Waste to Energy Fund: Bioenergy – Stream 1: Project development

Sustainability Victoria (SV) supported bioenergy project developers through the Waste to Energy Fund: Bioenergy (the Fund). $10 million was available to support the sector to increase renewable energy generation in Victoria.

The funding was available through two streams:

• Stream 1: Project development – supported applicants to scope, test, and gain approvals to achieve pre-construction and pre-financial close phases of a bioenergy project. This page is about Stream 1.
• Stream 2: Project infrastructure – supported applicants with a proven business case in the purchase, construction, and commissioning of infrastructure to convert organic matter to bioenergy. Read more about Stream 2.

This grant program was funded through the government’s circular economy policy, Recycling Victoria: a new economy.

The following are the guidelines for Stream 1 of this fund.

Fund overview

Fund objectives

Projects were required to meet one or more of the following objectives:

• increase the production of bioenergy in Victoria
• increase the diversion of organic material from landfill
• increase abatement of greenhouse gases
• increase business opportunities, economic development, and beneficial use of pathways across the bioenergy supply chain.

The Fund aimed to achieve the following outcomes:

• increase the capacity of Victoria’s renewable energy generation
• increase in the amount of organic material diverted from landfill
• decrease greenhouse gas emissions
• purchase, install, and commission bioenergy infrastructure
• increase local employment
• develop realistic feasibility studies and business cases
• develop market pathways for bioenergy end products
• develop and analyse the feedstock market network
• develop clear regulatory and approval pathways.

Funding available

For Stream 1, each project could receive a grant of between $20,000 and $250,000 (ex. GST).

For Stream 2, each project could receive a grant of between $50,000 and $1 million (ex. GST). Read more about Stream 2.

Co-contribution

Applicants were required to contribute at least $1 for every $1 requested.

The following groups were required to contribute $1 for every $2 requested:

• Not-for-Profit organisations or Charities
• Community Groups
• co-operatives
• research institutes.

Co-contributions were required to be financial (cash). In-kind contributions are not permitted in this Fund.

Funding conditions

Successful applicants approved for funding were required to do the following.

Before starting the project

• Participate in an inception meeting to discuss their project and the funding agreement.
• Agree to realistic evidence-based and performance-based milestone payments.
• Provide Sustainability Victoria with insurance certificates of currency.
• Sign Sustainability Victoria’s funding agreement within 30 days of approval.
• Provide a project plan.
• If funding of more than $250,000 is awarded, plan for capital works signage.
• If the project is in regional Victoria, and is given funding of at least $1 million, meet Local Jobs First requirements.

During and after the project

• Deliver the project as outlined in the application and comply with the funding agreement.
• Contribute to regular project progress updates or meetings.
• Notify Sustainability Victoria immediately about any delay or change to the project.
• Provide update reports to Sustainability Victoria at agreed milestones with evidence of expenditure, progress and performance.
• Provide adequate monitoring and evaluation of the project according to the funding agreement.
• Collect and release data to Sustainability Victoria. Sustainability Victoria may share or report on the data.
• Contribute to the project’s promotional activities (for example, provide Sustainability Victoria with support by reviewing and approving written stories or videos).
• Participate in and contribute to Sustainability Victoria activities to distribute the findings to broader stakeholders (for example, government and industry).
• Acknowledge that Sustainability Victoria has contributed funding in all communications related to the project.

Timeline

Dates may change.

Applications open: Friday 1 July 2022

Applications close: Friday 26 August 2022

Information session: Tuesday 12 July 2022

Notification of outcome: Expected January or February 2023. We will provide applicants with updates as often as possible and when necessary.

Funding agreements established: April 2023

Projects commenced by: May 2023

Project completed by: 31 March 2025

Why the Victorian Government provided this funding

The Fund was released as part of the Victorian Government’s circular economy plan Recycling Victoria: a new economy and represents the critical role that bioenergy facilities will play in the generation of renewable energy and the management of waste resources. Funding is essential to attract early adopters and increase investment in this space, to expand the capacity of the market.

In July 2016 Sustainability Victoria introduced the $2.33 million Waste to Energy (W2E) Infrastructure Fund to increase government intervention and collaboration to support food waste recovery and reduce greenhouse gas emissions. In 2019, this approach was adapted and the Bioenergy Infrastructure Fund was announced. This fund broadened the scope of eligible projects to include support for feasibility studies and business case development.

In February 2020, the Victorian Government announced a $10 million waste to energy support package as part of Recycling Victoria: a new economy. A key commitment of this action plan is to halve the volume of organic waste going to landfill by 2030. Anaerobic digestion is considered a priority for investment in supporting waste to energy infrastructure development.

The Fund aimed to support the development of innovative bioenergy projects and business models to enable the implementation of best-practice infrastructure that builds capability and capacity in Victoria’s bioenergy sector.