Plans for Australia’s first large-scale advanced soft plastics recycling facility are a step closer, after Cleanaway and Viva Energy successfully completed their pre-feasibility study for the project.
The collaboration will see the conversion of soft plastics into food-grade recycled plastics using Cleanaway’s collection infrastructure and Viva Energy’s refining and polymerisation capabilities.
The two companies signed a Memorandum of Understanding on 3 April 2025, which will see the project move to a full feasibility study – the next key step in delivery of the project.
The partners will be undertaking a 12-month feasibility and engineering study for both the sorting of the plastic and its transformation into pyrolysis oil.
This will involve engaging with technology providers and engineering support to develop an integrated concept design and provide greater clarity around the capital and delivery costs.
The front-end engineering and design phase is expected to start in 2026, once details of the Australian government’s packaging reform, the Extended Producer Responsibility (EPR), have been finalised.
Frank Lintvelt, Cleanaway’s executive GM of Strategy, Mergers and Acquisitions, said collection of soft plastics from households and commercial customers, and the successful injection of feedstock made from these recycled plastics into the refinery had already proven the technical viability of key elements of the project.
“We are looking to establish a pathway to a fully circular solution for soft plastics in Australia,” Lintvelt said.
“Soft plastics are high on the list in our conversations with municipal and commercial customers looking for sustainable outcomes for this problematic waste stream.
“Cleanaway is uniquely positioned to leverage its national collection and processing footprint to deliver a solution at scale together with Viva Energy.”
Lachlan Pfeiffer, chief strategy officer at Viva Energy, said he had been encouraged by strong engagement from both government and industry, which has given the company the confidence to proceed to the next stage of the project.
“There is a clear need and appetite for this infrastructure in Australia, driven by growing recognition of the need for a domestic circular solution to the soft plastic challenge,” Pfeiffer explained.
“This is another example of Viva Energy expanding the diversity of feedstock being utilised through the refinery as we continue to navigate a new pathway for the future of this critical infrastructure.
“Ours is the only Australian refinery with a polypropylene plant, so Viva Energy will have a critical role to play in establishing a fully closed loop to transform waste plastics into new food-grade plastics in this country.”
The Australian government announced in 2022 that it would be reforming packaging regulation, with mandatory obligations on packaging design, recycled content and the removal of harmful chemicals.
Feedback from the public consultation last year by the Department of Climate Change, Energy, the Environment and Water (DCCEEW) demonstrated strong engagement, and a preference from industry and community to support the creation of a mandatory EPR scheme for packaging where revenue funds are reinvested into the packaging supply chain.
The EPR scheme for packaging and soft plastics will give all stakeholders confidence to invest and will incentivise brands to ensure packaging design is compatible with the recycling process and in line with international best practice.
