13/05/2003 - 22:00

Project start nears for GRD offshoot

13/05/2003 - 22:00

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PERTH company GRD is poised to become a major player in the waste management industry through its 50 per cent-owned Global Renewables. After many years of technical and commercial development, Global Renewables is on the brink of commencing its first UR-

Project start nears for GRD offshoot

PERTH company GRD is poised to become a major player in the waste management industry through its 50 per cent-owned Global Renewables.

After many years of technical and commercial development, Global Renewables is on the brink of commencing its first UR-3R treatment plant in Sydney.

The $70 million plant would process 175,000 tonnes of municipal waste per annum.

During the project’s second phase, likely in three to four years, the company will spend a further $21 million to expand capacity to 260,000 tonnes per annum.

Managing director John White said it would be the largest waste treatment plant in the southern hemisphere and would handle about 12 per cent of Sydney’s municipal solid waste.

The Sydney project would be a double win for GRD, since the wholly owned GRD Minproc would provide project management and engineering services.

Dr White said Global Renewables was actively pursuing a range of UR-3R opportunities around Australia and internationally.

This included being one of six short-listed companies for Mindarie Regional Council’s proposed $50 million waste treatment plant in Perth’s northern suburbs.

Paterson Ord Minnett analyst Rob Brierley said the Sydney plant would provide a boost to GRD’s future earnings.

“Once it’s up and fully running it should generate $18 to $20 million of revenue,” he said.

“It will be cash flow positive by a significant margin.”

The Sydney plant was expected to divert about 80 per cent of municipal solid waste from landfill.

It would feature mechanical recovery of recyclable materials, such as paper, glass and steel; percolation to clean the organic material; and composting and refining of the organic material.

The plant would also recover biogas for energy production, making it energy self-sufficient.

Funding for the Sydney project was coming from two sources.

Hastings Funds Management has agreed to invest $60 million in Global Renewables, giving it a 50 per cent stake in the company.

The Commonwealth Bank has also “essentially agreed” to a $70 million debt funding agreement, GRD said in its latest quarterly report.

Dr White said financial close was expected in a matter of weeks, which would trigger Hastings’ equity investment.

The company would then commence the one-year construction phase.

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