Energy from Waste Framework
NSW Government has a best-practice Energy from Waste Framework to guide the development of energy from waste proposals in NSW.
The Framework ensures energy from waste facilities meet strict performance standards and are in areas that best address the State’s waste management needs.
The framework was updated in 2025 following public consultation. Read about the consultation.
Energy from Waste Policy statement
This policy Statement is being reviewed and updated to incorporate the agreed actions from the Waste and Circular Infrastructure Plan, including ensuring emission limits and monitoring approaches are consistent with global best practice
Framework controls
The Energy from Waste Framework establishes several ‘tiers’ or levels of control for energy from waste activities depending on the type of waste being used for energy recovery and the type of process being used.
The first tier
These activities are excluded from the energy from waste regulatory framework under s142 of the Protection of the Environment Operations (General) Regulation 2022.
- These are activities that deliver environmental benefits and are already subject to regulatory control through the planning assessment process and EPA licensing, so there are no further requirements (such as location restrictions) set under the energy from waste framework.
- This includes biological processes such as anaerobic digestion and composting, use of an ‘eligible waste fuel’, autoclaving, and the thermal treatment of plastic waste for genuine plastic recycling.
- We are also making changes to include the thermal treatment of certain agricultural waste and anaerobic digestion residues from these wastes to produce beneficial end-products like biochar, biogas, biomethane, or sustainable aviation fuel.
The second tier
These activities are allowed outside of nominated precincts, but not in Greater Sydney.
- These are activities that deliver environmental benefits but require some additional regulatory and process controls. They already include using energy from waste to replace coal and liquid petroleum fuels in existing manufacturing facilities.
We are also making changes to include:
- the use of certain designed-to-specification fuels that are derived from non-municipal waste streams to replace gas in existing industrial and manufacturing facilities located outside of Greater Sydney
- the thermal treatment of end-of-life tyres to produce oil, steel, carbon black and syngas
The third tier
These activities must only occur in nominated precincts. These are activities that thermally treat mixed waste streams such as municipal solid waste and therefore require additional regulatory and process controls.
Precincts
The control activities must only occur in the following nominated precincts identified under s144 of the Protection of the Environment Operations (General) Regulation 2022:
- Parkes Activation Precinct
- Southern Goulburn-Mulwaree Precinct
- West Lithgow Precinct
- Tomago Precinct
We are making changes to re-gazette a map for West Lithgow to include the former Wallerawang power station site and establish a new Tomago Precinct in the industrial area of Tomago near the Resource Recovery Facilities already in the area.
Energy from Waste precincts must:
- be close to existing or planned infrastructure
- be connected to existing or planned road or rail infrastructure
- support existing waste, net zero and regional growth strategies.
Applications for energy from waste facilities are subject to a rigorous merit-based assessment by the Department of Planning, Housing and Infrastructure (DPHI). Assessment includes public exhibition of the development application (DA), detailed environmental assessments and community consultation.
Energy from Waste DAs must be supported by:
- detailed environmental impact and risk assessments, including assessments of air quality, human health and agricultural risk, noise, traffic, water and social impact
- comprehensive community and stakeholder engagement strategy, including outcomes of consultation undertaken during preparation of the DA, how the applicant has responded to issues raised during that consultation, and what consultation will be carried out into the future.
DPHI considers feedback from key stakeholders, including the community, councils and state government agencies. It works closely with the EPA and NSW Health to ensure air quality, risk to human health and agricultural risks are thoroughly considered.
If approved, an energy from waste facility in NSW is required to have an Environment Protection Licence (EPL) issued by the EPA. The EPL sets out the conditions for the facility’s operation and includes the maximum limits for air emissions from the facility that cannot be exceeded, along with continuous monitoring requirements for pollutants.
Community input is a vital part of the development assessment (DA) process. The community is invited to make a submission when the DA is placed on public exhibition, and government authorities, councils and other stakeholders are also invited to comment.
All submissions and advice received are considered by the applicant and the Department of Planning, Housing and Infrastructure (DPHI). The applicant must respond to the issues raised and DPHI considers the applicant’s response as part of its assessment.
All applicants are required to carry out a comprehensive open and transparent community consultation engagement process during the preparation of their DA. This approach recognises the importance of effective and genuine community consultation.
Chief Scientist and Engineer advice
In December 2024, the NSW Minister for Environment Penny Sharpe wrote to the Chief Scientist and Engineer on energy from waste (PDF 698KB) to ask for advice on international best practice standards and controls for energy from waste facilities, including advice on specific matters listed in Appendix A to the letter.
In April 2025, the Chief Scientist and Engineer wrote to NSW Minister for Environment Penny Sharpe on energy from waste (PDF 530KB), to provide advice on emissions from energy from waste facilities.
This advice confirmed that emission limits in NSW are among the most stringent when compared to other jurisdictions. The Chief Scientist and Engineer suggested the regulation could be amended following consultation, to add some flexibility to the current settings – with technical and operational practicability and costs to industry in mind.