Waste as an energy source - SEMAWP

Nine councils across the south east of Melbourne have established a company called South East Metropolitan Advanced Waste Processing (SEMAWP) Pty Ltd to work together to deliver an advanced waste processing alternative to landfill. SEMAWP is leading the procurement process.

By forming a single entity, the councils strengthen their influence on the economic, environmental and social outcomes of the project.

SEMAWP is governed by a constitution and reports to a board of management.

Each participating council is bound by a shareholders’ agreement and has an equal share in SEMAWP. Having an equal share means each council has an equal say on how the contract is managed regardless of the size of the Council and amount of household rubbish being supplied to a facility.

SEMAWP exists only to manage the Waste Supply Agreement for the advanced waste processing facility and cannot make decisions on other waste or council matters.

The Councils involved are:

• Bayside City Council
• Cardinia Shire Council
• City of Casey
• City of Greater Dandenong
• Frankston City Council
• Kingston City Council
• Knox City Council
• Whitehorse City Council
• Yarra Ranges Shire Council

Landfills are rapidly filling up, with no more planned to be built. Household waste in Melbourne’s south east is projected to increase by 40 per cent by 2046.

For many councils in the south east, the closest landfill in Hallam is expected to close in the coming years.

Advanced waste processing solutions have great potential as part of a total approach to managing the waste we produce. Alongside recycling, and separating green and food waste for composting, advanced waste processing is a smarter solution for household waste than burying it in the ground.

Initiatives to increase recycling and composting of green organic waste will still be important. The advanced waste processing facility will only process material that cannot otherwise be recycled.

In July 2024, SEMAWP entered into a Waste Supply Agreement for an advanced waste processing facility located in Maryvale to deliver a smarter solution than landfill for household waste in Melbourne’s south east.

The Waste Supply Agreement is between SEMAWP, Veolia Australia and New Zealand, Opal Australian Paper, and Masdar Tribe Australia (together known as Maryvale EfW Project Co Pty Ltd).

The Maryvale Energy from Waste (EfW) facility will be adjacent to the existing Opal Australian Paper Maryvale Mill, and the paper mill will utilise the combined heat and power from the EfW facility.

The Maryvale EfW Facility is the most progressed facility in Victoria, having received a Development Licence, Planning Permit and Waste to Energy Licence.

The Maryvale EfW Facility has already obtained a social licence to operate and has the support of the local community.

The solution involves council waste being delivered to a transfer station planned for construction in Melbourne’s south east, where it will be prepared for bulk haulage and transferred to the Maryvale EfW Facility for processing and energy and resource recovery.

At least 95% of non-recyclable household waste from nine councils in Melbourne’s south east will be diverted from landfill, reducing greenhouse gas emissions, creating investment and employment and preserving land for better uses than landfill.

By diverting waste from landfill and using it to create energy, the facility will significantly reduce greenhouse gas (GHG) emissions. For each tonne of the councils waste diverted from landfill, 0.8 tonnes of GHG emissions will be saved.

Additionally, GHG savings will be achieved by offsetting the usage of natural gas and grid electricity, which are currently employed by the Paper Mill. This project is expected to create more than 500 temporary jobs during construction an estimated 455 permanent operating jobs, including direct and flow-on, over the coming years. So, it reduces emissions, creates investment and employment and preserves land for better uses than landfill.

The Maryvale EfW Facility will generate energy from the controlled combustion of non-hazardous residual waste materials – waste that would otherwise go to landfill.

Following combustion, the facility will capture and convert the released heat into steam and electricity, with sophisticated filtering technology ensuring compliance with stringent emissions standards.

The Maryvale EfW Facility will provide energy as steam or electricity and interchange between the two during its operation, providing improved flexibility and efficiency.

Any excess energy would be fed into the Victorian grid. The Maryvale EfW Facility is scheduled to be operational by 2029. If there is a delay in the scheduled operational date, Veolia and the Maryvale SPV will provide an interim solution for waste management for the SEMAWP councils, until March 2031.

Advanced waste processing solutions are proven technologies that process household rubbish and put it to good use. Advanced waste processing solutions have great potential as part of a total approach to managing the rubbish we produce.

