Australian Government commits US$10.5M in soft plastics recycling technology in Victoria

AUSTRALIA – The Australian Government has announced an A$15.6 million (US$10.5 million) investment to advance soft plastics recycling in Victoria.

This significant investment is projected to divert over 43,000 tonnes of soft plastics from landfills each year, contributing to the country’s broader environmental goals.

The initiative is part of the new Recycling Modernization Fund Plastics Technology stream, a collaborative effort with the Victorian Government focused on tackling the recycling of hard-to-process plastics.

The fund seeks to enhance Australia’s recycling capabilities and promote a circular economy.

Several companies are poised to benefit from this significant funding initiative. Pro-Pac Group is set to receive more than A$6 million (US$4.08m) to expand its facility’s capacity.

This expansion will enable the facility to transform recycled feedstock into soft plastic packaging containing 30% recycled content, producing up to 11,000 tonnes of Australian soft plastic packaging annually. The project is also expected to create 14 direct jobs, contributing to the local economy.

Naula has been granted over A$5 million (US$3.40m) to implement advanced sorting and processing technology.

This cutting-edge technology will manage up to 32,000 tonnes of soft and mixed plastics annually. By refining these materials, Naula aims to produce new plastics, including food-grade packaging, a critical sector in the industry.

The project is projected to generate 61 direct jobs, further boosting regional employment.

Sustainable Plastic Solutions will receive more than A$4 million (US$2.72 million) to enhance its recycling technology.

This funding will allow the company to process an additional 8,000 tonnes of agricultural plastics annually. These materials, such as films, grain tarps, and baling twine, will be converted into high-quality resins for remanufacturing.

The project is expected to create 25 direct jobs, supporting both the recycling industry and the agricultural sector.

Australian Environment and Water Minister Tanya Plibersek highlighted the significance of this funding, stating, “This investment supports new recycling infrastructure, addresses plastic waste challenges, and prevents soft plastics from ending up in landfills. It also fosters innovation and job creation.

“It’s encouraging to see state governments committed to removing soft plastics from landfills and collaborating with industry to establish a circular economy for soft plastics in Australia. This is a win for the environment, the economy, and job growth.”

The A$60 million (US$40.78m) Recycling Modernization Fund Plastics Technology stream is a nationwide initiative to improve Australia’s recycling and recovery rates for challenging plastics, scale up collection schemes, and facilitate the transition to a circular economy.

The first project under this stream was an A$20 million (US$13.59m) investment in a South Australian recycling facility that processes soft plastics.

When combined with co-investment from state governments and industry, the Recycling Modernization Fund is expected to contribute an A$1 billion (US$679.70m) enhancement to Australia’s recycling infrastructure.

This will increase the nation’s recycling capacity by over one million tonnes annually and create over 3,000 jobs, including more than 525 in Victoria.

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