Plastic recycling hub North Queensland business case
Making the case for a potential plastic recycling and production industry in Far North Queensland.
Identifying opportunities
Regional Development Australia (RDA) is a national network of committees working to drive economic growth around the country, with RDA Tropical North focusing on Far North Queensland.
RDA Tropical North and Cairns Regional Council identified an opportunity to create a plastics recycling hub in the region, which would align with local, state and federal government policies to promote a circular economy, reduce the use of single-use plastics, and develop domestic recycling capacity.
In 2020 the group commissioned a feasibility study to consider whether a recycling facility would be viable and provide benefits to the community, including a business case for investment in the project.
A destination for plastic
RDA Tropical North engaged RPS to support an investigation and business case into the development of the recycling facility, as a pilot for future regional centres across Australia.
RPS’ economic and environmental experts conducted market analysis and research to inform its report. Our investigation found the preferred option for a recycling hub would be a plant that recycled HDPE (high density polyethylene) and PET (polyethylene terephthalate). These plastics would be sourced from commercial premises within a 150-kilometre radius of Cairns. Analysis by RPS experts found a multi-polymer recycling plant could provide the following benefits:
- Divert approximately 5,500 tonnes of plastic per year
- Increase recycling from 1.9% in Far North Queensland to 17.1% in 2022
- Reduce embodied greenhouse gas emissions by around 5,000 tonnes of carbon dioxide equivalent per year
- Deliver a net benefit to Queensland of $50.6 (net present value) and a benefit cost ratio of 3.1
- Provide economic stimulus to the region, including the creation of up to 83 full-time employment direct and indirect jobs during construction and up to six during operation
- Provide a potentially attractive return to investors.
As part of the business case, RPS also outlined a delivery plan for the project.
