After a marathon seven-year construction period fraught with challenges, Australia's first large-scale waste-to-energy facility has officially opened in Western Australia.
A Landmark Project for Australian Renewable Energy
Premier Roger Cook will today inaugurate the Kwinana Energy Recovery facility, marking the completion of a project that began construction back in March 2019. The plant represents a significant milestone for Australia's waste management and renewable energy sectors.
The facility is designed to process up to 460,000 tonnes of local household waste annually that would otherwise be destined for landfill. Through advanced thermal treatment technology, it will convert this waste into 38 megawatts of baseload electricity, enough to power approximately 50,000 Western Australian homes.
Overcoming Significant Hurdles
The journey to completion was far from smooth for project leader Acciona, the Spanish contracting giant that eventually took full ownership in March 2024 after original proponents Macquarie Capital and Dutch Infrastructure Fund exited the project.
Multiple challenges plagued the development, including COVID-19 pandemic disruptions, international border closures, legal battles, and corporate restructuring. These cumulative setbacks contributed to the project's budget nearly doubling from initial estimates to approximately $750 million.
Bede Noonan, Chief Executive of Acciona's Australian Infrastructure Division, described the complexity of the undertaking. "These industrial, three-dimensional projects are about as complex as they get," Mr Noonan stated from his Perth office.
Comparing the waste-to-energy plant to Acciona's recent road and rail developments in Western Australia, he emphasized that "dollar value" did not determine a project's difficulty, noting that "This was... probably ten times as complex" than other infrastructure projects.
Broader Implications and Future Projects
The successful completion of the Kwinana plant comes as Acciona continues to expand its Australian portfolio. The company is currently building Western Power's new Clean Energy Link north of Perth and has expressed interest in participating in the multibillion-dollar upgrade of Henderson naval yards for AUKUS.
Mr Noonan advocated for greater contractor involvement in early design phases of major projects, suggesting this approach could save billions. He pointed to Sydney's second harbour tunnel, where Acciona methods reduced costs by approximately $1 billion through engineering innovations.
"The Australian model has no ability for constructors to make any changes. It's very locked, set specified to within an inch of its life," he observed. "We've got enormous engineering talent here in Australia... but we are restraining ourselves from innovating."
Meanwhile, Acciona recently withdrew a bid for ACCC approval to acquire the nearby East Rockingham waste-to-energy plant amid competition concerns. Mr Noonan confirmed the company remains interested in the asset, stating "We would like to (buy it)... we think there is a way through over time, because our desire is not to have any negative impact on the waste market in Australia."
The East Rockingham facility remains under administrators' control more than a year after encountering financial difficulties.
