Maryvale paper mill to be powered by $600 million waste-to-energy plant

More than 1000 jobs will be created in the Latrobe Valley to build a $600 million power plant that will turn hundreds of thousands of tonnes of waste into power.

More than 1000 jobs will be created in the Latrobe Valley to build a $600 million power plant that will turn hundreds of thousands of tonnes of waste into power.

Australian Paper’s Maryvale mill, the state’s largest user of natural gas, will be powering itself by 2024 after it locked in plans to build the thermal energy plant.

It will see 650,000 tonnes of waste diverted from landfill and turned into power for the mill in a “controlled combustion” process that will also save 543,000 tonnes of carbon emissions every year — the equivalent of taking more than 100,000 cars off the road.

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A worker handles a roll of paper at the Maryvale mill. Picture: Simon Schluter

More than 1000 jobs will be created during construction, ensuring much-needed work for Latrobe Valley residents after the closure of the Hazelwood coal-fired power station.

It will also shore up the future of the 850 full time staff who work at the Maryvale mill, which has struggled to deal with surging power prices and uncertain supply.

Australian Paper will partner with Suez on the project and is now seeking private investment to fund the $600 million endeavour, which was ticked off by a $7.5 million government-funded feasibility study.

“Australian Paper is committed to our mission of sustainable growth for the next generation,” chief operating officer Peter Williams said.

“As the largest industrial user of natural gas in Victoria and a significant energy consumer, we must develop alternative baseload energy sources to maintain our future competitiveness.”

“Creating energy from waste is a perfect fit with our operations because in addition to electricity we require significant quantities of thermal energy to generate steam.”

Australian Paper’s mill at Maryvale.

Victorian Energy Minister Lily D’Ambrosio said: “Waste to energy technology is one way to reduce our reliance on landfill, so it’s good to see more people exploring options for managing Melbourne’s growing waste.”

Suez Australia chief executive Mark Venhoek said the company already operated more than 55 similar facilities around the world, which are particularly popular in Europe.

“We are proud to be partnering with Australian Paper on this innovative project which will be a landmark for Victoria’s emerging energy from waste sector,” he said.

The project has already secured a works approval from the Environment Protection Authority, as well as a council planning permit. Construction is expected to begin next year.

The federal government imposed tariffs on cheap foreign imported copy paper in 2017 in an effort to protect the paper mill, which is the biggest employer in the eastern Victoria region.

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