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Kwinana Waste To Energy Project

Confidential - Perth Waste Flow Analysis Report

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Kwinana WTE Project Co Pty Ltd

WALGA Request for Tender, RFT 23/16

Preferred Supplier Arrangement – Energy Services Category 4 – Supply of Sustainable Energy Generation Infrastructure (Waste to Energy Services) Part B – Tenderer’s Submission Response Details: Project Background and Response to Technical Requirements

Version: Final Release Date: 22 February 2017

Kwinana Waste to Energy Project Confidential Tenderer’s Submission

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Contents Contents ............................................................................................................................................................................................. 1

1 Executive Summary ............................................................................................................................................................. 4

2 Project Background ............................................................................................................................................................. 6

2.1 Introduction .................................................................................................................................................................. 6

2.2 Kwinana RRF Project Overview ............................................................................................................................ 7

2.3 Resource Recovery Facility (RRF) Technology & Energy Recovery ...................................................... 8

2.3.1 Martin Grate system ......................................................................................................................................... 8

2.3.2 Electricity generation ...................................................................................................................................... 8

2.4 Electricity Generation Details ................................................................................................................................ 9

2.4.1 Power Generation ............................................................................................................................................. 9

2.4.2 Large Scale Generation Certificates (LGCs) ............................................................................................ 9

3 Scope of Services Applicable to WALGA Members .............................................................................................. 10

3.1 Waste Services Agreements (WSAs) ................................................................................................................ 10

3.2 Energy Offtake Agreements ................................................................................................................................. 10

3.3 By-Product Offtake Agreements ........................................................................................................................ 10

4 Response to Technical Requirements ....................................................................................................................... 11

4.1 Foreword ..................................................................................................................................................................... 11

4.2 Scope of services ...................................................................................................................................................... 11

4.3 Competencies ............................................................................................................................................................ 11

4.4 Qualifications ............................................................................................................................................................. 12

4.5 Compliance to Standards (Mandatory) ........................................................................................................... 13

4.6 Certifications (Desirable) ..................................................................................................................................... 13

4.7 Professional body recognition and membership (Desirable) ............................................................... 13

4.8 Relevant Legislation................................................................................................................................................ 13

5 Project Status....................................................................................................................................................................... 15

6 ATTACHMENT A – O&M Contractor’s Certifications .......................................................................................... 20

List of Tables Table 1 Key Generator Details [subject to confirmation during Detailed Design] .............................................. 9

Table 2 RRF Resource recovery efficiency summary table........................................................................................ 12

Table 3 General ............................................................................................................................................................................ 15

Table 4 Permits, Approvals & Exemptions Granted ..................................................................................................... 15

Table 5 Feedstock and Offtake Agreements ..................................................................................................................... 18

Table 6 Utility Connections ..................................................................................................................................................... 18

List of Figures Figure 1 – Garbage In, Resources Out .................................................................................................................................... 4


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Figure 2 – Kwinana WtE Project Preliminary Architecture .......................................................................................... 6

Figure 3 – Kwinana WtE Project Location off Leath Road in the Kwinana Industrial Area ............................ 7

Figure 4 – Kwinana WtE Project Structure and Counterparties ................................................................................. 7

Figure 5 – A typical Stoker Grate WtE process .................................................................................................................. 8


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1 Executive Summary Phoenix Energy Australia Pty Ltd, ABN 16 137 621 651 (Phoenix Energy), acting on behalf of the Tenderer, Kwinana WTE Project Co Pty Ltd ABN 65 165 661 263 (Project Co), is pleased to provide this confidential Tenderer’s Submission in response to the WALGA Request for Tender (RFT): Preferred Supplier Arrangement – Energy Services, RFT 23/16.

