Australian Paper Energy from Waste Facility
Preferred bidder announced
Greenfield (construction) or brownfield (government asset divestment) projects needed or likely to occur within the next five years, but is not formally proposed by a state, territory or major local government.
The project or divestment is supported by a state, territory or major local government, is subject to studies or other processes (such as pre-feasibility or scoping studies or business case development), and is likely to proceed to formal announcement.
The project has a firm commitment and timeline from a state, territory or major local government, but has not yet entered the market.
The project or transaction is under procurement (such as a call for Expressions of Interest, requests for tender, or another offer to the market).
Preferred bidder announced
A preferred bidder has been selected and is in exclusive negotiations.
Projects that have progressed to contractual close remain on ANZIP for 12 months.
ANZIP is focused only on major infrastructure activity, above the following thresholds:
Construction projects: > AUD$300m
Investable greenfield & brownfield: > AUD$100m
All greenfield and brownfield projects and divestments: > NZD $100 million
Australian Paper, located in the Latrobe Valley, has proposed a 225-megawatt thermal EfW facility in partnership with SUEZ. Australian Paper is the largest industrial user of natural gas and coal-fired electricity in Victoria, making it significantly exposed to surges in energy prices and uncertainty of supply.
The proposed $600 million facility will have the capacity to process up to 650,000 tonnes of municipal solid waste (80 per cent) and commercial and industrial waste (20 per cent). This is expected to reduce capacity pressures on existing landfill sites in Gippsland and Melbourne.
The $7.5 million feasibility study was co-funded by the Federal and Victorian Governments.
2020: Australian Paper and SUEZ are seeking to finalise waste supply arrangements for the project by 2020
2022: Construction expected to commence
2025: Facility due to open
Jun 2019: Project was reissued a works approval by the Victorian Environmental Protection Authority, following an appeal of the original works approval by the Victorian Civil & Administrative Tribunal.
Feb 2019: Feasibility study completed, partnership between Australian Paper and SUEZ announced.
Nov 2018: Original works approval granted by Victorian EPA.
The EfW facility will provide an alternative baseload energy source for Australian Paper’s Maryvale Mill, through the production of steam and electricity. The facility will interchange between the two outputs during operation, providing improved flexibility and efficiency.
Australian Paper estimates that 96 per cent of waste material received will be used as energy or repurposed for road and building products, leaving only four per cent for landfill disposal. Excess electricity generated will be sent to the grid, increasing supply in the electricity market.
Last reviewed: 19/06/2020