New South Wales secures US$7.9M to expand hard-to-recycle plastics infrastructure

AUSTRALIA – New funding from the Australian and New South Wales governments is set to strengthen recycling capacity for hard-to-process plastics, with A$11.2m (US$7.87m) allocated to two regional projects aimed at diverting tens of thousands of tonnes of waste from landfill each year.

The joint investment forms part of broader national and state efforts to build a more resilient plastics circular economy, expand domestic processing capacity and support regional manufacturing and employment.

The largest share of funding A$9.1m (US$6.39m) has been awarded to iQRenew in Kundle Kundle on the Mid North Coast.

The facility will undergo plant upgrades enabling it to sort and process up to 10,000 tonnes annually of household-sourced soft plastics, a stream historically plagued by limited domestic recycling options.

The upgraded operation is expected to produce recycled resin suitable for a range of applications, including packaging components and durable construction materials such as fence posts, bricks and outdoor furniture.

In Tamworth, a new recycling facility backed by Tamworth Regional Council and 11 neighbouring councils will receive A$1.9m (US$1.33m).

The site is designed to process approximately 7,000 tonnes per year of hard-to-recycle plastics, including crates and pallets, converting them into materials for remanufacture.

Both projects are forecast to generate construction and long-term operational jobs, reinforcing the role of recycling infrastructure in regional economic development.

Backed by national modernization fund

The A$11.2m package is equally funded through the NSW Government’s Waste Less Recycle More initiative and the Australian Government’s Recycling Modernization Fund, which has committed more than A$200m (US$140.52m) to upgrading recycling infrastructure nationwide.

With co-investment from states, territories and industry, the fund is expected to leverage close to A$1bn (US$ 702.59m) in total investment.

In NSW alone, 38 additional projects have secured joint government support totalling A$43.1m (US$30.28m).

These initiatives are projected to add more than 175,000 tonnes of annual recycling capacity, signalling a broader push to reduce landfill dependence and strengthen domestic reprocessing markets.

Policy pressure drives capacity build-out

Australia’s recycling rates for soft and mixed plastics remain comparatively low, and landfill constraints, particularly around Sydney, have intensified calls for improved infrastructure.

Planned bans and phased reductions of certain single-use plastic items have further increased pressure to ensure viable end-of-life pathways for remaining plastic streams.

Industry experts note that facilities capable of converting mixed and soft plastics into high-quality secondary raw materials are central to meeting circular economy targets and long-term regulatory goals.

The latest funding round underscores how federal and state governments are seeking to align environmental objectives with industrial strategy, positioning advanced recycling as both a waste management solution and a driver of regional manufacturing growth.

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