The iQRenew Soft Plastic Engineered Commodity (SPEC) facility in Taree, NSW, has formally opened its doors to industry stakeholders, government representatives and peak bodies, demonstrating at scale how household soft plastics can be turned into a valuable resource. PKN was there.
Although the plant has been operational for some time, the official opening on 27 August brought together brand owners, retailers, government and recycling leaders for a tour of the facility, which has already been processing soft plastics from the REDcycle legacy stockpile and kerbside collection trials.
Importantly, what the tour demonstrated, is that there are proven end markets for the recycled material produced, poised to scale with the right support from government and brand owners. One of the most exciting developments from a packaging perspective that PKN saw on the day was a prototype PE bottle produced from 30% recycled soft plastic content, currently under development by Trendpac.
Closing the infrastructure gap
For years, the “lack of infrastructure” has been a recurring refrain in the debate on soft plastics recycling. According to iQRenew managing director Danial Gallagher, the SPEC facility addresses that gap.
“This facility represents over five years of trials, innovation and significant investment,” Gallagher told attendees. “In its current configuration, it can process 14,000 tonnes of household soft plastics per year. With new government funding, we will be able to expand to 24,000 tonnes. That’s up to three times the volume previously collected by REDcycle.”
He described SPEC as “small beginnings” with massive potential. “The facility you’re in today is only half the equation,” he said. “Recycling only works when products that are made with recycled content are purchased. The more those products are bought, the more collections and the more processing we can support.”
Gallagher added that the site represents “the critical missing link in Australian recycling infrastructure”, and pointed to trials underway to complement mechanical recycling.
“We’ve been running chemical trials with our material to convert it back into oil. While at scale this is happening offshore, local pilots are underway and we’re excited to see these gain traction in Australia.”
Collaboration driving the scheme
The project has been made possible through collaboration between retailers, government and industry. Barry Cosier, co-CEO of Soft Plastics Stewardship Australia (SPSA), described the launch as the culmination of years of work across the value chain.
“SPSA has been a six-year overnight success story,” he said, recalling milestones from the early Kit Kat trial in 2019 to the formation of the Soft Plastics Taskforce and, most recently, provisional authorisation from the ACCC for the national stewardship scheme.
Cosier emphasised that procurement of recycled products is now the critical lever. “This plant will sit idle if no one buys the material at the end,” he told the audience.
“To maximise this asset and allow collections to roll out more broadly, we need offtake. That means brands, government and industry all making the decision to use recycled content in their products and procurement.”
He also drew attention to the product samples on display, from paving blocks to bin liners. “If you can make a paver out of soft plastics, anything is possible,” he said. “We saw 100 per cent recycled-content garbage bags produced from this facility – proof that circularity can be achieved.”
Cosier also announced the formation of a Stakeholder Advisory Council to guide SPSA as the scheme develops, with a focus on end-market development, community engagement and alignment with government. “It is producer responsibility – brands will fund it, brands will own the results – but we know we cannot do it without industry and government input,” he said.
Government backing
Representing the NSW EPA, executive director of programs and innovation Alex Geddes highlighted the importance of facilities like SPEC in shifting the state towards a circular economy.
“New South Wales generates 890,000 tonnes of plastic waste every year, with only 14 per cent recycled,” Geddes said. “This additional 10,000 tonnes per year of capacity will keep material out of landfill at a time when Greater Sydney faces a looming shortage of space.”
Geddes noted that the facility aligns with the state’s Plastics Action Plan, which aims to triple plastics recycling by 2030 and cut plastic litter by 30 per cent this year, supported by state-based bans on single-use and problematic plastics.
From waste to resource
During the tour, guests observed the process flow – from shredding and trommelling to advanced optical sorting – which produces three grades of output: clear/white LDPE, coloured LDPE and multilaminate. Current diversion from landfill is around 80 per cent, with the balance made up of contaminants such as chlorine-laden cheese and meat wrappers.
Gallagher explained: “The current plant is diverting 80 per cent of soft plastics from landfill. The contaminants are mainly chlorines, which are not desirable for recycling, but over time we’ll work with packaging producers to reduce these on the market and develop ways to put more of that material to beneficial use.”
The outputs are being used by 12 offtake partners to manufacture products including buckets, bin caddies, pallets, bollards, erosion control grids, insulation and paving blocks. Garbage bags containing 100 per cent recycled soft plastics were also showcased.
Gallagher went on to note that all SPEC-produced products (the pellets, the flake and the shred) have been certified under the Global Recycling Standard.
Traceability is enabled through the Curby Smart Recycling Platform, which tracks bags from household collection through to the offtake manufacturer. “This gives us full traceability and helps build community confidence,” Gallagher said.
Call for support
Speakers agreed that the facility represents a major milestone, but stressed that its long-term impact depends on end-market demand. Cosier and Gallagher both urged brands and governments to commit to purchasing products with recycled content, while Geddes said the state government would continue to align regulation, procurement and stewardship schemes to support a circular economy for plastics.
For the Taree community, SPEC has delivered more than 20 regional jobs and positioned the town at the centre of a national solution.
As Cosier summed up: “Today we see what was once a big, hairy audacious goal now made real. Waste is being transformed into a resource – and this is just the beginning.”
[Ed's note: The high level of interest from stakeholders across the packaging value chain speaks to the urgency of finding a national solution to the soft plastics recycling challenge, with the SPEC mechanical recycling facility well positioned to move Australia forward alongside other chemical recycling facilities soon to come on stream. PKN will continue to cover developments and amplify the leading voices in the soft plastics room.]
