We granted a development licence to Prospect Hill International (PHI) Pty Ltd for a waste-to-energy facility at Lara, north of Geelong.
The development licence allows the company to design, construct and commission the facility under strict conditions and our oversight. Separate regulatory approvals will be required for the operation of the site when construction is completed to the required standards.
The first phase of works under the development licence is the preparation of detailed designs of the facility by the company. These detailed designs must be approved by us before the project can commence to the next phase.
Under the strict conditions we have placed on the development licence, PHI must obtain verification by an EPA-accredited environmental auditor and our approval at key phases. This ensures all environmental requirements are met. The company engages the auditor directly, with all auditors’ information reviewed by our team as part of the assessment and verification process.
We will continue to engage with the community throughout the project.
Our comprehensive, science-based assessment of Prospect Hill’s development licence application included many rounds of public consultation between March 2021 and July this year.
Read EPA’s assessment report for the development licence.
See Engage Victoria for an overview of the consultation process.
Appeals process
Reviews are an important part of the government’s system of transparency and accountability in regulatory decision making. There are two options for appeal of our decision to issue a development licence to PHI. The first is to Victorian Civil and Administrative Tribunal (VCAT) to do a merits review. The second is judicial review in the Supreme Court.
This matter is currently before VCAT for a merits review.
More information
A community meeting was held in Lara on Tuesday, 12 December 2023 to share our reasons for approving the development licence and answer questions.
Based on questions asked during this event, we have provided more information on the development licence granted to Prospect Hill International.
About development licences
A development licence is issued by us under section 69 of the Environment Protection Act 2017 (the Act).
We assess development licence applications to ensure the requirements of the Act are met.
This kind of licence allows for the design, construction and modification stages of a project. It does not approve ongoing operations, which are subject to a separate operating licence.
An EPA operating licence allows for the operation of the facility. The facility is operated to approved standards. This includes:
- waste monitoring and auditing
- plant thermal performance
- emission monitoring and reporting
- residual waste management.
Development licence assessment process
The decision to issue PHI a development licence followed:
- community engagement in line with our Charter of Consultation
- assessment of the best available science
- technical reviews of similar facilities across the world
- application of the Act.
We do not only rely on information provided. Applications are reviewed by our own scientists. They assess all potential risks to human health and the environment.
Development licence conditions
We placed strict conditions on the development licence.
PHI must:
- Develop and implement a community engagement plan. This must occur before construction, and for the lifespan of the project, to ensure the Lara community is kept up to date.
- Use the best available technique and technology. It must meet internationally recognised environmental performance standards both design and construction.
- Obtain independent environmental auditor review and our approval at each phase of detailed design, construction and commissioning of the facility.
- Report on emission monitoring and make results public.
- Put in place management controls for noise, odour and residual waste.
Regulating the development licence
We will regulate the site through the 3 phases of design, construction and commissioning.
This will ensure the company:
- meets all performance standards
- keeps the community informed
- complies with all conditions of the development licence.
Each phase requires an independent auditor to verify compliance as well as EPA approval. Without this, it cannot progress to the next phase.
If conditions of the development licence are not met, we have the authority to require the decommissioning of the site. This means ensuring the land is left in the same state it was before the facility was built.
Separate approvals are required to operate the facility when construction is complete and all requirements of the development licence have been met.
Other approvals required
A range of approvals and review must be completed before it can proceed further. This includes planning permission from the Minister for Planning.In addition, PHI will only be able to operate the facility, if it gets a licence from Recycling Victoria under the waste- to-energy cap.
Decision considerations
Climate change
As part of the assessment, we considered the Climate Change Act 2017. This required us to look at climate change mitigation measures. Greenhouse gas (GHG) emissions are assessed by an assessment tool called the Greenhouse Gas Inventory.The Inventory showed this site may avoid up to 370,000 tonnes of carbon dioxide entering the atmosphere. This is because it generates its own power, avoiding emissions from burning coal. It will also avoid 7.5 million tonnes of Green House Gas (GHG) emissions over a 25-year lifespan due to diverting waste from landfill.
We also required the applicant to provide an updated inventory at the detailed design stage. This will need to be in the form of a life cycle analysis.
Air quality
Our scientists have reviewed the air emissions modelling and assessments submitted as part of the application.
They also conducted a thorough review of the latest technical and scientific literature on similar waste-to-energy facilities in Europe and the United Kingdom. International studies have shown minimal to no impacts on health from waste-to-energy air emissions.
There are several methods to control air emissions for a waste-to-energy facility. These include bag filters and numerous intervening engineering controls to capture air emissions. The proposed controls for this site align with best practices in terms of international standards.
The controls in place also include continuous air emission monitoring, which PHI is required to publish live on its website.
Human health
The way we define health risks is based on the rules in the Act. The objective standard for determining what makes a risk low is to look at all indicators around human health and all potential sources of harm.
Our scientists conducted air quality and human health risk assessments that found the risk to human health to be low and acceptable.
The assessment and modelling process, which is used to evaluate health impacts, considers issues such as:
- faulty machinery
- peak operating times
- unexpected operating conditions.
The application considered operational facilities in the UK and around the world. All assessments came to the same conclusion.
They were unable to determine any significant impact from those facilities to human health.
Acceptable waste
Waste that will be used as feedstock for this site is residual municipal waste that could only go to landfill. This means other sources, such as organics, re-use or recycling would not be accepted.
Waste to energy is the final opportunity to get value from material that would otherwise go to landfill. Waste must also come from Victoria. Waste from interstate and oversees will not be accepted.
PHI is required to run a waste characterisation process for 12 months. This means they must confirm the waste composition and waste source.
Community engagement
Our decision followed broad community engagement. We considered all submissions made during the 3 rounds of public consultation and are aware of public opinion.
The decision is made after thorough consideration of all available evidence. This includes but is not limited to community views. We must adhere to the legal framework throughout this process. We placed a condition on the development licence requiring PHI to develop and implement a community engagement plan for the life of the project. This is to ensure residents are kept up to date. This plan is required at the detailed design phase, before construction begins.
We will continue to engage with the community on this project.
Stay informed
If you’d like to stay informed about the progress of this project and future engagement opportunities, please subscribe to our mailing list.
Reviewed 5 February 2024
