Sphere Quarterly Newsletter

Quarter 3 2022 Highlights | October 2022

Resource recovery snapshot

Waste and resource recovery sector activities from Q3 2022.

VIC Government passes Circular Economy Bill: the Environment Legislation Amendment (Circular Economy and Other Matters) Bill 2022 was passed by the Victorian Parliament. The Act establishes a thermal Waste to Energy (WtE) scheme that caps the processing of “permitted waste”; introduces new enforcement powers for Recycling Victoria; and makes it a requirement for Recycling Victoria to prepare an annual market report and a long-term infrastructure plan. 

Commonwealth Government awards $13M in funding to develop organic infrastructure in the ACT: the Commonwealth and ACT Governments jointly announced the additional contribution of $13M in grant funding from the Food Waste for Healthy Soils Fund towards the development of a new large-scale composting facility in the Australian Capital Territory (processing capacity of up to 50 ktpa), as well as supporting the construction of another Material Recovery Facility (MRF).

Cleanaway acquires Global Renewables Holdings: Cleanaway Waste Management (Cleanaway) announced the acquisition of 100% interest in Global Renewables Holdings Pty Ltd (GRL) from Palisade Investment Partners for $168.5M. Cleanaway proposes to convert GRL’s Eastern Creek UR-3R Facility to process source separated Food Organics and Garden Organics (FOGO) waste - a change from current operations that only processes residual waste. 

Outcomes published from the independent review of the NSW EPA’s Resource Recovery Framework: the NSW Environment Protection Authority (EPA) announced the publication of Dr Cathy Wilkinson’s (former head of the EPA Victoria) Independent Review Report of the Resource Recovery Framework. The review, commissioned in Nov-21, delivered 22 recommendations to refine and strengthen the framework, which sets the regulatory requirements that apply when recovering and reusing waste in New South Wales. 

NSW Government allocates $46M towards FOGO grants program for local councils: the NSW Government announced a new grant funding program for local councils to divert organic waste from landfill. Grants will be open to applications twice a year for four years (funding being available on a per household basis), with a total of $69M allocated by the State to 2027.  Applications for the first round of grants close on 16-Nov.

Maryvale WtE bottom ash recycling facility approved by EPA Victoria: the consortia responsible for developing the proposed Maryvale WtE Facility announced that EPA Victoria approved the adjoining $8M bottom ash recycling facility. The first of its kind facility in Victoria, will have a bottom ash recycling facility attached to it that will process the ash waste to recover a range of metals as well as produce an aggregate to be used in road construction. The facility is estimated to cost $8M. 

Orora commences operations of $25M glass beneficiation plan in SA: Orora Ltd announced the commencement of operations of a new $25M glass beneficiation plant in South Australia. With a planned throughput capacity of up to 150 ktpa , the project received $8M in grant funding from the Commonwealth and SA Governments as part of the Recycling Modernisation Fund.

Shortlisted consortia expected to submit final bids for Parkes Special Activation Precinct MRF and WtE project: the Parkes Shire Council announced that three consortia had been shortlisted by the NSW Government to submit proposals to deliver a WtE facility as part of the Parkes Special Activation Precinct. Final bids are reportedly due in Oct-22, with a preferred proponent expected to be selected by year end. 

BMI Group commences sale process: property development and resource recovery company, BMI Group, reportedly commenced a sale process for the business, with PwC appointed as transaction advisor. 

New FOGO facility planned for Greater Bendigo: the Greater Bendigo City Council announced its intent to enter into a service agreement with a private sector participant, Western Composting Technology (WCT), for the development and operations of a new FOGO processing and recirculation facility in Huntly. The new facility is expected to have a processing capacity of 30 ktpa and remains subject to the State’s planning and regulatory approvals processes.

EPA Victoria reviews Advanced Recycling Victoria’s development licence application: the community consultation period for Advanced Recycling Victoria’s (ARV’s) development licence closed in Sep-22. The proposal consists of developing a plastic resource recovery plant in Altona, to convert end-of-life plastics into liquid and gaseous hydrocarbon products. The development licence application presently remains under consideration by EPA Victoria, with a decision expected in Oct-22.

