technology

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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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.

Pictured: Henry Anning

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.

 

Community comments called for Australian Paper WtE facility

EPA Victoria has called for further community consultation on Australian Paper’s proposal to develop a large-scale waste to energy facility.

The company has provided the EPA with a health impact assessment to support its application to develop the facility within the boundaries of its site in Maryvale, Latrobe Valley.

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The proposed plant would generate both steam and electricity which can be directly in the paper mill or exported to the grid. It would replace two gas-fired boilers and would produce around 30 megawatts of electricity and 150 tonnes of steam per hour.

The EPA’s assessment of the applications will consider issues such as best practice technology, energy efficiency and greenhouse gas emissions, waste fuel composition, compliance with waste hierarchy, potential risks to human health and the environment from air, noise, disposal of fly ash, wastewater treatment and operational contingencies.

It follows a community public meeting held earlier in July, which found there was significant support for the proposals, with many submitters commenting the technology is already operating safely overseas, there are environmental benefits of less waste going to landfill and economic benefits of local job creation.

EPA Development Assessments Director Tim Faragher said the works approval application was originally open for public comment in June and EPA received 115 submissions.

“EPA also ran a community conference in July to hear concerns from those that made submissions. This further consultation period allows interested community members to make further comments on the new information that Australian Paper has submitted,” Mr Faragher said.

When making a final determination, the EPA will also consider all public submissions and the outcomes of the community conference.

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’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

BP licenses new waste to energy technology for biojet fuel

Biojet fuel company Fulcrum plans to open a waste to energy facility in the US that will convert municipal waste into a low carbon, renewable jet fuel.

Biojet fuel company Fulcrum plans to open a waste to energy facility in the US that will convert municipal waste into a low carbon, renewable jet fuel.

The facility will use research developed by oil and gas company BP and chemical company Johnson Matthey (JM), which convert synthesis gas generated from municipal solid waste into long-chain hydrocarbon molecules that make up diesel and jet fuels.

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Fulcrum has secured the license to the technology and expects to convert 159,000 tonnes of municipal waste into 41.6 million litres of fuel each year, the equivalent of more than 180 return flights between London and New York.

BP’s head of group research Angelo Amorelli said BP first became interested in the technology, called Fischer-Tropsch (FT), in the 1980s while looking to turn gas into liquid fuel.

“The breakthrough came five or so years ago, when we started to explore the potential for our FT process to turn biomass into fuels,” Mr Amorelli said.

He explains that JM redesigned the reactors which looked like baked beans cans filled with the catalyst, creating ‘cans tech’.

”BP then changed the recipe for the catalyst and, by combining that with the’ baked beans’ reactors, we trebled the productivity and halved the cost of building the technology compared to traditional FT reactors,” he said.

Image Credit: BP

REMONDIS intends to develop $400M QLD waste to energy facility

REMONDIS Australia has announced its intention to develop a $400 million waste to energy (WtE) facility at its Swanbank landfill in Queensland.

The company has advised the state government that it will make an application to develop the recovered energy through the State’s Coordinated Project process, with the project expected to begin construction in 2020.

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The proposed plant aims to generate 50 megawatts of baseload electricity for Queensland households and business by redirected 300,000 and 500,000 tonnes of waste from landfill per year. This energy would be able to power 50,000 average homes and be available every day of the year.

REMONDIS Group has operated and built WtE plants for 24 years and operates 52 facilities which recover more than 4.2 million tonnes of waste per year in Europe.

REMONDIS Australia General Manager QLD Operations and Business Development Bret Collins said the WtE proposal does not rely on additional waste streams coming to the Swanbank site – instead it will divert existing waste streams to a beneficial use.

“REMONDIS has been encouraged by recent comments from governments across Australia that WtE technology could provide some relief to the challenges facing the waste management and recycling industry,” Mr Collins said.

“There is an opportunity for Australia to benefit from REMONDIS’ global experience, and other successful European and UK facilities, and incorporate waste to energy as part of the solution to sustainable, best practice waste management.

“Adopting WtE technology will ensure that wastes with recoverable value are not sent to landfill and, instead, are put to beneficial use,” he said.

Mr Collins said that while Australians may not be familiar with WtE technology, it is used throughout Europe and considered a tried and trusted contributor to best practice waste management and energy generation.

“WtE plants are constructed to the strictest European Union environment, emission and health standards and this is the technology we would bring to Australia,” Mr Collins said.

“There are hundreds of WtE plants throughout Europe, the USA and Asia, and many are part of the fabric of suburbs and communities – there are WtE plants in Paris, London, Copenhagen, Cologne, Zurich, Vienna, Palm Beach and Singapore, just to name a few.”

Infrastructure and Planning Minister Cameron Dick welcomed the news and said it establishes Queensland as a major player in the waste‑to‑energy market.

“The introduction of our government’s waste levy provides a real incentive for projects like this, building a new industry as an alternative to landfill,” Mr Dick said.

“This project could create up to 200 jobs during construction and some 70 jobs during operations.”

Mr Dick said REMONDIS Australia is expected to submit an application to Queensland’s independent Coordinator-General to declare the project a ‘coordinated project’.

“If the Coordinator-General decides to declare this project a coordinated project it will help streamline approvals and fast-track delivery of this significant project,” he said.

“A coordinated project approach also means that all the potential impacts and benefits of the project are considered in an integrated and comprehensive manner.”

Tyre pyrolysis and gasification report to inform industry

To inform the industry on the use of tyres in thermal processing plants, Tyre Stewardship Australia (TSA) has released a report into the effectiveness of both pyrolysis and gasification.

The Tyre Pyrolysis and Gasification Technologies – A brief Guide for Government and Industry report looks at the global history of operating plants and considers the economic and end-product market factors that are critical to the commercial viability of recycling technologies in the Australian market.

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High temperature thermal processing can create oil, synthetic gas, carbon black and steel, while also providing a way of handling a waste stream that can have potential environmental or health problems if stockpiled.

TSA Market Development Manager Liam O’Keefe said the motivation of the guide was to provide the industry thought leadership on both emerging technologies as possible recycling solutions and to better inform government and businesses considering investment in such technologies.

“Obviously, TSA is interested in any technology that can sensitively recycle almost 100% of a waste tyre, but we must be aware of the prevailing market conditions, investment costs and competitive pressures that play a role in establishing the economic sustainability of such projects,” Mr O’Keefe said.

“We believe the guide, by providing a high level of consultation, analysis and technical and economic detail, will be an aid to decision making around proposed facilities.

“No one technology will meet the waste tyre environmental challenge on its own. The best result with such immense global resource recovery and management challenges usually comes from a combination of options, offering the flexibility to adjust to future conditions and developing market demands.”

The report can be downloaded here, with a full report on thermal tyre processing technologies by request from TSA.

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