Cleanaway, an Australian waste management company, has formed a joint venture with LMS Energy to produce electricity from gas at its Lucas Heights landfill in southern Sydney. LMS Energy, a company focused on bioenergy and methane reduction, will invest $46 million to build a new 22MW electricity generation plant, replacing the existing infrastructure operated by a third party.
As part of the deal, Cleanaway will provide exclusive rights to the landfill gas at Lucas Heights for the next 20 years. Both companies will have equal ownership in the venture.
Cleanaway expects the joint venture to bring in additional earnings of $5 million in the 2025 financial year and $10 million in 2026, mainly from the sale of landfill gas and the services provided by the joint venture. After the new facilities are fully operational, the company anticipates earning an extra $15 million each year, assuming current operating conditions remain unchanged.
According to Cleanaway CEO Mark Schubert, this is the most significant move undertaken in the company’s strategies as it strives to have enhanced operations and emissions reduced. He added that this joint venture shall help Cleanaway hit earnings in excess of $50 million from its improvements in its operations by 2026.
The joint venture is still pending approval from relevant third parties.
