Soft plastics recycling in NSW gets major new investment

Two new regional projects, funded by the Australian and NSW governments with industry, will tackle plastic waste, drive Australia’s transition to a circular economy and boost jobs.

Sicut Enterprises received $5 million from governments to build Australia’s first commercial composite sleeper production facility. The north-west NSW facility will transform up to 8,000 tonnes of hard-to-recycle coloured rigid and soft plastics every year into composite railway sleepers for Australian rail infrastructure. The project will support 30 ongoing and 10 construction jobs.

Close the Loop received $2.35 million to set up an advanced mechanical recycling facility in south-west NSW. It will process 4,400 tonnes of mixed post-consumer soft plastics a year, creating plastic pellets to make bins, shipping pallets, crates, tubs and sound walls, and an engineered asphalt additive called TonerPlas. The project will support 14 ongoing and 6 construction jobs.

The $7.4 million government investment includes $1 million from the NSW Government and $6.4 million from the Australian Government’s $60 million Recycling Modernisation Fund Plastics Technology stream.

The Recycling Modernisation Fund is a national initiative expanding Australia’s capacity to sort, process and remanufacture glass, plastic, tyres, paper and cardboard. When combined with co-investment from all states, territories and industry, the Recycling Modernisation Fund will give a $1 billion boost to Australian recycling.

The $60 million Recycling Modernisation Fund Plastics Technology stream funds solutions that increase Australia’s recycling and recovery rates for hard-to-recycle plastics.

Six recycling projects have now been announced under this stream, including three in Victoria and one in South Australia. When complete, the facilities will process about 70,000 tonnes of hard-to-recycle plastics a year, including at least 62,000 tonnes of soft plastics.

The Australian Government is increasing recycling capacity in Australia by more than a million tonnes every year while creating over 3,000 jobs, including more than 700 in NSW.

Quotes attributable to the Minister for the Environment and Water, Tanya Plibersek:

“I know everyone in NSW wants to do their part to reduce their waste, reuse and recycle household products, and lighten their impact on the planet. This funding is supporting new recycling infrastructure, helping to solve challenges with plastic waste and stop plastics from going to landfill.

“The Albanese Government is committed to working with states and territories to better manage waste and increase recycling capacity, including for soft plastics, and better protect our environment for our kids and grandkids.

“This is great for the environment, but it’s also great for the economy. For every job in landfill, there are three jobs in recycling.”

Quotes attributable to NSW Minister for Climate Change and the Environment, Penny Sharpe:

“Close the Loop and Sicut are leading the charge in transforming the recycling industry in NSW, demonstrating innovative solutions to cut back on plastic waste.

“Once operational, these cutting-edge facilities will boost our recovery and recycling rates for hard-to-recycle plastics, allowing them to be recirculated into the economy in a safe and sustainable way.

“With landfill in Greater Sydney on track to run out by 2030, investments like these will contribute to the solution.”

Quotes attributable to Sicut Australia Director, Thomas Staley:

“Sicut is delighted to partner with the NSW and Commonwealth governments to bring the transformative impact we’ve had on railways across Europe and the USA to Australia’s rapidly growing circular economy.  

“This investment is a win for Australia’s railways with better performance and value; a win for consumers with a long-term use for plastic waste; and a win for the environment through reduced embodied carbon and less deforestation.

“This facility will be the first commercial composite sleeper production facility in Australia with the ability to transform thousands of tonnes of plastic waste into thousands of long-life railway sleepers that have a significantly lower carbon footprint than the current alternatives.”

Quotes attributable to Close the Loop Head of Circular Economy, Steve Morriss:

“TonerPlas has been used in the highly successful M80 Freeway Upgrade in Victoria among several other projects, and we’re thrilled to expand the model into NSW with the support of the RMF. This grant will allow us to manufacture TonerPlas in NSW, using soft plastics waste, and create jobs across the state.

"The best roads in the world use polymer modified binders, so why not use recycled polymers to help make the best roads in Australia?”