Energy recovery facilities

The NSW Government supports thermal energy recovery as a residual waste management option where it can deliver positive outcomes for the community and human health and the environment are protected.

Energy recovery is supported where it makes sense to do so and where it is used to manage genuine residual waste, not as an alternative to waste reduction or recycling.

Operators who seek to recover energy by thermally treating waste must comply with the Energy from Waste Policy Statement, to protect the community and ensure best use is made of waste materials.

Why recover energy from waste?

Thermally treating waste is an opportunity to recover the energy stored within these materials. Using waste to produce energy can offset the community's use of other, non-renewable energy sources.

Strategic planning for energy from waste in NSW

The Waste and Sustainable Materials Strategy 2041 (the Strategy) sets out a blueprint for how NSW deals with waste into the future.

The NSW Government  committed to adopting a strategic approach to the role of energy from waste infrastructure to ensure such projects protect the environment and human health into the future, and maximise efficiencies for waste innovation, management, and energy recovery. While energy from waste facilities have been identified as a part of NSW’s residual infrastructure needs, their location needs to be strategically planned to ensure they meet NSW’s waste management demands into the future.

The NSW Government has developed the Energy from Waste Infrastructure Plan (PDF 900KB) which outlines the strategic planning considerations for future energy from waste infrastructure. The Plan ensures waste infrastructure is located in precincts most suitable for managing the States residual waste, providing innovation and investment opportunities, and protecting air quality for communities.

The Infrastructure Plan provides certainty and transparency to industry and the community on where energy from waste can be established and operated to manage genuine residual waste.

The Energy from Waste Infrastructure Plan (PDF 900KB) restricts new infrastructure to four priority infrastructure areas in NSW:

  1. West Lithgow Precinct
  2. Parkes Special Activation Precinct
  3. Richmond Valley Regional Jobs Precinct
  4. Southern Goulburn Mulwaree Precinct.

Outside of these areas, energy from waste will only be permitted if the facilities use waste, or waste-derived feedstock to replace less environmentally sound fuels (including coal or petroleum-based fuels) to generate energy at the site, and where that energy is used to power industrial and manufacturing processes on-site.

Energy from waste proposals are still required to comply with environmental and planning laws, including the Energy from Waste Policy Statement (PDF 400KB).

Additional energy from waste priority infrastructure areas may be identified in the future depending on whether additional energy from waste capacity is required in NSW.

Frequently asked questions on these changes are available.

Response to the Energy from Waste Report – Chief Scientist and Engineer

In December 2019 the Minister for Environment requested the Chief Scientist and Engineer provide independent expert advice on energy recovery facilities and related environment protection frameworks to ensure facilities in NSW undertake robust assessments and adopt international best practice standards and controls to ensure human health and the environment are protected.

As part of the review, the Chief Scientist and Engineer commissioned the University of Sydney to provide expert review and advise on the proposed best practice air emissions limits for energy from waste facilities in NSW.   

The Energy from Waste report from the Chief Scientist and Engineer made a number of recommendations to ensure proposals adopt international best practice standards and controls to protect human health and the environment.

The NSW Government has supported all the recommendations made by the Chief Scientist.

Updated Energy from Waste Policy Statement

The NSW Energy from Waste Policy Statement (PDF 369KB) has been updated to reflect the latest advice on air emissions standards from the NSW Chief Scientist and Engineer and ensures NSW has air emission standards that meet and exceed world best practice.

The updated Policy Statement ensures that all NSW energy from waste facilities, wherever they operate, are subject to strict new air quality and operating standards to help protect our environment and human health.

The EPA consulted on changes to the Energy from Waste Policy Statement to reflect the air emission recommendations of the Chief Scientist and Engineer between 31 March – 30 April 2021. A summary of the consultation outcomes, and the EPA’s response, is available in the Consultation Report (PDF 454KB).

Scope of the policy statement

The 'NSW energy from waste policy statement' covers all facilities that undertake thermal treatment of any waste or waste-derived materials. Specifically, thermal treatment means processing wastes by:

  • combustion
  • thermal oxidation
  • thermal or plasma gasification
  • pyrolysis and torrefaction.

Eligible waste fuels

Under NSW's energy from waste policy, certain low-risk wastes are termed ‘eligible waste fuels’. These wastes can be used for fuel due to their origin, low levels of contaminants, and consistency over time.

However, before using them:

Eligible waste fuels guidelines

Operators who intend to apply to the EPA to use waste or waste-derived materials as an Eligible Waste Fuel in NSW facilities should use the EPA's Eligible waste fuels guidelines (PDF 606KB).

Other wastes

Facilities recovering energy from all other wastes (that is, wastes that are not considered to be an eligible waste fuel by the EPA) must meet the technical, thermal and resource recovery criteria for ‘energy recovery facilities’ in Part 4 of the 'NSW energy from waste policy'.

These requirements equate to operating purpose-built facilities that use the best available technologies to recover energy from residual wastes. The residual wastes used must be materials that are not recyclable, that would otherwise be disposed of to landfill.

Energy Recovery Facility Guidelines

The Guide to the NSW Energy from Waste framework (PDF 582KB) (the Guide) is a summary of the assessment requirements and regulatory processes for proposed energy from waste projects in NSW. The Guide forms part of the 2020 Report of the NSW Chief Scientist and Engineer on energy from waste (Appendix 5) and provides general guidance on the regulatory and policy frameworks for energy from waste projects.

Energy from waste proposals must meet requirements under a number of statutes, regulations, policies, plans and other documents as part of the assessment and approval process. The Guide provides a general overview of the process to guide proponents in the assessment process.

Facilities outside the policy's scope

Some thermal treatment applications not deemed to undertake genuine energy recovery fall outside the scope of the NSW energy from waste policy statement.

Those outside the policy's scope include:

  • incineration facilities for the destruction of waste
  • facilities for the thermal treatment of contaminated soil
  • facilities proposing thermal treatment of unprocessed mixed waste streams
  • facilities proposing thermal treatment of waste exhumed from landfills
  • facilities proposing thermal treatment of hazardous waste materials

Still other thermal treatment applications fall outside the policy statement's scope because the technical or resource recovery criteria contained within the statement are not relevant to them, or because other regulatory frameworks already apply to them.

Page last updated