Phoenix Energy is developing a Resource Recovery Facility (RRF) also known and referred to as the Kwinana Waste to Energy (WtE) Project, which is an important new sustainable energy infrastructure development, serving the Perth and Peel region. The RRF, which received planning approval in late 2015, also has environmental approval to divert up to 400,000 tonnes of waste away from landfill disposal each year. With a waste diversion rate of up to 100%, the RRF will result in a step change in waste diversion, and allow the State to achieve its metropolitan waste diversion target of 65% by 2020. Furthermore, due to the relatively consistent nature of waste generation, the RRF will be a unique form of baseload renewable electricity generation, able to displace existing fossil fuel fired baseload generation capacity. Consequently, the project has been designated as a Level 2 State significant project with Western Australia’s Department of State Development (DSD) acting as lead agency.

This submission is in relation to Category 4 - Supply of Sustainable Energy Generation Infrastructure (Waste to Energy) and specifically for the provision of feedstock capacity as a commodity (available to WALGA Members under Waste Services Agreements, WSAs) and the future sale of energy as electricity. Therefore, this submission is expected to be considered an ‘Alternative Response’ for evaluation by WALGA within this category area as the Tenderer wishes to provide one or more of the following:

A. a thermal WtE Resource Recovery Service, as depicted in Figure 1, through the provision of feedstock capacity,

B. the Supply of Contestable Energy generated by the Waste to Energy infrastructure currently under development, and

C. the supply of other by-products, such as alternative landfill daily cover, alternative construction materials1 (road base, secondary aggregate, concrete products and bricks).

Figure 1 – Garbage In, Resources Out

Consequently, the Kwinana Waste to Energy (WtE) Project will enable WALGA Members to achieve their sustainability goals by diverting waste away from landfill disposal while

1 Available by-product details to be further defined during detailed design and during commissioning.

Garbage IN

Non-Ferrous Metals

Ferrous Metals

Bottom Ash for Reuse

Grate Ash & Grate Siftings


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simultaneously providing an opportunity for member councils to buy back the recovered resources as low carbon energy (electricity) and potentially, alternative construction materials.

Furthermore, this submission meets a number of the key objectives of the WALGA Preferred Supplier Panel Contract, especially in relation to:

• value for money for WALGA Members through aggregation associated with the supply of Municipal Solid Waste (MSW) and the supply of contestable energy,

• streamlining the procurement of new sustainable energy infrastructure (and resource recovery infrastructure), with minimal risk to Local Government,

• supporting investment in new jobs and infrastructure associated with both sustainable energy generation and resource recovery, which will enable participating WALGA Members to meet the State waste diversion target, and

• leverage the time and legal effort of the existing WSAs signed with 8 local councils

Project Co is seeking to add to the existing WSAs signed with 8 local councils in the Perth and Peel Region, and to establish electricity offtake agreements (including Power Purchase Agreements, PPAs) for Contestable Electricity generated once the RRF commences operation (planned to occur in 2020).

Project Co would also be delighted to receive any expressions of interest in relation to reuse opportunities, which WALGA Members may identify for the potential ash-derived by-products.


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2 Project Background 2.1 Introduction

The Kwinana RRF Project is a 400,000 tonne/year (primarily Municipal Solid Waste fuelled) stoker grate power station with a gross electricity generation capacity of ~36 MW and ~32 MW available for export into the South West Interconnected System (SWIS). A preliminary architectural illustration of the facility is provided in Figure 2. Approximately half of the plant’s waste feedstock capacity is currently under long term (20 year) waste supply contracts with 8 local councils. The current volumes being considered may ultimately represent around 340,000 households from the first year of operation; with any remaining capacity being sourced from residual Commercial & Industrial (C&I) waste. The project is a Level 2 state significant project with Western Australia’s Department of State Development (DSD) acting as lead agency. Figure 2 – Kwinana WtE Project Preliminary Architecture

Not only will the project generate renewable electricity for sale, it will facilitate the recovery of recyclable ferrous and non-ferrous metals, and will also seek reuse markets for the ash by-products. Consequently, the project aims to divert up to 100% of the waste feedstock away from landfill disposal. This will deliver a step change outcome towards the State government’s landfill diversion target of 65% diversion by 2020 for MSW arising in the Perth Metro area.

