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  • Australia - WtE Plant

    18/10/2018 | Project Number: 000107

    Key Project Facts

    Country: Location:
    Australia Kwinana, Western Australia
       
    Principal Facility Type: Facility Type:
    Incineration (with energy recovery) Waste-to-Energy, Waste-to-Co-Product
       
    Principal Waste Type: Waste Type:
    MSW Municipal Solid Waste, Commercial/Industrial
       
    Development Phase: Value:
    Project Commencement US$ 498,398,006
       
    Output (MW):
    32.0
       
    Byproduct: Capacity (tonnes/year):
    Construction Materials 400,000
       
    Commission Date:
    Q2 2021
       

    Project Updates

    Date Change made
    18/10/2018 Financial close reached with ACCIONA and Veolia, enabling start of construction.
    09/01/2018 Groundworks to start in mid-January.
    29/12/2017 Macquarie in exclusive negotiations with consortium including ACCIONA and Veolia.
    28/12/2017 Macquarie Capital has assumed lead responsibility for final project delivery.
    01/07/2016 BGC Contracting nominated as preferred EPC contractor.
    06/05/2016 Posco E&C no longer on project team.
    15/10/2015 Contract awarded to Phoenix Energy Australia.
    04/09/2015 EPA approval issued.
    03/02/2015 EPA recommends project approval.
    17/12/2013 Waste supply agreement signed. Project timeframe revealed.
    04/11/2013 Phoenix signs agreement which will see Algae.Tec carbon capture technology used on the project.

    Construction of a 36 WtE plant.

    On 17th October 2018, Project Co, made up of Phoenix Energy, Macquarie Capital and DIF Infrastructure, reached financial close with Acciona to design and build a A$700 million, 36 MW waste-to-energy (WtE) plant in the industrial area of Kwinana, Western Australia (The Kwinana Project), and with Veolia as the preferred bidder for the operations and maintenance contract (O&M).

    Acciona’s engineering, procurement and construction (EPC) contract includes a 36-month construction period, starting immediately. Veolia will commence its 25-year O&M contract, which has an estimated value of A$450 million, in 2021.

    In October 2015, eight Perth councils awarded a contract to Phoenix Energy Australia, collaborating with John Holland, to develop the project. The eight councils are South Perth, Canning, Mandurah, Kwinana, Armadale, Gosnells, Serpentine Jarrahdale and Murray.

    In December 2017, Macquarie Capital assumed lead responsibility for final delivery of the project and entered into exclusive negotiations with Acciona and Veolia for the EPC and O&M contracts. Macquarie Capital and DIF will provide A$275 million of equity finance for the project, with the Australian Government’s Renewable Energy Agency providing a grant of A$23 million, the Clean Energy Finance Corporation (CEFC) committing up to A$90 million and a group of financial institutions and the CEFC providing A$400 million in debt finance.

    The Kwinana project will recover energy from municipal, commercial and industrial waste. Up to 300,000 tonnes per annum (tpa) of municipal solid waste and up to 100,000 tpa of commercial and industrial waste have been identified as potential feedstocks. The facility will generate steam and/or electricity and it will also be capable of recovering recyclable metals, which would otherwise have gone to landfill. It is also planned to convert the residual ash to value-added by-products such as bricks, pavers and road aggregate. The project will utilise Martin reverse-acting stoker grate technology.

    Facilities to be built include:

    • waste receiving area;
    • two fully automated furnaces or lines;
    • steam system with electricity generation;
    • flue gas cleaning air pollution control system (one per line);
    • two lines, two flues (one per line) and one gas stack;
    • a brick making facility;
    • a control room;
    • laboratory;
    • associated infrastructure.

    Preliminary modelling indicated that the facility will deliver a net reduction in greenhouse gas emissions, once the elimination of landfill gas emissions (associated with the diversion of the feedstocks away from landfill) and the replacement of base-load fossil fuel fired power or steam generation are taken into consideration. Diversion of waste from landfill is planned to reach 90%.

