New Energy Corporation has finalised a deal with the City of Karratha that will result in waste from the Pilbara's two biggest cities being diverted to its $200 million waste-to-energy plant in Port Hedland, which is expected to be operational by the end of 2017.
Under the Karratha deal, which was first announced as a tender late last year, between 40,000 and 60,000 tonnes of residential and commercial waste will be diverted from Karratha landfills each year for the next 20 years.
The contract follows New Energy Corporation signing a similar deal with the Town of Port Hedland to supply waste to the facility, which will have the capacity to generate up to 18.5 megawatts of electricity and process between 70,000 and 130,000t of rubbish per year.
New Energy chairman Enzo Gullotti said the City of Karratha had demonstrated a commitment to sustainable waste management processes over the past six months since the tender award.
Mr Gullotti said residential waste, transfer station residue and cyclone clean up waste would be diverted from Karratha to the Boondarie waste-to-energy facility.
“New Energy will also take over the management of the landfill which will enable diversion of commercial and industrial waste,” he said.
“It will also result in a significant reduction in greenhouse gas emissions and generate crucial non-mining infrastructure local employment opportunities.”
The waste facility has been partly funded by the Clean Energy Finance Corporation, which provided $50 million for the project in June last year.
Construction on the plant is expected to start early next year, while a refuse recovery facility will be subsequently built.
Both facilities are expected to be established towards the end of 2017.
The Boodarie plant is uses technology operating in 46 locations throughout Europe and Asia, which has been developed over the past 20 years.
Energy is converted from waste using low-temperature gasification processes, which meet European Union air emissions standards, as well as WA Environmental Protection Authority regulations.
New Energy Corporation is also advancing plans to establish a materials recovery and waste-to-energy facility in the City of Rockingham.
