Australian Paper says it will proceed with its plan to use kerbside rubbish to help power its Maryvale paper mill after completing the project’s feasibility study.
The company will develop the $600 million plant in partnership with waste management company Suez at the Latrobe Valley mill, east of Melbourne.
The plant will generate 225 megawatts of electricity and divert 650,000 tonnes of Gippsland and Melbourne rubbish from landfill.
The company is working with Suez to secure 25-year contracts with Melbourne councils to supply the plant.
Australian Paper plans to secure the contracts by early 2020 and begin construction later in the year.
The plant is expected to open in 2024.
The project will create jobs in the Latrobe Valley, which was hit by the closure of the Hazelwood Power Station in 2017.
Modelling shows over the three-year construction period the project would support just over 1040 jobs per annum and once the plant begins operation it would support just over 900 jobs.