The two governments co-invested A$23m ($15.9m) through the Australian Government’s Recycling Modernisation Fund (RMF) to develop the material recovery facility (MRF).
Located in Hume next to an existing MRF, the facility is intended to drive the ACT’s circular economy by providing advanced waste management and recycling facilities.
Australian Environment and Water Minister Tanya Plibersek said: “We are committed to halving the amount of organic waste sent to landfill nationally by 2030.
“This not only keeps the value of our food waste in the Australian economy but also helps to reduce Australia’s greenhouse gas emissions.”
ACT Government Transport and City Services Minister Chris Steel said: “Building a brand new, modern MRF facility, adjacent to the old facility, will ensure the ACT has an entirely new state-of-the-art recycling infrastructure as our region grows.
“It will improve safety and avoid the need to close the existing MRF during construction.
“New technology at the new plant will deliver the capacity to sort, separate and process materials for the whole Canberra region, creating higher quality resources with higher value uses, including remanufacturing.”
In addition to the recycling facility, the Australian Government will contribute a further A$13m to develop a Food Organics and Garden Organics (FOGO) facility.
The FOGO project will process up to 50,000tpa of organic waste, with the aim to divert up to 3.4 million tonnes of food and organic waste from landfill across the country.
In March this year, the Australian Government announced a A$60m funding stream to help process plastic crisp packets and bread bags as part of the RMF.
The RMF aims to expand the country’s sorting, processing and remanufacturing of recycled materials such as plastic, paper, cardboard, tyres and glass.