The Federal Government is backing a new solar-powered recycling plant. 

The CEFC has made its first investment under the Australian Recycling Investment Fund, committing up to $16.5 million in debt finance on behalf of the Australian Government to a polyethylene terephthalate (PET) recycling facility in regional New South Wales. 

The new plant will recycle the equivalent of an estimated one billion PET bottles a year. 

Circular Plastics Australia (CPA) will be Australia’s largest PET plastic recycling plant and only the second facility of its kind in Australia to process PET end-to-end into food-grade recycled PET. 

The plant will increase Australian manufactured and sourced recycled PET by two thirds, reducing Australia’s reliance on both new and imported recycled plastics.   

The announcement comes just days after an export ban on sending mixed plastics overseas for recycling came into effect. 

The ban was agreed by Federal, State and local governments in 2019 after China and Indonesia blocked imports of waste from Australia and other nations. 

Construction is well underway, with the plant to be part powered by renewable electricity through the installation of solar panels.  

CEFC CEO Ian Learmonth said: “The CEFC investment supports Australia’s recycling industry at a time of significant change in the sector. We are particularly proud that the Australian Recycling Investment Fund’s first investment builds Australia’s capacity to generate high value recycled commodities that create an important revenue stream while also reducing carbon emissions.” 

“This is a genuine closed loop recycling solution that reduces the amount of plastic that goes to landfill. It also represents a significant advance in the development of Australia’s circular economy. The project shows decisive leadership and cooperation from major industry leaders, working together to find a higher order use for plastic in the waste hierarchy. We are pleased to see that CEFC finance continues to accelerate the deployment of market leading recycling and resource recovery projects.”