The Hume Recycling Plant: A Costly Endeavor | Region Canberra
An artist's impression of the new recycling facility in Hume. Image: ACT Government.
The cost of the new recycling plant, set to replace the one destroyed by the 2022 Boxing Day fire, has risen to nearly $37 million, an $11 million increase from the initial estimate. The new Materials Recovery Facility (MRF) was initially projected to cost $26 million, jointly funded by the ACT and Federal governments.
The revised figure is detailed in the development application now available on the Planning website. The additional cost is being covered by Veolia, the waste management giant, who secured an $850 million deal with the ACT Government in January 2025 to design, construct, and operate the state-of-the-art MRF.
Under the contract, Veolia will manage the plant for 20 years.
A government spokesperson explained that the project is being executed through a Build-Own-Operate-Transfer model, with Veolia financing the delivery phase costs. The $26 million figure represents the Capital Contribution the Territory is making during the delivery phase, including the Commonwealth's contribution, not the total cost.
The spokesperson added, "The remaining overall delivery phase cost will be funded by Veolia. In return, the Territory will provide monthly service payments to Veolia during the 20-year operating period, covering both operating and capital cost recovery."
The construction cost in the development application pertains to the facility's construction and essential services fit-out, excluding plant and equipment. The new recycling facility is expected to commence construction in 2026, subject to planning approvals.
The spokesperson assured that the project remains on track for operational readiness in 2028.
The DA for the new MRF, to be built on the site of the previous MRF in Hume, encompasses the construction of processing and support buildings, landscaping, internal access roads, and essential infrastructure. It also includes an education building for community and school visits, a car park, three verge crossovers, an internal driveway, landscaping, earthworks, and utility works.
The total cost is listed as $36,972,799.
The new facility will employ advanced technology to sort paper and cardboard, glass, plastic, steel, and aluminum, enhancing recovery rates and producing higher-quality recyclable materials. This technology includes a glass purification plant, sophisticated automatic recognition systems, screens for paper separation, laser optical identification with air jets for plastics, and powerful magnets for metal extraction.
The government asserts that the new MRF will process up to 115,000 tonnes of mixed recyclables annually, a significant increase from the previous facility's capacity of up to 65,000 tonnes per year.
Currently, the ACT sends 46,000 tonnes of mixed-use recyclables interstate for processing annually.
The facility has been meticulously designed with state-of-the-art fire detection, mitigation, and control systems to prevent future incidents like the 2022 blaze, which was caused by lithium battery ignition.
The Hume site was cleared from September last year, with the demolition of fire-damaged buildings taking several months. The project will create over 100 jobs during construction and an estimated 24 permanent roles post-completion.
The MRF project has sparked controversy, with the Canberra Liberals questioning the business case's viability last year. They argue that recycling facilities interstate would be more cost-effective and efficient. However, the government refutes this, asserting that the Liberals have misrepresented the business case.
The DA is open for public comments until March 10th (https://www.planning.act.gov.au/applications-and-assessments/development-applications/browse-das/development-application-details?da-number=202644904&amendment-version=).
