Landfill gas from BINGO Industries’ Eastern Creek Landfill site in western Sydney will generate 4MW per year of renewable energy – enough to power approximately 7,000 homes – by late 2024, after an agreement reached with renewable energy and carbon abatement company, LGI Limited. The two companies have entered into a Landfill Gas Rights agreement for LGI to invest $16.5m to $18.5m over the next 15 months to install additional gas extraction infrastructure at Eastern Creek and install, own and operate a 4MW renewable energy power station on the site.
The landfill gas will fuel the power station, helping BINGO to achieve its decarbonisation goals. Renewable energy generated on site will be provided to BINGO to power the Eastern Creek Recycling Ecology Park and its state-wide network of transfer stations.
The power station is expected to be generating energy by late 2024 with a potential future expansion option under consideration including installing energy storage batteries and increasing generation capacity.
LGI’s capital investment is forecast to generate operating earnings1 between $3.0M and $3.5M p.a. The initial term of the agreement is 15 years with two options for five-year extensions.
LGI has a portfolio of 31 contracted carbon abatement and renewable energy projects in Queensland, NSW and ACT. The first stage of the Eastern Creek development will be equivalent to LGI’s largest current project, at Mugga Lane in Canberra, and its first generation project with a private sector waste management company.
Chief Operating Officer Jarryd Doran said, “We are delighted to be working with one of Australia’s leading private waste operators and helping them to achieve their decarbonisation ambitions.
“Projects like Eastern Creek will provide reliable, affordable and responsive energy to customers, and contribute to speeding up the world’s transition to renewables.”
Chief Executive Officer of BINGO Industries, Chris Jeffrey, said the agreement with LGI forms an important part of the company’s decarbonisation plan.
“We have a very clear decarbonisation pathway in place, and the production of renewable energy from our landfill is a key part of this.
“The agreement with LGI will enable us to put that gas to a more beneficial use, while reducing our emissions and achieving circular outcomes. It will also see us produce renewable energy which will be used to power our Eastern Creek Ecology Park and broader NSW network as well as feeding surplus renewable electricity into the National Electricity Market (NEM),” he said.
The Eastern Creek Recycling Ecology Park includes one of the most advanced waste recycling facilities in Australia, and has an important role in providing an environmentally sustainable and enduring solution to deal with Sydney’s waste and limited landfill supply.