes of high grade compost each year.
The compost will be made from processed household garden and food waste from council kerbside green waste collections in Melbourne’s south-east, which will then be used on local parks and gardens.
Food and green waste makes up an estimated 42 per cent of landfill for Australia’s municipal and commercial waste streams.
The Melbourne councils include Bayside, Cardinia, Casey, Frankston, Glen Eira, Greater Dandenong, Kingston and Monash.
Sacyr expects the fully-enclosed, in-vessel aerobic composting and maturation plant will be operational by mid-2019. It will aim to operate for 15 years, with a potential five-year extension.
The new facility will have an annual processing capacity of 120,000 tonnes of waste each year, the equivalent of 12,000 truckloads of waste. It is expected to abate more than 65,000 tonnes of carbon dioxide equivalent emissions annually. This would cut the greenhouse gas emissions from landfill by 85 per cent if it were to be landfilled, which is equivalent to taking 13,900 cars off the road.
Sacyr Group has built 48 plants around the world and handles more than three million tonnes of waste each year. It currently operates in Australia through its subsidiary, Sacyr Water, which has built and operates the Binningup desalination plant.
The technology used in the plant has been developed over two decades, ensures plant storage reservoirs are completely closed, and uses efficient and reliable deodorisation systems.
Federal Government Environment Minister Josh Frydenberg said converting waste to compost can play a part in Australia’s long-term waste solutions.
“This facility alone, which will be the most advanced of its type in Victoria, can process around 12,000 truckloads of waste per year,” Mr Frydenberg said.
“It means food and organic waste produced by south east Melbourne residents will not end up in landfill and will instead produce high-grade compost for our gardens and parks.”
CEFC CEO Ian Learmonth said the corporation is looking across the economy to identify finance opportunities to reduce Australia’s emissions.
“We’re pleased to be making our first project investment to help councils and communities tackle emissions from their organic waste,” he said.
“When organic waste such as food and green waste ends up in landfill it breaks down and produces methane. With this technology, councils can avoid those emissions by turning their organic waste into reusable compost, while also reducing our unsustainable reliance on landfill as a waste disposal option.
“We strongly endorse the principle of avoiding and reducing waste at the source. Our finance is about effectively manage the remaining waste, so that it doesn’t end up as landfill and we make a meaningful difference to our greenhouse gas emissions,” Mr Learmonth said.
CEFC Bioenergy Sector lead Henry Anning said the CEFC finance model for the Melbourne project was an industry first, providing councils with access to a project financing structure that has rarely been leveraged across local government.
“Australia’s waste sector is facing enormous challenges, because of the growing amount of waste we produce as well as increasing community concerns about the way we handle that waste. This new Melbourne facility provides us with a practical and proven way to turn organic waste into a reusable commodity at the same time as avoiding harmful emissions,” Mr Anning said.
“We expect to see more councils and communities consider innovative ways to manage all forms of waste. This innovative project finance model offers opportunities for other groups of councils considering investing in substantial waste management infrastructure to reduce landfill waste.”
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 to enter into JV with ResourceCo
- ResourceCo’s expansion into alternative fuels
- ResourceCo Material Solutions takes part in WestConnex
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.
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.