Organics processing procurement

Increasing the recovery of organic waste is one of four key strategic objectives set down in the Metropolitan Waste and Resource Recovery Implementation Plan.

To achieve this objective an organics processing network to divert Melbourne’s organic waste from landfill has been developed through collective procurement contracts in the North West, South East and East.

Collective procurement for organic waste processing secures significant, aggregated waste volumes that encourages industry to invest in best practise processing facilities. This results in maximised economic outcomes as well as reduced environmental, community and public health impacts.

Melbourne’s organics processing network provides organics processing facilities that will have the potential capacity by 2019 to divert over 520,000 tonnes a year of food and garden waste (from both household and commercial/industrial sources) from landfill.

The Back to Earth Initiative supports these new organics processing facilities by raising community understanding of council kerbside organic recycling.


Catchments for organics procurement: (click on image to enlarge)

Procurement catchments



North and West

The Northern and Western Organics Processing Contract involves 11 metropolitan councils: Banyule, Brimbank, Darebin, Hobsons Bay, Hume, Maribyrnong, Melton, Moonee Valley, Moreland, Nillumbik and Wyndham. Veolia Environmental Services has the contract to process organic waste collected from these council areas until 2028.

Veolia has constructed Victoria’s largest and most technologically advanced organics composting facility at Bulla capable of processing 85,000 tonnes of organic waste a year. Another Veolia site at Werribee is being used as a green waste transfer station to process a further 35,000 tonnes of organic waste a year.

The North West contract has the capacity to process 120,000 tonnes of organic waste per annum.

South East

The South East Organics Processing Contract involves eight metropolitan councils: Bayside, Cardinia, Casey, Frankston, Glen Eira, Greater Dandenong, Kingston and Monash.

Three companies share the contract to process organic waste collected from these council areas until 2032. They are Cleanaway Pty Ltd, Veolia Environmental Services Pty Ltd and Sacyr Environment Australia Pty Ltd.

  • Cleanaway will receive organics at Victory Road, Clayton until the end of 2018. From then onward, it will receive organics at a new state-of-the-art transfer station at Ordish Road in Dandenong South. Both facilities will shred, consolidate and transfer material for off-site composting at Dutson Downs in East Gippsland.
  • Veolia have constructed an in-vessel processing facility at Ordish Road, Dandenong South, as well as remote facilities to meet projected demands for the 15 year contract period.
  • Sacyr are constructing a new, fully-enclosed, in-vessel aerobic composting and maturation facility in Villas Road, Dandenong South, capable of processing up to 120,000 tonnes of organic waste per annum. This facility is expected to be operating from August 2019.

The South East collective contract has the capacity to process 280,000 tonnes of organic waste per annum when the above facilities are in operation.


The Eastern Organics Processing Contract provides for the receival and processing of organic waste from five eastern councils - Knox, Manningham, Maroondah, Whitehorse and Yarra Ranges.

The preferred tenderers for this contract are Van Schaiks Bio Gro Pty Ltd and Enviromix Pty Ltd. (The status of ‘preferred tenderers’ is given to the selected companies until any required local government planning approval and or EPA works approvals have been granted. The contractual arrangements will only be finalised once these approvals are in place).

  • Bio Gro proposes to receive organics at its transfer station in Dandenong South and transfer the material to Dutson Downs in East Gippsland for open windrow composting
  • Enviromix proposes to process material from transfer stations to its open windrow and enclosed aerated bunker facility at Stanhope.  

This collective contract has the capacity to process 120,000 tonnes of organic waste per annum.

Last updated: 02/10/2018