On Monday 14 August 2023, Council resolved to terminate the West Nowra Resource Recovery Park Stages 1 and 2 Project Agreement with Bioelektra Australia Pty Ltd, effective immediately.
Council will now progress consideration of options for future waste management strategies and will share information with the community on the decisions made.
A project to deliver a state-of-the-art facility capable of diverting over 90% of mixed waste from landfill was initiated with Bioelektra Australia and construction started early 2022. Under the agreement, Bioelektra Australia would construct and operate the facility.
On 15 June 2023, Council was notified that the creditors of Bioelektra Australia Pty Ltd placed the company into liquidation. Council is currently working through the legal process as part of its ongoing due diligence in respect to this project.
Waste processing is continuing as usual with no disruption to kerbside collection services or waste management across the Shoalhaven LGA.
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14/08/2023 - On Monday 14 August 2023, Council resolved to terminate the West Nowra Resource Recovery Park Stages 1 and 2 Project Agreement with Bioelektra Australia Pty Ltd, effective immediately. Council will now progress consideration of options for future waste management strategies and will share information with the community on the decisions made.
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15/06/2023 - Council is advised that the creditors of Bioelektra Australia Pty Limited has placed the company into liquidation and that Mr Trent Devine of Jirsch Sutherland is the liquidator. Council will consider the options available to it for the delivery of the resource recovery facility in due course.
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26/05/2023 - The winding up application was adjourned to 16 June 2023, the Court noting that a Second Meeting of Creditors is due to be held by no later than 15 June 2023. We now await further advice from the administrator as to the progress of the administration and the proposed deed of company arrangement (DOCA).
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25/05/2023 - The first meeting of creditors was held on Monday this week. At the meeting, Trent Devine was formally appointed as Administrator, and a Committee of Creditors was not formed. The Administrator is now proceeding to deal with the winding up hearing listed for this Friday.
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23/05/2023 - At the ordinary meeting on the of Council 22 May 2023 Council resolved MIN23.267 as follows. A copy of the report is provided in the related document section of this Project Page.
RESOLVED (Clr Ell / Clr Findley) MIN23.267
That Council:
1. Note the update on the Shoalhaven Resource Recovery Facility following Bioelektra’s announcement that it was going into voluntary administration, in particular:
a. The facility is to be majority funded approximately $100 million by Bioelektra and $10 million for Shoalhaven City Council, built, and operated by Bioelektra Australia.
b. Bioelektra is NOT managing Council’s domestic waste collection contract.
c. Council is not party to the commercial dispute between Bioelektra and its contractor and subcontractors.
d. During the operational phase of Bioelektra’s facility, Council will pay Bioelektra, as the operating contractor of the facility, a fee for each tonne of household waste deposited at the facility. This fee is anticipated to be less than the cost to landfill Council’s waste.
e. The collection of the kerbside red lidded bin, provided by Veolia, continues as business as usual. There will be no disruption to the kerbside collection process.
f. On 9 May 2023, Council was advised by the Bioelektra Managing Director that the company had been placed into voluntary administration. On 11 May 2023 Councillors received a briefing on this development and the fundamentals of the administration process from Maddocks Lawyers (the firm that assisted Council develop the contract with Bioelektra).
g. On a best-case scenario, Bioelektra will continue to trade and Council will not be required to take any contractual steps.
h. On a worst-case scenario, while Council will have expended $2 million under the existing contract in relation to Biolektra meeting milestones 1 & 2 being, 1. Final design documentation and development consent, and 2. Ancillary activities completed to clear the land, it could terminate the contract and retender.
i. Council has committed some funding for the initial infrastructure including site clearing, roadworks, fencing and fire and water control infrastructure
j. Council held extensive discussions with the EPA during and since the tender process and is satisfied that the Bioelektra process aims to divert 95% of waste which would otherwise have gone to landfill which will assist Council in exceeding the relevant targets specified in the Waste and Sustainable Materials Strategy (WASM) for 2041.
2. Continue to receive briefings in relation to developments that are pertinent to the administration process, and Council’s website will be updated with relevant information as it comes to hand.
For: Clr Findley, Clr Kotlash, Clr Norris, Clr Butler, Clr D'Ath, Clr Copley, Clr Ell, Clr Christen, Clr White, Clr Wells, Clr Watson, Clr Kitchener and Clr Gray
Against: Nil
CARRIED
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13/04/2023 - The principal contractor to Bioelektra, EQ Constructions, has advised they are no longer available to complete Stage 1 Works at the West Nowra site. This development has Bioelektra re-tendering to finish the Stage 1 construction works, which are largely complete. Bioelektra Australia’ s Managing Director, Fred Itaoui, released the following statement:
“The construction works at our West Nowra Resource Recovery Facility are currently at a standstill due to the collapse of the builder EQ Constructions. Bioelektra has put out a tender to appoint anothe builder to complete the construction works of the facility. This unfortunate event has regrettably hindered the construction programme by at least 3 months.”
Once the new contractors are appointed, Council looks forward to watching this exciting development take shape.
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18/01/2023 - Stage 1 works for the new Resource Recovery Facility (RRF) include demolition, clearing, levelling, installation of subbase, construction of sediment control ponds, fencing, retaining wall and carpark. These works have been significantly affected by the excessively wet weather throughout 2022. At the start of 2023 an estimated 85% of the stage 1 works is complete, with the retaining wall and car park to be constructed over the next 2 months.
Stage 2 works include the foundations, building, ancillary roadworks, weighbridges, drainage, services and installation of the processing equipment. Stage 2 works will commence in April 2023. We anticipate seeing the building coming out of the ground by mid-year.
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25/03/2022 - The future of waste management has arrived! Council celebrates the commencement of works to construct the new Resource Recovery Facility (RRF).
The Shoalhaven landfill is fast approaching capacity. Council proactively undertook an extensive process of consulting with industry experts to find an economically and environmentally sound solution to reduce the need for landfill. This Australia first technology is expected to extend the life of the West Nowra landfill for another 50 years.
Bioelektra Australia has received development consent for the Resource Recovery Facility from NSW Planning. The facility will use advanced processes to recover and recycle as much household waste from the red bin as possible. Construction of the facility has now commenced.
This system is far superior to any other currently operating in Australia.
The RRF will be funded, built and operated by Bioelektra Australia and aims to be fully operational by late 2023. It will provide around 200 jobs during the construction phase and ongoing job opportunities for over 30 people.