A consortium comprising DIF, Macquarie Capital and Phoenix Energy Australia has achieved financial close on a greenfield waste-to-energy facility in Kwinana, near Perth, Australia. DIF has acquired a 60 percent shareholding in the project through two of its funds, DIF Infrastructure IV and DIF Infrastructure V.
Once operational, the facility will divert household commercial and industrial waste from landfills, representing a quarter of Perth’s post-recycling rubbish. The facility will benefit from long-term municipal waste supply agreements with Rivers Regional Council and the City of Kwinana, two regional councils located in the Perth region.
At the facility, the waste will undergo thermal treatment, whereby the recovered energy is converted into steam to produce electricity. Metallic materials will be recovered and recycled, while other byproducts of the process will be reused as construction materials.
Acciona, a global leader in waste-to-energy facilities, will design and construct the facility. The facility will use Keppel-Seghers moving grate technology.
Construction will commence this month, while start of operations is planned for the end of 2021.
Once operational, Veolia, which operates more than 60 waste-to-energy plants across the globe, will operate and maintain the facility under a 25-year agreement.