Water snapshot

Water sector activities from Q3 2022.

NSW Government releases the Greater Sydney Water Strategy: the NSW Government launched the Greater Sydney Water Strategy (GSWS). The GSWS outlines the proposed direction for delivering sustainable and resilient water services to Greater Sydney, including the Illawarra and Blue Mountains, for the next 20 to 40 years.

QLD Government awards three contracts on the Paradise Dam Improvement Project: the QLD Government announced the awarding of the design, geotechnical and environmental services contracts for the Paradise Dam Improvement Project. The successful tenderers include: GHD (preparation of the reference design), Jacobs (geotechnical investigations) and Epic Environmental (preparation of the environmental impact assessment and environment/planning approvals). 

Sydney Water awards advanced wastewater recycling contract: Sydney Water awarded the contract for the construction and operation of the Upper South Creek Advanced Water Recycling Plant (AWRC) to a consortium of GHD and Jacobs (engineering and design), John Holland (design and construct) and TRILITY (operations and maintenance). With operations scheduled to commence in 2026, the facility is expected to treat up to 35 ML of wastewater a day through a combination of biological treatment and reverse osmosis.

NSW Government declares water infrastructure projects as Critical State Significant Infrastructure: the NSW Government declared the New Dungowan Dam and Pipeline and Warragamba Dam Wall Raise projects as Critical State Significant Infrastructure (CSSI) given their respective importance to improving regional water resilience and improving economic and social outcomes for the surrounding communities. Both projects presently remain subject to the State’s planning and approvals pathway and further assessments undertaken in accordance with the Environment Planning and Assessment Act

QLD Government plans two new pumped hydro schemes: the QLD Government announced two new proposed pumped hydro schemes at Pioneer/Burdekin and Borumba Dam by 2035 as part of the State’s Energy and Jobs Plan. The proposed Pumped Hydro Energy Storage (PHES) assets could deliver up to 7 GW of long duration storage, with the State establishing a new publicly owned entity, ‘Queensland Hydro’, to deliver the schemes.

NSW Government awards $45M in funding to accelerate pumped hydro: the NSW Government announced $44.8M in grant funding had been awarded to five projects under the NSW Pumped Hydro Recoverable Grants Program. New South Wales has a target of at least 2 GW of new long duration storage by 2030, with successful grant recipients including: EnergyAustralia Development, Oven Mountain Pumped Hydro Energy Storage, Origin Energy, ATCO Australia Pumped Hydro and Muswellbrook Pumped Hydro (AGL Energy and Idemitsu Australia).

YVW launches climate resilience plan: Yarra Valley Water (YVW) launched a new five-year climate resilience plan. The plan is responsible for outlining the water utility’s actions to mitigate and adapt to the impacts of climate change, and plays an important role in supporting YVW’s 2030 Strategy. 

WA Government’s WaterSmart Farms initiative allocates $0.4M to test desalination technology: the WA Government announced the allocation of $0.4M to support the development of four desalination units to test desalination technology and brine disposal for on-farm application. The initiative builds upon prior investigations on the feasibility of on-farm desalination units and is complementary to the State’s $1.5M WaterSmart Farms project.

Hydrogen snapshot

Hydrogen sector activities from Q3 2022.

ARENA conditionally approves $47.5M for the Yuri Renewable Hydrogen to Ammonia Project: the Australian Renewable Energy Agency (ARENA) announced the conditional approval of $47.5M in grant funding towards ENGIE’s renewable hydrogen and ammonia project near Karratha in Western Australia. A positive final investment decision was made by ENGIE and Yara Pilbara Fertilizer in Sep-22, with the project consisting of a 10 MW electrolyser, 18 MW of solar photovoltaics and 8 MW battery storage system.

CSIRO launches virtual Hydrogen Knowledge Centre: the Commonwealth Scientific and Industrial Research Organisation (CSIRO) announced the launch of the Hydrogen Knowledge Centre. The Knowledge Centre seeks to provide frequent updates on sector policies, projects, research and resources, and has been designed to foster collaboration between the rapidly growing hydrogen industry, government and R&D ecosystems.