Alongside recycling, and separating green and food waste for composting, advanced waste processing is a smarter solution for household rubbish than burying it in the ground. The best outcomes will be achieved by minimising our waste, reusing or recycling, and then what is left over can go to advanced waste processing.

Advanced waste processing solutions have great potential as part of a total approach to managing the rubbish we produce. Alongside recycling, and separating green and food waste for composting, advanced waste processing is a smarter solution for household rubbish than burying it in the ground.

Developing a smarter solution to landfill will put items that can’t be reused or recycled to better use, such as being transformed into electricity to power homes and businesses and recovering valuable materials.

Other benefits to Councils of advanced waste processing include:

• Achieve landfill diversion of at least 95 per cent of non-recyclable household waste
• Proven technology used safely and effectively internationally for processing municipal waste
• Long-term waste processing security
• Price certainty over the life of the contract (25 years)
• The Maryvale EfW Facility is the most progressed facility in Victoria, scheduled to be operational by 2029
• Provide waste processing continuity.

Advanced waste processing facilities are suitable for processing household rubbish that can’t be recycled and would otherwise end up in landfill.

Landfill should be the last resort, so using rubbish to produce energy is preferable to putting it in landfill, but not as good as reusing or recycling. Waste to energy solutions are only suitable for material that can’t be reused or recycled viably.

Advanced waste processing facilities are being used safely and reliably around the world, including in the United Kingdom, Europe, Asia and North America.

Modern, best practice facilities have strong safety track records and are designed to meet strict standards. Facilities have real-time emission monitoring, and they are inspected and tested regularly to ensure safety standards are achieved. Advanced waste processing facilities are regulated by the Environment Protection Authority Victoria (EPA).

The facility will be appropriately located, constructed and operated according to strict regulations that minimise risks to the environment and people.

An independent literature review commissioned by EPA found that exposure to air emissions from modern facilities posed little potential health impacts or risk.

Waste to energy facilities minimise emissions by using extensive pollution control systems that capture particles, absorb heavy metals and other pollutants, and neutralise gases. Sensors are used to constantly monitor pollution levels to make sure they meet strict air quality standards.

In Victoria, facilities will need to operate within both the Victorian regulations and guidelines, which are based on European Union emission control limits.

To obtain approval from the EPA, any proposal will need to show how odour will be managed and minimised. Many facilities overseas have an enclosed area that stores rubbish under negative pressure, which prevents unpleasant smells from escaping.

Veolia will be exploring options for the implementation of an electrified fleet / Heavy Electric Vehicle (HEV) recharging stations to offset the greenhouse gas impact of hauling waste from the transfer station planned for construction in Melbourne’s south east, to the new facility in Maryvale.

Veolia expects significant developments and a growing capability over the next five years and has established a working group to develop a solution for the Maryvale project.

It is worth noting that as landfill capacity diminishes in Melbourne’s south east, all waste from south east Melbourne will be subject to long distance haulage. Lowering our transport fleet’s carbon footprint is a key Veolia global objective.

SEMAWP Pty Ltd had the final say on the successful tenderer, and submissions were evaluated by a panel made up of council representatives.

After an extensive expression of interest stage, SEMAWP conducted a competitive process with potential development partners who possess significant experience in delivering advanced waste processing facilities around the world.

SEMAWP is confident that this rigorous process identified a solution that provides the optimum financial, technological and environmental solution for the participating councils.

Participation in the SEMAWP procurement and key developments and milestones have been reported publicly by the participating councils at various times throughout the process. Due to the project being in a live procurement since 2020, there have been limitations regarding what can and can’t be reported during that time.

As is the case with all Victorian local and state government procurements, strict probity and confidentiality obligations apply. These requirements are required to protect commercially sensitive information provided by tenderers and to ensure a fair and equitable process is undertaken while councils pursue the best value for money outcome.

The SEMAWP procurement has maintained the required strict standards of probity and confidentiality throughout the process which have been in accordance with all probity, confidentiality, and transparency obligations under the Local Government Act 2020.

All nine councils involved in this exhaustive, four-year process endorsed the final Agreement. We believe we have achieved the optimal outcome for our communities that, at scale, is an exemplar of joint procurement between Councils.

Through this shared process, we're confident we have successfully managed any potential risks, including financials, delivering a great deal for our communities and for environmental outcomes.