Cleanaway collaborates for landfill gas monetization

Cleanaway Waste Management (ASX:CWY) has partnered with LMS Energy Pty Ltd to form a joint venture aimed at processing and monetizing landfill gas at its Lucas Heights landfill. LMS Energy will invest approximately $46 million to develop bio-electricity facilities, including a 22MW generation plant. The joint venture will be equally owned by both parties, with Cleanaway securing exclusive rights to landfill gas for 20 years.

Strategic goals and future outlook

The joint venture between Cleanaway Waste Management and LMS Energy is a key element of Cleanaway's Blueprint 2030 strategy, which focuses on optimizing landfill gas opportunities to bolster its Operational Excellence program. The initiative is expected to generate significant EBIT contributions in the coming years, aligning with Cleanaway's ambition to achieve over $50 million EBIT from its Operational Excellence program by FY26. The partnership underlines Cleanaway's dedication to reducing greenhouse gas emissions and promoting sustainable practices, while also enhancing shareholder value. As Australia's leading waste management company, Cleanaway continues to leverage its core assets to drive growth and sustainability, ensuring a sustainable future for all stakeholders.

Executive insights on the joint venture

The initiative supports Cleanaway's commitment to reducing greenhouse gas emissions while enhancing shareholder returns. The joint venture is expected to contribute incremental EBIT of approximately $5 million in FY25, $10 million in FY26, and $15 million per annum beyond FY26 after full commissioning of the assets.