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Cleanaway Waste Management Ltd (ASX:CWY) has launched a joint venture with LMS Energy Pty Ltd – a bioenergy and methane abatement company – which will facilitate the processing and commercialisation of landfill gas (LFG) at Cleanaway’s Lucas Heights landfill in New South Wales.
The JV will see LMS invest $46 million in the building of new bio-electricity assets, including a 22MW generation facility. This will replace the existing electricity generation infrastructure owned and operated by a third party.
Cleanaway’s contribution revolves around exclusive rights to the landfill gas at Lucas Heights for 20 years; both parties have an equal ownership share.
CEO and managing director Mark Schubert said the partnership was an important aspect of Cleanaway’s overall business plans.
“Optimising our landfill gas opportunity is a key focus area of our Blueprint 2030 strategy and is part of our Operational Excellence program of work,” he said.
“Today’s announcement is particularly rewarding, as it represents a meaningful step towards achieving our target of more than $50 million of EBIT in FY26 from the Operational Excellence program.”
The financial parameters for the project are expected to include incremental EBIT of approximately $5 million in FY25 and approximately $10 million in FY26, through the sale of landfill gas.
Beyond FY26, post full commissioning of the assets, assuming operating, and
regulatory conditions, the partnership is expected to deliver incremental EBIT of approximately $15M per annum.
Cleanaway shares rose after the news, and at 12:57 AEDT, they were trading at $2.69 – an increase of 0.55% since the market opened.
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