Sphere Quarterly Newsletter

Quarter 2 2022 Highlights | July 2022

Resource recovery snapshot

Victoria’s new waste authority commences operation: Victoria’s new waste authority, Recycling Victoria, commenced operations on 01-Jul. Responsible for providing strategic leadership for the State’s waste and recycling sector, Recycling Victoria has been provided with distinct functions and powers, including to regulate waste and recycling services, oversee the container deposit scheme, gather data and report on the state of the market, and support the development of Victoria’s circular economy.

Queensland unveils its proposed five-year roadmap on single-use plastics: the Queensland Government announced the proposed five-year roadmap (2022-2026) for action on single-use plastic items on 01-Jul. The roadmap outlines future bans on problematic plastic items, explores options other than bans for further consideration and additional support for community-led initiatives.

CEFC makes its first e-waste investment: the Clean Energy Finance Corporation announced the commitment of $7.5M to Scipher Technologies as part of the Series B capital raise on 27-May. Representing the first e-waste investment for CEFC, the funding will be matched by the Australian Business Growth Fund, a public-private partnership between the Commonwealth Government and six banks (CBA, Westpac, Macquarie, NAB, HSBC, ANZ), to support small and medium Australian businesses pursue growth initiatives.

Tasmania introduces landfill levy: Tasmania’s state-wide landfill levy came into effect on 01-Jul, with an initial flat rate of $20 per tonne applied for the first two-year period. The levy will increase to $40 per tonne after the initial two-year period, with a further increase to $60 per tonne after four years of implementation. The Northern Territory is now Australia’s only jurisdiction without a landfill levy in place.

BINGO acquires United Waste Services: BINGO Industries announced the acquisition of United Waste Services on 01-Jul, providing entry to the Queensland market. Published strategic rationale for the acquisition include: complementary customer base, capable management team, post-collection assets in key locations and opportunity to expand BINGO’s existing footprint along the east coast of Australia.

Cleanaway announces EfW projects in Victoria and Queensland: Cleanaway Waste Management Limited (ASX: CWY) announced growth plans to develop two Energy from Waste projects in Wollert (Victoria) and South East Queensland (site location to be confirmed). Company estimates provided at the June Investor Day suggest both facilities will be wholly owned by Cleanaway, with feedstock throughput estimates of ~400 ktpa and ~500 ktpa respectively.

Infrastructure NSW publishes the State Infrastructure Strategy 2022-42 (resource recovery): the New South Wales State Infrastructure Strategy 2022-242 was released by Government in May-22. Sphere previously shared a summary of the key recommendation in relation to the resource recovery sector (found here).

Qantas and Airbus announce Australian Sustainable Aviation Fuel Partnership: the Qantas Group and Airbus announced the execution of the Australian Sustainable Aviation Fuel Partnership in June-22. The partnership has an initial term of 5-years with the objective of investing in locally developed and produced SAF projects and feedstock initiatives. Candidate projects will have to be commercially viable and meet defined environmental sustainability criteria to be eligible for funding.

DELWP announces successful grant funding recipients: Victoria’s Minister for Energy, Environment and Climate Change Lily D’Ambrosio announced the successful recipients of grant funding from multiple Sustainability Victoria programs in Jun-22, including:

  • Recycling Victoria Research and Development Fund - Organic: six projects received $1.6M to boost the value of recycled organics and support agriculture while also looking at ways to improve soil quality, boost crop production and develop recycled organics end markets (22-Jun)

  • Recycling Victoria Councils Fund: thirty councils will share $0.63M to investigate projects that divert waste from landfill, boost local circular economies and reduce costs by uncovering new methods for recycling materials (07-Jun).

Circular Solar grant funding recipients announced: the NSW Environment Protection Authority announced the five successful projects receiving a total of ~$7.4M funding from Round two of the Circular Solar grant program on 27-Jun. Recipients include: PV Industries ($2.3M), Tes-Amm Australia ($1.9M), Scipher Technologies ($1.7M), Blue Tribe ($0.4M) and The University of New South Wales ($1M).

