Seven new “rapid composting” units at heart of $6.5 million Southern Grampians push into DIY green waste

On Wednesday night, Southern Grampians Shire councillors unanimously approved a tender to establish an organics processing facility that would convert green waste and livestock exchange effluent into compost at Hamilton Transfer Station.

The new facility would be operated by GAIA Enviro Tech under a lease agreement, after an EOI process initiated 12 months ago saw the company selected as a feasible alternative to reduce green waste transportation costs and reliance on non-local facilities.

In recent years similar operations have been running in Ararat and Hepburn.

Council’s current green waste management system, which sees material transported to Camperdown for processing, and Hamilton Livestock Exchange (HRLX) effluent directed through a wastewater treatment system managed by Wannon Water, incurs an annual cost of $900,000.

Southern Grampians Shire Council Mayor Dennis Heslin said: “Over the past 18 months … [council] have engaged with various external parties to research alternative, sustainable waste processing options.”

"This proposal is consistent with our council sustainability strategy and our climate change plan," said Marg Scanlon, council's Director of Infrastructure and Sustainability. 

The facility will process approximately 6,000 tonnes of green waste annually, plus effluent from the Hamilton Livestock Exchange.

Maximum annual capacity of the facility will be 20,000 tonnes, leaving room for potential growth and accepting waste from other nearby councils.

Scanlon said the project would become "cost neutral to council" over the life of the lease term.

“We are looking to install seven enclosed in-vessel rapid composting units, with opportunity to increase the number of units as demand increases, and a large container where the composting process will occur,” she said. 

“By installing this infrastructure, over time we estimate achieving annual savings between $150,000 and $200,000, and creating a more sustainable management model for FOGO and green waste generally.”

The proposed arrangement includes a lease agreement for a period of seven years, with fees paid by the waste processing company to council of up to $6.5 million across the life of the deal. 

There is an option to terminate the contract after three years, should the initiative fail to demonstrate the projected financial and material returns to the council.

“We have the space at the Hamilton Transfer Station,” Heslin said. “So it makes a lot of sense to see what we can achieve right here within the Shire and start working on bringing more industry, and certainly innovative industry, to our region.”

The facility will produce compost to be sold and repurposed for council and community landscaping.

Councillor Jayne Manning said the project was "a win for the environment" where "we can make some money".

The project must be approved by the EPA before it can launch.