Energy-from-waste inquiry recommends moratorium on proposed incinerators

A New South Wales parliamentary inquiry into energy-from-waste facilities has recommended that the state government reject plans to burn Sydney's waste in regional communities.

The select committee on proposed energy-from-waste technology made 22 recommendations after holding seven hearings across 2025 and 2026. The committee recommended that development applications to build incinerators in Tarago near Goulburn and Parkes be knocked back.

The chair of the committee, Nationals MLC Nichole Overall, told NSW parliament it was clear the technology was not appropriate to be built in the communities.

"Given the absence of numerous critical elements, significantly the lack of social licence and community acceptance including from local councils and Aboriginal land councils," Ms Overall said.

Environment Protection Authority regulations limit the construction of energy-from-waste facilities to four locations in NSW: Tomago, West Lithgow, Parkes, and the southern Goulburn-Mulwaree precinct.

"The government, proponents and advocates state that these facilities are safe wherever they are located," Ms Overall said.

"Yet they are restricted solely to regional areas whether they like it or not."

Critical waste problem

Existing landfill capacity in Greater Sydney is expected to be reached by 2030, with advocates for incinerators highlighting the technology as a potential solution.

The scoping report for the proposed $1 billion Parkes Energy Recovery facility in the New South Wales central west was published by the NSW Planning Department on Tuesday.

A sign shows opposition to the proposed Parkes waste-to-energy facility.

If approved, the site would have capacity to process 732,000 tonnes of waste per annum by thermally treating household and industrial rubbish.

Almost all of the waste processed would be transferred by rail from Sydney to the site, before being converted into up to 80 megawatts of base load power daily.

Ms Overall said the committee heard from residents in opposition to the development throughout the hearings.

"Waste is best managed as close to its source as possible," she said.

"Transporting hundreds of thousands of tonnes of metropolitan waste to regional facilities, hundreds of kilometres away adds to cost, emissions and impacts."

Supported by locals

Parkes resident Erik Lensson welcomed the committee's recommendation for the state government to reject the incinerator proposal.

"It is entirely unsuitable," he said.

"Burning red bin waste from the big city and throwing it over the fence to the countryside is just a total cop out."

In a statement, Parkes Energy Recovery director Ed Nicholas said while the technology is new to Australia, it has been embraced in developing countries around the world.

"It's a pity that the inquiry wasn't able to visit an operating facility as part of their investigation," Mr Nicholas said.

"Had they done so, they would have seen for themselves how best-practice facilities, such as the one we are proposing for Parkes, work in both rural and urban areas to strict environmental standards."

"We are committed to listening to feedback … and demonstrating the real benefits this project can bring at every stage."

Veolia is proposing to process 380,000 tonnes of non-recyclable waste from Sydney each year at the company's existing Woodlawn site near Tarago.

If approved, it would generate enough electricity for up to 40,000 homes.

The proposal is before the NSW Planning Department and is awaiting a response to submissions from Veolia.

Recommendations handed down

The committee also recommended a moratorium on all waste-to-energy proposals and an independent review of the four precincts designated for the technology.

The report also recommended that a minimum buffer be maintained from proposed waste-to-energy facilities to ensure "safe and appropriate distances from food production, schools and hospitals".

Ms Overall said the suitability of incinerators needed to be examined further.

"Those supportive of the proposed thermal waste-to-energy technology provided information and examples of its safe operation … and outlined commitments to stringent best practice regulation," she said.

"The committee is concerned with the expectation for proponents to be the ones ultimately responsible for engagement, dissemination or information and consultation."

Committee member and Labor MLC Emily Suvaal criticised some of the recommendations.

"A moratorium on energy-from-waste is not possible without viable alternatives in place," she said.

"The technology can be safe when managed with strong guidelines and standards, as it is in NSW and globally."

The NSW government is required to respond to the committee's findings by January 20, 2027.