    Contracts

    Phoenix Energy and John Holland announced their intention to collaborate on the Kwinana WtE project in May 2012. Phoenix Energy is a waste-to-clean energy project development company. John Holland, a wholly-owned subsidiary of Leighton Holdings, is one of Australia’s leading engineering, contracting and services providers to the infrastructure, energy and resources and transport services sectors.

    On 29th October 2013, it was announced that Phoenix Energy had signed an exclusive technology access agreement with Algae.Tec for WtE facilities in Australia and New Zealand. Phoenix Energy intends to utilise the Algae.Tec carbon capture technology on The Kwinana Project.

    In December 2013, the City of Kwinana and Phoenix Energy entered into a 20-year waste supply agreement for the proposed facility.

    On 3rd September 2015, Western Australia's Environmental Protection Authority (EPA) issued its approval, signed by the Minister for Environment, Albert Jacob, for the project to proceed.

    On 26th April 2016, Business Environment Network reported that Phoenix Energy had confirmed that its construction partner, Posco E&C, had been issued with a notice of termination and would no longer be part of the project team.

    Project Progress

    In January 2018, Phoenix Energy revealed that site groundworks would start in mid-January in preparation for construction to start. The commissioning phase is scheduled for the fourth quarter of 2020, with the facility due to be fully operational in the second quarter of 2021.

    Construction started in October 2018, following financial close on the project.

    Contact Information

    Contractor/Engineer
    Contact Mr Bede Noonan Phone
    Job Title Managing Director, Acciona Geotech Fax
    Email [email protected]
     
    Company Acciona
    Address 174 Turner Street
    Port Melbourne
    Victoria
    3207
    Australia
    Phone 61 3 9624 4200
    Fax
    Email [email protected]
    Web www.acciona.com.au
    Operator
    Contact Mr Mark Taylor Phone 61 2 9841 2912
    Job Title General Manager Fax
    Email [email protected]
     
    Company Veolia Australia and New Zealand
    Address Cnr Unwin & Shirley Streets
    Rosehill
    New South Wales
    2142
    Australia
    Phone
    Fax
    Email [email protected]
    Web www.veolia.com.au
    Operator
    Contact Mr Danny Conlan Phone
    Job Title Managing Director & Chief Executive Officer Fax
    Email [email protected]
     
    Company Veolia Australia and New Zealand
    Address Cnr Unwin & Shirley Streets
    Rosehill
    New South Wales
    2142
    Australia
    Phone
    Fax
    Email [email protected]
    Web www.veolia.com.au
    Project Partner/Associate
    Contact Mr Greg Taylor Phone
    Job Title General Manager, Water and Enviro Business Fax
    Email [email protected]
     
    Company John Holland
    Address Level 8
    67 Walters Drive
    Osborne Park
    Western Australia
    6017
    Australia
    Phone 61 8 9482 2700
    Fax 61 8 9482 2892
    Email [email protected]
    Web www.johnholland.com.au
    Sponsor/Developer
    Contact Mr Steve McCool Phone 44 20 3037 4411
    Job Title Corporate Communications Fax
    Email [email protected]
     
    Company Macquarie Group
    Address Ropemaker Place, 28 Ropemaker Street
    London
    EC2Y 9HD
    United Kingdom
    Phone 44 20 3037 2000
    Fax
    Email
    Web www.macquarie.com/
    Sponsor/Developer
    Contact Mr Peter Dyson Phone
    Job Title Managing Director Fax
    Email [email protected]
     
    Company Phoenix Energy Australia
    Address P.O. Box 85
    Elphinstone
    Victoria
    VIC 3448
    Australia
    Phone 61 3 9674 7291
    Fax 61 3 5473 3243
    Email [email protected]
    Web www.phoenixenergy.com.au
    Sponsor/Developer
    Company Macquarie Group
    Address 50 Martin Place
    Sydney
    New South Wales
    2000
    Australia
    Phone 61 2 8232 3333
    Fax
    Email [email protected]
    Web www.macquarie.com
    Waste Projects across the world

    AcuComm Database Status at 20 Oct 2018

    Total number of contacts listed: 18,962

    Total number of projects listed: 6443

    Number of countries covered: 173

    Projects created this quarter: 226

    Projects updated this quarter: 564

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