Australian Paper and SUEZ have joined forces with Sumitomo Mitsui Banking Corporation (SMBC) as an important next step towards a $600 million Energy from Waste (EfW) facility in the Latrobe Valley, appointing the company as financial advisor to the project.
Australian paper general manager corporate development David Jettner said as financial advisor, SMBC will provide specialised support for project development and establish debt financing facilities as they seek to build a missing link in Victoria’s waste management infrastructure.
“We are now moving forward to secure waste through the Metropolitan and Gippsland Waste and Resource Recovery Groups tendering processes, establish contractual Engineering, Procurement and Construction arrangements and arrange funding for our project,” Mr Jettner said.
“SMBC will play a vital role in helping us to successfully navigate our way through these processes. They will also provide sectorial experience to the project as the Mandated Lead Arranger with 15 successful EfW projects internationally including the Kwinana EfW project in WA.
“Currently less than one per cent of Australia’s residual waste is used for energy recovery and landfill remains the only option for household waste from South East Melbourne and Gippsland. With the closure of the Hampton Park landfill by 2025, our project would provide a vital solution to S.E. Melbourne’s impending waste management crisis.”
Australian Paper is one of the Latrobe Valley’s largest employers, supporting almost 2400 jobs in the region. The EfW project would reduce Australian Paper’s reliance on imported gas and electricity, stabilise its energy future and support ongoing investment at the Maryvale site.
Read more about the project here.