The project is to be located on a 4.1 ha site, with a ~3.5 ha development envelope, in the Kwinana Industrial Area (KIA), ~40 km south of Perth CBD, at Lot 9500, Leath Road, Kwinana, WA 6167 (as shown in Figure 3). To date, the project has received Part IV Environmental Approval2, Part V Works Approval3 and Planning Approval4. The project is currently progressing through the grid connection process with Western Power and intends to obtain an Electricity Retail Licence in due course. The project is currently finalising key contracts for the Engineering, Procurement & Construction (EPC), as well as the Operation & Maintenance (O&M) services. The RRF is scheduled to be commissioned in 2019/20, with full operation commencing later in that financial year.

2 http://www.epa.wa.gov.au/proposals/kwinana-waste-energy-project 3 https://www.der.wa.gov.au/component/k2/itemlist/filter?fitem_all=w5911&moduleId=94&Itemid=175 4 http://www.planning.wa.gov.au/daps/data/metropolitan%20daps/metro%20south-west%20jdap/Meeting%20agendas%20and%20papers/20151207%20-%20Agenda%20-%20No%2086%20-%20City%20of%20Kwinana%20-%20City%20of%20Rockingham.pdf


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Figure 3 – Kwinana WtE Project Location off Leath Road in the Kwinana Industrial Area

2.2 Kwinana RRF Project Overview

The current project delivery structure for the Kwinana RRF is illustrated in Figure 4, along with the key contracted local government counterparties responsible for the long-term supply of waste to the WtE facility. BGC Contracting has been selected as the preferred Engineering, Procurement and Construction (EPC) Contractor to deliver the facility, while a TW Power Services (TWPS) has been selected as the preferred Operation & Maintenance (O&M) Contractor. Figure 4 – Kwinana WtE Project Structure and Counterparties


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2.3 Resource Recovery Facility (RRF) Technology & Energy Recovery

An illustration showing the main components of the RRF is presented in Figure 5.The Martin stoker grate combustion technology has been used in more than 400 reference facilities internationally. Figure 5 – A typical Stoker Grate WtE process

2.3.1 Martin Grate system The Martin Grate (stoker) system has been in commercial operation since 1959, with over 400 WtE plants using this technology, including reference plants in the UK, Germany, Italy, Japan, Switzerland, the Netherlands and North America. Martin GmbH is the market leader in providing technology for the recovery of energy from waste.

The Martin Grate reverse-acting stoker consists of alternate fixed and reciprocating grate bar ‘steps’. The reciprocating steps move slowly upwards against the downward flow of the waste to draw some of the hot ash back under the burning mass to achieve reverse agitation and assist the combustion process, to ensure efficient burn-out.

The track record of the Martin Grate system is extensive and unrivalled in the market of waste to energy projects. Operational records demonstrate that the technology is suitable and proven for a wide range of MSW, as well as for mixtures of MSW, shredded bulky waste, and Commercial & Industrial wastes, such as small to medium size businesses, supermarkets, government facilities and auto shredder residue.

2.3.2 Electricity generation The Kwinana RRF will have two Martin stoker grates with integral water wall boilers operating in parallel. Hot flue gases leaving the combustion chamber pass through a standard water wall boiler where superheated high pressure steam is generated through heat recovery. The high pressure steam is sent to a steam turbine generator, to generate electricity via the conventional Rankine

Waste Handling

Energy & Resource Recovery

Power Generation & Export

Flue Gas Cleaning(Air Pollution Control)


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steam-power cycle. A small amount of electricity is utilised to operate the plant, with the balance available for export to the SWIS.

2.4 Electricity Generation Details

2.4.1 Power Generation The RRF will have an on-site waste storage bunker capable of storing up to 8 operating days of feedstock capacity, to facilitate operation overnight and over weekends, and to provide capacity for when one of the two boilers are shutdown in accordance with the RRF boiler maintenance schedule. The two boilers will operate independently and in parallel, for maximum plant availability and operational flexibility. High pressure steam is delivered to a common condensing steam turbine generator, with exhaust steam condensed under vacuum conditions in an Air Cooled Condenser. Key electricity generation capacity details are summarised in Table 1 below. Table 1 Key Generator Details [subject to confirmation during Detailed Design]

Gross electricity generation capacity 36 MW

Parasitic (in plant) electricity load ~4 MW

Net electricity export capacity to the SWIS 32 MW

Baseload Generation Operation is 24hrs x 365days, with each Boiler shutdown for planned maintenance 3 x ~12 days per annum. As such, the RRF will generate ~253,000 MWh/yr of baseload electricity.