Wallerawang Power Station EfW proposal rejected by the State: the proposed Energy from Waste project at the Old Wallerawang Power Station has been denied further consideration by the NSW Government. The Deputy Premier Paul Toole announced, in a May-22 statement, “I can confirm that the EPA has reviewed all submissions received in relation to the Energy from Waste and has now informed both Lithgow City Council and the proponents that the Wallerawang Business Park will not be included in the plan and therefore, unable to proceed”.

Water snapshot

Yarra Valley Water enters long-term strategic partnerships: Yarra Valley Water announced two Engineering Services Partnerships with Jacobs and Ripple (a Beca/Stantec joint venture) in May-22. The partners will support YVW deliver the capital works program across water, sewer, treatment and non-drinking water services.

New renewable-powered desalination plant planned for Perth: the Western Australian Government announced the selection of Alkimos as the preferred location for the State’s next major water source; the Alkimos Seawater Desalination Plant. The 100 billion litres-a-year facility is expected to be delivered in two phases, with the first 50 billion-litre stage completed by 2028.

NT infrastructure strategy 2022, and plan and pipeline 2022: the Northern Territory Infrastructure Strategy 2022 to 2030, and Infrastructure Plan and Pipeline 2022 were both released by Government in Jun-22. The Darwin Regional Water Supply Program including Manton Dam Return to Service and Adelaide River Off-stream Water Storage were both identified as key water infrastructure investments that support the visions of the strategy.

WSSA releases updated industry climate change position: the Water Services Association of Australia released an updated version of the Urban Water Industry Climate Change Position in May-22. The updated Position Paper follows the commitment of 13 Australian and 1 New Zealand water utilities joining the UN-led Race to Zero campaign in late 2021.

Infrastructure NSW publishes the State Infrastructure Strategy 2022-42 (water): the New South Wales State Infrastructure Strategy 2022-242 was released by Government in May-22. Sphere previously shared a summary of the key recommendations in relation to the water sector (found here).

Hydrogen snapshot

Tri-state collaboration on renewable hydrogen refuelling network: the New South Wales, Victoria and Queensland Governments announced the signing of a tri-state collaboration on a renewable hydrogen refuelling network for heavy transport and logistics along Australia's eastern seaboard in Mar-22. Under the Memorandum of Understanding, the States have agreed to collaborate on the development of the east coast hydrogen refuelling network by 2026. The work is scheduled to commence with Victoria and New South Wales each providing $10M in funding to develop at least four renewable hydrogen refuelling stations between Sydney and Melbourne.

BP acquires equity stake in the Asian Renewable Energy Hub: BP announced the acquisition of a 40.5% equity stake in and to become operator of the Asian Renewable Energy Hub on 15-Jun. Based in the Pilbara region (Western Australia), the project plans to develop onshore wind and solar power generation in multiple phases to a total generating capacity of up to 26 gigawatts. At full capacity, AREH is expected to be capable of producing c. 1.6 million tonnes of green hydrogen or 9 million tonnes of green ammonia, per annum.

South Australia issues hydrogen jobs plan market sounding: the South Australian Government released a market sounding in late May-22, calling for design and delivery concepts from the market for the construction of its new hydrogen facility in Whyalla. Submissions will be accepted until 15 July 2022.

Infinite Green Energy submits the Arrowsmith Project to the EPA: Infinite Green Energy (formerly Infinite Blue Energy) made further progress with the Arrowsmith Hydrogen Project, making a submission to the Western Australian Environmental Protection Authority in Jun-22. The outcome of the proposal referral is yet to be published by the EPA.

Commonwealth Government grant funding announcements: the Liberal-National Coalition and Labour Governments both announced a range of significant funding commitments to support the development of hydrogen projects under the 2022 Federal election caretaker arrangements. Whilst many of the existing government funding allocations remain under review post-election, we expect the upcoming Federal Budget, and the coming term from the Albanese Government to have a strong focus on hydrogen to support Australia’s transition to a net zero economy.