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Spanish company to build $500m waste facility for Opal Paper

Opal Australian Paper and SUEZ plan to begin construction on an Energy from Waste facility at Opal’s Maryvale paper mill before the end of next year. The initial 112-megawatt plant will generate electricity for the Maryvale Mill from about 325,000 tonnes of non-recyclable waste that otherwise would go to landfill. It has been reduced in size from an earlier draft project and will be built in stages. Source: Timberbiz

This first stage of the $500 million project is expected to be finished in early 2025 and have capacity to process 325,000 tonnes of waste each year to generate steam and electricity for the mill.

Spain’s Acciona has been appointed to build the plant in the Latrobe Valley, while Suez has signed a long-term contract to supply waste. The venture still needs to secure a further long-term waste supply contract to reach financial close, expected in the second half of 2021.

The Maryvale facility is expected to create more than 500 jobs in Victoria during construction, with 225 of those in Gippsland. Once operational, the facility will support 450 ongoing direct and indirect positions in the state. This includes work for around 130 people in Gippsland.

The project will be delivered in time to address the pending closure of south-east Melbourne’s main landfill, and a second line could be added in future to cater for the infrastructure requirements of Victoria’s growing population.

“This project presents a significant economic opportunity for the Latrobe Valley during both the construction phase and once the facility is operational,” Federal Member for Gippsland Darren Chester said.

“Opal Australian Paper is already one of the largest employers in the Latrobe Valley and this $500 million investment in the Energy from Waste facility would be among the biggest private sector projects in Gippsland right now.

“The projected number of on-going jobs that will be created would make a significant difference to the economy in the Latrobe Valley and Gippsland more widely,” he said.

“This project is a show of faith in our region and our people at a time when the Federal Government is doing what it can to support jobs, generate employment and help businesses through the coronavirus recession.”