Planned Maintenance Cycles A typical operating year will consist of 295 days of 2 boiler operation and 70 days of planned single boiler operation, to deliver an overall availability of 90%. This is equivalent of 7920 hours of operation at 100% capacity per year.

A planned full plant outage occurs every 5-7 years for Steam Turbine Generator overhaul, bunker inspection and common systems inspection and maintenance.

Capacity The facility will be designed to operate normally at 41oC, the reference temperature for Reserve Capacity. Measures to enhance generation capacity at 41oC will be considered during detailed design.

2.4.2 Large Scale Generation Certificates (LGCs) Due to the nature of its feedstock (fuel), the Kwinana WtE Project qualifies for accreditation as a Large Scale Renewable Energy Generator under the Renewable Energy (Electricity) Act 2000. Once registered, the RRF will generated Large Scale Generation Certificates (LGCs) for sale/trading, depending on the biomass or biogenic fraction of the waste feedstock, which is deemed eligible (by the Clean Energy Regulator, CER) for renewable energy (electricity) generation5.

5 For further details, please refer to CER Guideline for Determining the Renewable Components in Waste for Electricity Generation (2001).


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3 Scope of Services Applicable to WALGA Members 3.1 Waste Services Agreements (WSAs)

Project Co is seeking WSAs to cover the remaining feedstock capacity, which is not currently under contract. Potential contract terms for a Resource Recovery services offering:

• Commencement date 2019/20 • 5-15 year rolling term • Transportation of waste by waste collection service providers

3.2 Energy Offtake Agreements

While Project Co intends to obtain an Electricity Retail Licence, Project Co is also in discussion with one or more electricity retailers, with a view to establishing a commercial relationship retailer, who will on-sell electricity generated by the WtE plant to customers who have expressed interest in an energy offtake agreement with the Project.

In accordance with the Renewable Energy (Electricity) Act 2000 (Cth), the WtE plant qualifies for accreditation as a Large Scale Renewable Energy Generator, with renewable electricity generated from the biomass content of the feedstock. The plant is expected to generate Large Scale Generation Certificates (LGCs). If bundled with the LGCs, the energy can be considered to be green energy. The following key terms are proposed for discussion:

• Commencement date 2019/20 • 5-20 year rolling term • Black power and green power options • Competitive retail terms to be negotiated based on load profile and term

3.3 By-Product Offtake Agreements

Project Co is seeking expressions of interest from WALGA Members with respect to the reuse of the ash by-products from the RRF as alternative landfill daily cover and/or alternative construction materials.


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4 Response to Technical Requirements 4.1 Foreword

Product or manufacturer’s warranty is not directly applicable to WALGA Members as only Services are being supplied. However, service quality standards relating to RRF unavailability (i.e. when the RRF is unable to accept, store and process acceptable waste) and contingency plans for RRF unavailability are accommodated as part of contractual arrangements e.g. a Waste Services Agreement and/or an Energy Offtake Agreement.

Quality accreditation will be applicable to the RRF EPC Contractor, contracted to construct the RRF on behalf of Project Co and the Operations & Maintenance (O&M) Contractor (or service provider), contracted to operate the RRF on behalf of Project Co.

4.2 Scope of services

Project Co’s RRF is a Waste to Energy infrastructure development, which includes the design, supply, installation and maintenance of sustainable energy generation infrastructure.

As such, the scope of services available to WALGA Members upon completion of the construction and commissioning of the RFF, planned to occur in 2019/20 includes:

• The provision of a thermal WtE resource recovery service for all residual waste under the control of the Member, which is destined for landfill disposal because of the lack of a higher order recovery outcome, and which meets the licenced waste acceptance criteria for the RRF.

