The Clean Energy Finance Corporation (CEFC) has made its first investment under the Australian Recycling Investment Fund, committing up to $16.5 million in debt finance on behalf of the Australian government to a PET recycling facility in regional NSW.
The new plant will recycle the equivalent of an estimated one billion PET bottles a year, as well as create long-term employment opportunities in Albury-Wodonga. The PET plastic will be used to produce more than 20,000 tonnes of new bottles and food packaging a year.
The announcement comes just days after an export ban on sending mixed plastics overseas for recycling came into effect. The ban was agreed by all levels of government in 2019, after China and Indonesia blocked imports of waste from Australia and other nations.
Ian Learmonth, CEFC CEO, says the CEFC investment supports Australia’s recycling industry at a time of significant change in the sector.
“We are particularly proud that the Australian Recycling Investment Fund’s first investment builds Australia’s capacity to generate high-value recycled commodities that create an important revenue stream, while also reducing carbon emissions,” Learmonth says.
“This is a genuine closed-loop recycling solution that reduces the amount of plastic that goes to landfill. It also represents a significant advance in the development of Australia’s circular economy.
“The project shows decisive leadership and cooperation from major industry leaders, working together to find a higher order use for plastic in the waste hierarchy.
“We are pleased that CEFC finance continues to accelerate the deployment of market-leading recycling and resource recovery projects.”
Circular Plastics Australia (CPA) will be the country’s largest PET plastic recycling plant, and only the second facility of its kind in Australia to process PET end-to-end into food-grade recycled PET.
CPA is a joint venture between Cleanaway, Pact Group and Asahi Beverages. Construction is well underway, with the plant to be part powered by renewable energy through the installation of solar panels.
“This is a critical time to be investing in the industry and CPA’s world-class PET recycling facility represents an opportunity to deliver long-term economic and environmental benefits for Australia,” comments Mac Irvine, CEFC waste and bioenergy lead.
“With the further tightening of international bans on the importation of waste materials, this project helps future-proof domestic supply chains against further shocks to the waste and recycling industry.”
The investment adds to the growing CEFC portfolio in bioenergy, recycling and energy from waste, which has now reached more than $400 million, for a total investment value of $1.7 billion.
