Cleanaway and Viva Energy have concluded an initial assessment for their planned soft plastics recycling initiative.
This marks a significant step towards establishing the first major advanced recycling facility of its type in Australia, according to the companies.
The two companies have entered into a memorandum of understanding (MOU) to begin a detailed feasibility review.
This next phase is aimed at evaluating the technical and financial aspects of the proposed development. The feasibility process will extend over a year and involve engineering assessments.
It will analyse both the sorting of plastic waste and its conversion into pyrolysis oil.
Specialist input from technology and engineering consultants will be sought.
A key outcome will be a unified design concept for the facility. This phase will also help estimate investment levels and construction-related costs.
The front-end engineering and design (FEED) stage is planned to begin in 2026. However, its exact timing depends on the finalisation of national packaging regulation changes. These include updates under Australia’s extended producer responsibility (EPR) scheme.
In 2022, the national government committed to reforming packaging rules. These reforms target mandatory changes in packaging composition and safety standards. Requirements could include minimum recycled content and bans on harmful substances.
Public consultation feedback from Australia’s Department of Climate Change, Energy, the Environment and Water showed strong engagement with the potential EPR scheme, with revenue to be reinvested into the supply chain.
The EPR framework is designed to support confidence and investment in recycling. It also encourages domestic manufacturers to create packaging that is easily recyclable. The scheme intends to bring practices in line with international norms.
Cleanaway Strategy, Mergers & Acquisitions executive general manager Frank Lintvelt said: “We are looking to establish a pathway to a fully circular solution for soft plastics in Australia.
“Soft plastics are high on the list in our conversations with municipal and commercial customers looking for sustainable outcomes for this problematic waste stream.
“Cleanaway is uniquely positioned to leverage its national collection and processing footprint to deliver a solution at scale together with Viva Energy.”