• The supply of contestable electricity (either directly or via a relationship electricity retailer), and

• The supply of other by-products, such as alternative landfill daily cover and alternative construction materials6 (road base, secondary aggregate, concrete products and bricks).

4.3 Competencies

The RRF has an approved capacity to process up to 400,000 tonnes per year of source separated residual MSW and similar wastes. At full capacity the RRF will generate approximately 32 MW of electricity (net of internal consumption) for export to the SWIS. With an expected boiler availability of greater than 90%, this equates to ~253,000 MWh per year of generation capacity. In addition, ~7-8000 tonnes of ferrous and non-ferrous metals will be recovered for sale as scrap metal to scrap metal merchants.

Project Co would be pleased to provide WALGA Members with a quotation to provide a full resource recovery service7, as an alternative to landfill disposal.

Of relevance to WALGA Members looking to procure a resource recovery service for their residual Municipal Solid Waste (MSW) are the expected recovery efficiencies relating to the various resources to be recovered by the RRF, which are summarised in Table 2.

6 By-product details to be further defined during detailed design and during commissioning and operations. 7 Transportation of the waste to the nominated delivery point would be by others, as is typically the case for landfill disposal.


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Table 2 RRF Resource recovery efficiency summary table

Resource Recovery Efficiency Comment Energy – Electricity ~630kWh/tonne of MSW or

~25% overall electricity generation efficiency

To be confirmed during detailed design, based on final equipment selection

Ferrous metals (iron, steel)

Min. 80% for >25 mm and <150 mm

Subject to EPC performance guarantee

Non-ferrous metals (Aluminium, Copper, Brass, Stainless Steel)

Min. 60% for >10 mm and <150 mm

Potentially subject to EPC performance guarantee

Combined Ash (Bottom Ash, boiler ash and Air Pollution Control residues)

Target 100% • Can be used as an alternative landfill daily cover, to suppress odours and prevent disturbance by vermin and animals.

• Also potential for reuse in concrete products and brick making (interest from local cement, concrete product and brick manufacturers).

• Bottom Ash is also commonly used as a subbase aggregate for road and other construction activities, as an alternative to natural quarried materials.

4.4 Qualifications

The EPC Contractor will be required to ensure that subcontractors undertaking all installation works, including the electrical installation work for the RRF, have the relevant qualifications and certifications. The RRF electrical installation works will include low, medium and high voltage systems and associated equipment.

The O&M Contractor will likewise be required to ensure that any maintenance personnel and subcontractor personnel undertaking electrical installation and maintenance work hold relevant qualifications and certifications for undertaking electrical services work on-site. A list of the typical qualifications held by the Operation Maintenance Technicians employed by the O&M Contractor is as follows:

• Electrical Trade “A grade” • Type B gas fitter licence (Victorian Building Authority) • Industrial HV operator (federation Training) • Permit to work training • Confined Space, Nationally recognised • Gas Turbine and waste heat boiler operations • Fire training (Red Alert) • Perform Substation Switching operation (RTO Industry training) • HV switching operator (Safesmart) • Forklift • Asbestos Awareness (Hazcon) • Work Safely with Industrial Chemicals (Red Alert) • High Risk Worker License (Worksafe) • Installation and Maintenance in Hazardous Areas (Competency Training) • Level 2 First aid


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4.5 Compliance to Standards (Mandatory)

The RRF is being engineered by competent engineering professionals, based on tried and proven technology, and will be constructed by registered construction contractors in compliance with all relevant Australian Standards, or appropriate international standards (where an appropriate Australian Standard does not exist or an international standard is specifically allowed). These standards cover all aspects of the engineering design and civil construction and infrastructure works, and contemplate the future operation of the RRF, including the export of electricity into the South West Interconnected System (SWIS).

The RRF generator name is registered in the Wholesale Electricity Market System (WEMS).

A connection application from Project Co has been accepted by Western Power and the Project is currently progressing through the Western Power connection process as a new transmission generator connection in the Kwinana network area of the SWIS. The connection process will ensure that the Generator and connection infrastructure are compliant with the Western Power Technical Rules, or obtain relevant exemptions.

