ACT to Build Advanced Recycling Facility in Hume
ACT to Build Advanced Recycling Facility in Hume
ACT to Build Advanced Recycling Facility in Hume: Veolia Secures 20-Year Contract, $26 Million Project to Transform Regional Waste Processing
Intro
The Australian Capital Territory (ACT) is embarking on a transformative upgrade to its recycling infrastructure with the construction of a state-of-the-art Material Recovery Facility (MRF) in Hume, a critical investment to modernize the region’s waste processing capabilities.
Following a competitive procurement process throughout 2024, the ACT Government selected Veolia Australia and New Zealand, a global leader in environmental solutions, as its industry partner to design, build, and operate the new recycling facility under a 20-year operational contract.
This $26 million joint investment from the ACT and Australian Governments marks a decisive response to the 2022 fire that severely damaged the territory’s previous recycling facility and forced the transportation of recyclables interstate—a costly and unsustainable practice. The new plant will feature cutting-edge technologies designed to increase recycling rates, reduce contamination, and support the ACT’s transition to a circular economy.
Key Drivers Behind the Project
1. Destruction of the Former Hume MRF
The fire in December 2022 left the original Hume Material Recovery Facility (MRF) largely inoperable. Operated at the time by Re.Group, the plant was handling approximately 60,000 tonnes of recyclables annually, serving Canberra’s 460,000 residents. The fire resulted in 80% structural damage, forcing the ACT Government to divert recyclables to facilities in New South Wales.
This incident exposed the vulnerability of the ACT’s waste processing system, highlighting the need for resilient, modern, and locally based recycling infrastructure.
2. Growing Population and Waste Volumes
The ACT’s population is projected to surpass 500,000 by 2030, alongside increasing per capita consumption. This growth is driving up the volume of recyclable materials, underscoring the necessity for a larger, more efficient MRF.
Veolia: The Winning Industry Partner
Veolia Australia and New Zealand is a regional division of the French multinational Veolia Environnement, a company with over 220,000 employees globally and operations across 48 countries. Veolia is renowned for its expertise in waste management, water services, and environmental solutions.
Key Factors in Veolia’s Selection:
- Proven track record in designing and operating large-scale recycling and resource recovery facilities.
- Capability to deploy advanced technologies for sorting, contamination control, and output quality improvement.
- Extensive experience with MRFs across Australia, including in New South Wales, Queensland, and Victoria.
Project Scope and Funding Breakdown
The $26 million project will cover the complete development of the new MRF, which is expected to process up to 115,000 tonnes of mixed recyclables per year—nearly double the previous capacity.
The funding allocation will cover:
| Project Component | Estimated Portion of Budget |
|---|---|
| Demolition of Fire-Damaged Facility | ~$3 million |
| Design, Engineering, and Planning Approvals | ~$2 million |
| Construction (Facility and Equipment) | ~$15 million |
| Technology Integration (Sorting, Data, Safety Systems) | ~$4 million |
| Environmental Compliance (Greenstar, Wastewater, Stormwater) | ~$2 million |
Advanced Recycling Technologies
The new Hume facility will house best-in-class technology, placing it among Australia’s most sophisticated MRFs. This technology will significantly reduce contamination and increase recovery rates, ensuring higher-quality end products for resale into domestic and international recycling markets.
1. Optical Sorting & Automated Separation
- Laser optical identification systems will scan and identify materials based on composition and colour.
- Air jets will separate plastics, distinguishing between PET, HDPE, and other polymer types.
- Screens will segregate paper and cardboard, improving purity levels.
2. Glass Purification Plant
- Crushing and washing systems will produce clean, finely processed glass cullet.
- The output will be suitable for remanufacturing into bottles, construction materials, and road base.
3. Magnetic Separation
- Powerful magnets will extract ferrous metals, while eddy currents will sort non-ferrous metals like aluminium.
4. Data-Driven Operations
- Automated data collection systems will monitor material flow, equipment efficiency, and contamination rates.
- Real-time analytics will enhance operational performance and reporting.
Environmental and Safety Features
The new facility is designed to meet stringent environmental and safety standards, aligning with the ACT Government’s Circular Economy Strategy 2022-25.
1. Green Star Certification
- The facility will meet Green Star standards, focusing on energy efficiency, reduced emissions, and sustainable building practices.
2. Water Management Systems
- Wastewater capture, treatment, and reuse systems will reduce water consumption.
- Stormwater management infrastructure will ensure compliance with environmental regulations.
3. Fire Prevention and Suppression
- Advanced fire detection systems, thermal cameras, and automated suppression technology will prevent a recurrence of the 2022 fire.
Project Timeline
| Milestone | Estimated Date |
|---|---|
| Demolition of Fire-Damaged Facility | Mid-2025 |
| Construction Commencement | Late 2025 / Early 2026 |
| Facility Commissioning and Testing | Late 2027 |
| Full Operations Begin | 2028 |
Interim Recycling Arrangements – Role of Re.Group
While the new facility is under construction, recycling services will continue to be handled by Re.Group, the company that operated the previous MRF before the fire.
About Re.Group:
- Founded in 2013, Australian-owned, and specializing in resource recovery solutions.
- Operates MRFs across Australia, including in Sydney and Perth.
- Known for innovative recycling systems and partnerships with local governments.
Current Operations:
- Since the fire, Re.Group has facilitated the transportation of 50,000 tonnes of recyclables annually to NSW processing facilities.
- Cost to the ACT Government: Estimated at $10 million per year due to transport and outsourcing expenses.
Stakeholders and Decision Makers
ACT Government
- Minister for City Services, Tara Cheyne (appointed November 2024) is leading the project.
- Minister Cheyne has emphasized the importance of the facility in supporting the region’s growing population and reducing reliance on interstate facilities.
Federal Government
The Australian Government’s funding contribution aligns with broader national waste policy objectives, including improving recycling capacity and reducing waste exports.
Long-Term Strategic Importance
1. Circular Economy Leadership
The new MRF aligns with the ACT’s broader strategy to transition to a circular economy, where resources are reused, repurposed, and recycled within the region.
2. Reduced Carbon Footprint
- Local processing eliminates the need for long-distance transport of recyclables, cutting transport emissions.
- High-quality outputs reduce the demand for virgin materials, saving energy and resources.
3. Market-Ready Commodities
The facility will produce clean, high-quality recyclables that are better suited for domestic manufacturing markets, supporting the National Waste Policy Action Plan’s goal to strengthen domestic recycling capacity.
Summary
The ACT Government’s partnership with Veolia to deliver the new Hume recycling facility represents a landmark investment in sustainable waste management infrastructure.
This $26 million project will future-proof the region’s recycling capabilities, leverage cutting-edge technology, support population growth, and reduce environmental impacts.
With construction set to commence in 2026 and operations expected by 2028, the facility will cement the ACT’s position as a leader in resource recovery and circular economy practices in Australia.