YVW launches green hydrogen plant: YVW announced the receipt of $11.9M in funding from the VIC Government’s Energy Innovation Fund in support of developing a permanent green hydrogen facility at the Aurora Treatment Plant. Proceeding to the larger-scale facility remains subject to the results of the current pilot project.

ARENA announces $13.7M to support the FEED study for the Gibson Island Ammonia Facility: ARENA announced the awarding of $13.7M in grant funding to support the preparation of a $38M Front-End Engineering and Design (FEED) study at Brisbane’s Gibson Island. The infrastructure proposal consists of the conversion of Incitec Pivot Limited’s (IPL’s) Gibson Island ammonia facility to run on green hydrogen. The FEED phase, being undertaken by a consortium consisting of IPL and Fortescue Future Industries (FFI), is expected to cost approximately $38M with final investment decision target date of 2023.

Hysata raises $42.5M from its Series A funding round: the Clean Energy Finance Corporation (CEFC) announced a further $10M investment in local advanced electrolyser technology company,  Hysata, as part of its Series A funding round. A total of $42.5M was raised from the oversubscribed funding round, with participation from a diverse breadth of local and international investors including Kiko Ventures, IP Group Australia, Vestas Ventures, Hostplus and BlueScope (via its ventures arm BlueScopeX TM). 

WA Government commits $10M for the @H2Perth hydrogen project: the WA Government announced a $10M grant funding commitment to Woodside Energy’s hydrogen refueller @H2Perth project. The proposed project, to be located in the Rockingham Industry Zone, has a target operations date of H2 2024 and will consist of a green hydrogen production, storage and refuelling facility that supports the early adoption of hydrogen vehicles by BGC and Centurion, both of of which are collaborating with Woodside Energy on the proposal.

AGL and FFI to undertake an expanded feasibility study on hydrogen development at the Hunter Energy Hub: AGL Energy Limited (AGL) announced the commencement of an expanded feasibility study to explore the development of green hydrogen and ammonia production facility at the Hunter Energy Hub. Technical consultant, GHD, is undertaking the study on behalf of AGL as the hub provider and FFI as the exclusive producer of green hydrogen at the proposed project site.

Government and public sector snapshot

Government and public sector activities from Q3 2022.

NSW Government releases updated PPP Policy and Guidelines: NSW Treasury released an updated set of policy and guidelines for the procurement of infrastructure and associated services through a Public Private Partnerships (PPP) by any NSW Government agency, including State Owned Corporations. The new guidelines are an update to the 2017 version, with the key drivers of change including:

  • enhancements to the State’s approach to the preliminary assessment of projects for PPP suitability, incorporating a procurement options analysis in parallel with a strategic business case

  • changes to legislation affecting the approval of government funding with respect to PPPs - updating for the Government Sector Finance Act 2018

  • new accounting standard AASB 1059.

NSW Government releases discussion paper on decarbonising infrastructure delivery for industry comment: Infrastructure NSW released a discussion paper around the key actions that need to be undertaken by government and industry to achieve a net zero construction industry. The guiding principles outlined in the paper seek to decarbonise the delivery of public infrastructure across the planning, design and construction phases.

QLD Government releases the Queensland Energy and Jobs Plan: the QLD Government released a ten year Energy and Jobs Plan, outlining several key renewables targets and actions, to “deliver clean, reliable and affordable energy for Queenslanders”. The plan sets a revised renewable energy target of 70% by 2032 and 80% by 2035, proposes the world’s largest PHES projects and the introduction of the ‘Queensland SuperGrid’.

Sphere at a glance

Sphere activities and updates from Q3 2022.

Sphere Infrastructure at Australasian Waste and Recycling Expo: Boyd Russell, in partnership with SOILCO’s Charlie Emery, presented at the Australasian Waste and Recycling Expo in August. Audience members were provided with an overview of the key commercial and technical challenges associated with procuring organic waste infrastructure. The presentation is available here.

Sphere partners with AORA as a corporate sponsor: Sphere recently reached agreement with the Australian Organics Recycling Association (AORA) to become a 2022-23 corporate sponsor. We look forward to working closely alongside AORA and its members to promote sustainable outcomes across Australia’s organic recovery and recycling industry.