An outcome of the connection process will be an Electricity Transfer and Access Contract (ETAC), which will bind Project Co to ensure that the RRF is operated and maintained in compliance with the relevant rules, standards and legislation for electricity generation in the SWIS.

4.6 Certifications (Desirable)

With reference to 7 ATTACHMENT A – O&M Contractor’s Certifications, the Preferred O&M Contractor, TWPS, maintains certifications for the following key management systems applicable to the service delivery period:

• ISO 9001:2015 – Quality management system accreditation • ISO 14001:2015 – Environmental management system accreditation • ISO 4801 – Occupational health and safety accreditation

4.7 Professional body recognition and membership (Desirable)

Phoenix Energy, the current owner of Project Co, is:

• A current and active member of the Waste Management Association of Australia (WMAA), • An Australian Energy Market Operator (AEMO) Industry Member, and • An affiliate member of the Kwinana Industries Council.

Some of the employees of Phoenix Energy have individual membership with Engineers Australia.

4.8 Relevant Legislation

The Kwinana Waste to Energy Project is currently in the latter stages of development prior to construction, commissioning and operation. As such, Phoenix Energy has been focused on the engineering design and establishing key subcontracts, to ensure compliance with the Environmental Protection (EP) Act (1986), in particular Part IV and Part V (Works Approval), as well as compliance with the Planning and Development Act (2005), for Planning Approval.

As described in 2 Project Background, the Kwinana WtE Project has obtained Part IV Ministerial Approval (after assessment by the Office of the EPA 8 ) and Part V Works Approval (after assessment by the Department of Environment Regulation 9 ) under the EP Act (1986), and Planning Approval for the proposed development.

8 http://www.epa.wa.gov.au/proposals/kwinana-waste-energy-project 9 https://www.der.wa.gov.au/component/k2/itemlist/filter?fitem_all=w5911&moduleId=94&Itemid=175


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Due to its relatively small electricity generation capacity, Project Co has obtained an exemption from the Electricity Industry Act 2004 section 7(1) in relation to the construction and operation of generating works on the Kwinana site10. Project Co intends to obtain an Electricity Retail Licence prior to first sale of electricity to customers, planned to occur in 2019/20.

In relation to the Waste Services Agreements (WSAs), which Project Co has entered into to date with the City of Kwinana and the Rivers Regional Council, and potentially other WALGA Members, the WSAs have been developed to comply with the Western Australian Waste Avoidance and Resource Recovery Act (2007).

Due to the nature of the fuel for the RRF (i.e. primarily MSW), the RRF will be classified as a renewable energy generator and will be able to seek accreditation as such under the Federal Renewable Energy (Electricity) Act (2000). Consequently, the portion of the generation capacity which can be attributed to biogenic (non-fossil fuel based) components will be classified as renewable electricity generation capacity and will be eligible to create Large Scale Generation Certificates (LGCs). Based on the likely feedstock mix and available waste audit composition information, approximately 50% of the net generation capacity will be eligible to create LGCs.

Due to the variable nature of the feedstock, Phoenix Energy is in discussion with the Clean Energy Regulator (formerly the Office of the Renewable Energy Regulator) to agree a methodology for measuring and monitoring LGC creation.

As the Kwinana WtE Project moves through detailed engineering, final equipment selection, construction, commissioning and into operations, compliance with other relevant legislation and industry requirements (as set by relevant regulatory bodies and agencies, such as the Australian Energy Regulator, Energy Safe WA, Worksafe WA etc.) will be an essential aspect of the project development.

10 https://www.slp.wa.gov.au/legislation/statutes.nsf/main_mrtitle_12904_homepage.html


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5 Project Status Phoenix Energy has selected a preferred EPC Contractor (BGC Contracting Pty Ltd) to Engineer, Procure, Construct and Commission the RRF for handover to the preferred O&M Contractor (TWPS), for the ongoing operation and maintenance of the RRF. With an expected 36 month detailed engineering, construction and commissioning schedule, the RRF is expected to be fully operational in calendar year 2020.

