Cleanaway inks deal with Viva Energy to launch innovative plastics recycling initiative in Australia

AUSTRALIA – Cleanaway and Viva Energy have reached a major milestone in their push to revolutionize plastics recycling, having completed the initial assessment for a proposed advanced soft plastics recycling facility.

The initiative, described as the first in Australia, aims to tackle one of the country’s most problematic waste streams with innovative circular economy solutions.

The two companies have formalized their collaboration through a memorandum of understanding (MoU) and will now embark on a detailed feasibility study.

This next phase will examine the project’s technical and financial viability, with a focus on waste sorting and the conversion of soft plastics into pyrolysis oil—an essential feedstock for the production of new plastics.

The feasibility stage will last a year and include rigorous engineering assessments, drawing on expertise from specialist technology and engineering consultants.

A key deliverable from this process will be a unified facility design and a clearer picture of the required investment and associated construction costs.

The front-end engineering and design (FEED) phase will begin in 2026, although its timing will depend on regulatory developments.

 Specifically, the project’s progression hinges on final decisions surrounding Australia’s evolving packaging legislation, including changes under the Extended Producer Responsibility (EPR) scheme.

The Australian government committed to packaging reform in 2022, signalling a move towards mandatory requirements for recycled content, tighter safety standards, and restrictions on hazardous materials.

These reforms are designed to reduce environmental impacts and align Australia’s packaging practices with global standards.

The Department of Climate Change, Energy, the Environment, and Water conducted public consultations that revealed strong support for the EPR framework.

The scheme is expected to reinvest collected revenues into the recycling and manufacturing supply chain, providing certainty for investors and encouraging innovation among domestic producers.

Cleanaway’s Executive General Manager of Strategy, Mergers, and acquisitions, Frank Lintvelt, emphasised the initiative’s importance: “We are looking to establish a pathway to a fully circular solution for soft plastics in Australia.

“Soft plastics are high in our conversations with municipal and commercial customers looking for sustainable outcomes for this problematic waste stream.”

He added, “Cleanaway is uniquely positioned to leverage its national collection and processing footprint to deliver a solution at scale, together with Viva Energy.”

The partnership signals a transformative shift in how soft plastics could be handled in Australia, positioning the country as a future leader in advanced recycling innovation.

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