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South Eastern Organics Melbourne Composting Facility
Case study

Melbourne organic waste recycled into new compost future

Household waste no more

The South Eastern Organics Processing Facility was built by leading international waste management company Sacyr Group, and uses a fully-enclosed in-vessel composting process to turn organic waste from household green waste bins into a high-grade compost.


CEFC commitment


truckloads of organic waste


high-grade compost

When organic waste such as food and green waste ends up in landfill it breaks down and produces methane. With this technology, councils can avoid those emissions by turning their organic waste into re-usable compost, while also reducing our unsustainable reliance on landfill as a waste disposal option.
Ian Learmonth

Our investment

The CEFC has committed up to $38 million in debt finance to the project in an industry-first finance model that provides councils with access to a project financing structure that has rarely been leveraged across local government.

our impact

The Melbourne plant provides part of the organic waste solution for eight of the 31 councils whose waste streams are coordinated by the Victorian Metropolitan Waste and Resource Recovery Group. The eight participating councils are Bayside, Cardinia, Casey, Frankston, Glen Eira, Greater Dandenong, Kingston and Monash.

The project demonstrates how CEFC finance can address methane emissions, which have a global warming potential 25 times stronger than that of carbon dioxide.

The $65 million plant converts around 12,000 truckloads of household garden and food waste, drawn from council kerbside green waste collections, into 50,000 tonnes of high-grade compost each year.

The plant is expected to abate more than 65,000 tonnes of CO2-e emissions annually – cutting 85 per cent of the emissions the waste would have generated in landfill – the same as removing about 13,900 cars from the road each year.

Food and green waste makes up an estimated 42 per cent of landfill from Australia’s municipal and commercial and industrial waste. It will mean food and green waste produced by residents in the rapidly growing Dandenong region in Melbourne’s south-east will not end up as landfill, where it would produce harmful greenhouse gas emissions such as methane. Instead, the waste will produce compost for local parks and gardens.

Read our report

Energising resource recovery: the Australian opportunity

Last updated October 2020. Victoria, Bioenergy/Waste, Energy efficiency, Low emissions
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