The following tables summarise key features, permits, approvals and agreements achieved to date. Table 3 General

Name Description Status

Level 2 Project Under the State’s Lead Agency Framework, with the Department of State Development (DSD) acting as Lead Agency since September 2012

On-going interdepartmental support and guidance with government to government matters.

Site Lease Option The Western Australian Land Authority (LandCorp) has provided an Option to Phoenix Energy Australia Pty Ltd over a 4.1223 ha portion (containing the 3.4793 ha development envelope) of Lot 9501 Leath Road, Kwinana Beach, proposed for the Site.

Table 4 Permits, Approvals & Exemptions Granted

Approval Number Description Approval Date Expiry Date Environmental

Ministerial Statement No. 101611

Minister for Environment, Statement that a proposal may be implemented (under Part IV, EP Act 1986), in response to EPA Report and Recommendation No. 1538 (assessment and recommendations from the Public Environmental Review of the Kwinana Waste to Energy Project).

Approved capacity: 400,000 tonnes per year of MSW and similar wastes.

The approval also accommodates an on-site Brick making plant for the ash residue.

3 September 2015

3 September 2020 (if no evidence of substantial implement-ation)

11 http://www.epa.wa.gov.au/sites/default/files/Ministerial_Statement/Statement%20No.%201016_0.pdf


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Approval Number Description Approval Date Expiry Date

Works Approval W5911/2015/112

Approval (under Part V of the EP Act 1986) is granted in respect of activities to be carried out on the Premises, subject to conditions. This approval allows for the construction AND commissioning of the Kwinana WtE Facility, but not for the proposed on-site Brick Making Plant.

31 March 2016 (commencement date 4 April 2016)

3 April 2020 (if no evidence of substantial implement-ation)

Licence Approval Approval to operate a prescribed premises under Part V of the EP Act 1986.

Future

N/A

Planning

Planning Approval13

LG Ref: DA8428

DoP Ref: DAP/15/00887

Planning Approval was granted subject to conditions under:

Part A – City of Kwinana Town Planning Scheme No.2, and

Part B – Metropolitan Region Scheme

7 December 2015

7 December 2017 (if no evidence of substantial implement-ation)

Building Permit Exemption Exemption obtained for the WtE Plant “building”, though areas trafficked by the public (e.g. observation corridor) will require a building approval prior to construction. “that part of the Waste to Energy processing plant and incidental structures which members of the public are permitted access will require a building permit. It will be necessary then for a building certification to be undertaken and a permit submitted to the City with the relevant details to allow permit approval for this part”

6 October 2015 N/A

12 https://www.der.wa.gov.au/component/k2/itemlist/filter?fitem_all=w5911&moduleId=94&Itemid=175 13 http://www.planning.wa.gov.au/daps/data/metropolitan%20daps/metro%20south-west%20jdap/Meeting%20agendas%20and%20papers/20151207%20-%20Agenda%20-%20No%2086%20-%20City%20of%20Kwinana%20-%20City%20of%20Rockingham.pdf


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Approval Number Description Approval Date Expiry Date

Other

Electricity Generation Licence

[Electricity Industry Exemption Amendment Order 2016]

Kwinana WTE Project is exempt from the Electricity Industry Act 2004 section 7(1) in relation to the construction and operation of generating works on the Kwinana site if the generation capacity of the generating works is less than or equal to 36 MW.

8 January 2016 N/A

Electricity Retail Licence Typically required prior to first sale of electricity, where there are 2 or more contracted electricity customers.

Future

WEM Rules Participant and Facility Registration

Phoenix Energy is registered as a Wholesale Electricity Market Rules Participant and the Kwinana Facility (Generator) is a named facility under that registration. The Facility will be transferred to Project Co at an appropriate time.

Accreditation under the Large-scale Renewable Energy Target

A power station may be eligible for accreditation under the Large-scale Renewable Energy Target if it meets all the eligibility requirements outlined in the Renewable Energy (Electricity) Act 2000, including:

• some, or all of the electricity generated by the power station is from an eligible energy source, and

• it complies with all Commonwealth, state, territory and local government planning and approval laws.

