A new force in Australian waste and resource recovery is emerging – one that’s ready to challenge conventional approaches and drive meaningful change.
With robust global backing and decades of international operational expertise, Valoriza is not just entering the organics recycling space – it’s positioning itself as a catalyst for a sustainable circular economy in Australia’s waste services sector.
Owned by Spain’s Valoriza Servicios Medioambientales, a major waste and resource recovery player in Europe, Valoriza’s facility in Dandenong South, Victoria, is a significant asset in the region’s waste infrastructure.
The in-vessel Food Organics and Garden Organics (FOGO) treatment facility came online in 2019 and continues to deliver end-to-end FOGO composting services to the southeast councils in Melbourne, where the facility team receive, process and provide a quality-assured product into local markets for value adding and beneficial reuse.
A pivotal moment in Valoriza’s Australian strategy came in late 2023, when its Spanish parent company was acquired from Sacyr by global investment firm Morgan Stanley Infrastructure Partners (MSIP). This acquisition sharpened the group’s focus on the waste services sector and injected significant financial strength into its operations. Valoriza’s vertically integrated business in Spain spans collections, recycling, and advanced thermal and biological treatments.
Michael Allaway, Valoriza Country Head for Australia, says the MSIP backing and global know-how of the Spanish business will be a strong catalyst to support growth in Australia.
“It gives us a lot more financial horsepower behind the operations,” he says. “In addition, there’s a broad range of innovative technology within the Spanish business that we can access and adapt for the Australian market.
“Spain’s waste treatment infrastructure evolution is ahead of Australia’s, so we benefit from proven methods and avoid early-stage pitfalls.”
Since the change in ownership, the Australian team has been focused on optimising the Victorian FOGO facility. The optimisation program includes a $3.6 million investment plan to be rolled out by the end of 2026, as well as enhancing operating practices and strategically repositioning the facility in the Melbourne organics recycling market.
Michael says the goal is to move beyond simply processing FOGO waste and instead focus on delivering quality-assured and consistent compost and beneficial reuse-related products to cater for the local and regional market.
The facility currently produces an AS 4454-certified composted product primarily used by market gardeners, farmers and soil yards and is working with partners to develop sustainable product and beneficial reuse solutions for the more complicated oversize materials.
While FOGO waste contamination remains a key area of focus, Michael says Valoriza’s council customers are significantly reducing this complexity through proactive engagement within their local communities to influence improved recycling behaviours.
“The Dandenong facility is designed to remove as much contamination as possible before composting begins,” Michael says. “Our quality assurance regime is stringent because we’re dealing with highly variable input.”
The facility, which is licensed for 120,000 tonnes a year, currently processes about 85,000 tonnes of FOGO and commercial food.
Valoriza has empowered the facility’s leadership team to drive the improvement and optimisation mandate from within.
Victoria’s maturity in FOGO processing – dating back over a decade – provides a strong foundation for Valoriza’s national growth strategy. The company aims to leverage operational insights from Dandenong to support emerging FOGO initiatives in New South Wales, South East Queensland, and Western Australia, as they evolve their own FOGO transition journeys.
But the biggest opportunity for value lies in closing the loop entirely by working with the councils Valoriza contracts with.
“We are starting to engage with council customers about the changes we’re making. We want to bring them into our business to understand how our facility works and how it interfaces with their requirements,” Michael says. “
An example is the explorative conversations we’re beginning to have with some council customers about working together in the circular procurement space, which is progressing well. We’re particularly focused on developing value-added products that can be reintegrated into local communities. Partnering with local soil blending operators and councils is key to achieving this.”
One of Valoriza’s five-year goals is to become a national leading vertically integrated organics company, an ambition that includes actively looking at acquiring complementary businesses across the country.
Valoriza envisions a national waste industry committed to sustainable transformation.
“There’s an exciting opportunity in the Australian market,” Michael says. “There’s a lot of change happening in the waste sector, as well as lots of challenges, and it’s a very good time to be positioning Valoriza to move forward in this industry.
“We thrive in complexity and strive to unite stakeholders, who don’t typically collaborate, to deliver real, lasting change.”
For more information, visit: www.valoriza.au
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