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
two lines, two flues (one per line) and one gas stack;
a brick making facility;
a control room;
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%.
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.
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.