The Kwinana RRF will export electricity generated from eligible (renewable) fuel/feedstocks such as the biomass components of MSW.


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Table 5 Feedstock and Offtake Agreements

Agreement Type Description Status Feedstock

City of Kwinana Waste Services Agreement

Waste Services Agreement

Term: 20 years from commencement date.

Signed 10 December 2013

Rivers Regional Council (RRC) Waste Services Agreement

Waste Services Agreement:

Term: 20 years + Options (5 years + 5 years) from commencement date.

Signed 4 November 2015.

Offtake

Power Purchase Agreement #1

~50% of capacity • Draft PPA prepared • In discussion with a State

owned counterparty. Power Purchase Agreement #2 or Energy Offtake Agreement(s)

Up to 50% of capacity • Draft PPA and Term Sheet available.

• Currently in discussions with a number of retailers and large loads.

Large Scale Generation Certificates (LGCs)

Term Sheet

Initial 5 year term • Term sheet in negotiation

with a major electricity market participant.

• A proposed methodology for the measurement of LGC creation has been developed for discussion with the Clean Energy Regulator (CER).

Recovered Metals offtake In discussion with a number of parties

Term Sheet prepared for negotiation

Residue Offtake Agreement(s)

Product specification developed Preliminary discussions with potential offtakers.

Table 6 Utility Connections

Utility Type Description Status

Electricity

(Western Power)

An application to connect 32 MW (net) generation capacity to the South West Interconnected System (SWIS) was accepted by Western Power and notification was received on 22 March 2016.

Western Power recently completed a Preliminary Assessment study, which considered 5 viable connection options, 3 of which were considered in some detail, with cost estimates for the expected infrastructure developed by Western Power. A preferred connection option has been identified.


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Utility Type Description Status

Natural Gas

(ATCO Gas)

It is intended to utilise Natural Gas as the auxiliary fuel source for start-up and shutdown of the boilers, and for combustion support.

A preliminary assessment has been undertaken by ATCO Gas for the likely connection location (off the 1900 kPag Leath Road gas main).

Scheme Water

(WaterCorp)

Secure source of potable and make-up water for the site and the process plant.

• WaterCorp has confirmed that they have sufficient capacity to supply water to the project

• A 200 NB connection point is provided on the south side of the site

• An existing 50 NB metered connection services the existing Admin building

Sewer Not available and not applicable. The RRF has been designed for zero wastewater discharge.

Stormwater As typically required for industrial sites in the Kwinana Industrial Area, up to a 20 year rain event is required to be managed on-site to City of Kwinana Engineering Specifications.

• Contemplated in the design and plant layout.

• The current design includes a stormwater storage reservoir for reuse.


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6 ATTACHMENT A – O&M Contractor’s Certifications ISO 9001:2015 – Quality management system accreditation

ISO 14001:2015 – Environmental management system accreditation

ISO 4801:2001 – Occupational health and safety accreditation

TW Power Services Pty Ltd| Capability Statement for Phoenix Energy Kwinana WtE | 26 September 2016 Page 7 of 18

1. Delivering the services in accordance with TWPS’ proven, integrated quality management system, known as the Operational Systems Plan (OSP)

2. Delivering services using a combination of in-house personnel and specialised subcontractors – with the resourcing methodology tailored to deliver the highest quality, safety and efficiency on each service.

The OSP is TWPS’ central operational management system. It has been developed specifically to meet the unique needs of power generation operations, maintenance and asset management services. It integrates quality, health, safety and environment (HSE), risk, financial and other requirements under a single, auditable framework, developed in accordance with AS/NZS 4360:2004 (Risk Management). The system is independently accredited by Bureau Veritas to:

1. AS/NZS ISO 9001:2008 Quality Management Systems

2. AS/NZS ISO 1401:2004 Environmental Management Systems 3. AS/ 4801: 2001 Occupational Health and Safety Management Systems.

The OSP contains all relevant processes and information required to satisfy industry and/or site requirements, including compliance with relevant legislation. It is an intranet-based system with a detailed index that enables staff to locate relevant information quickly and easily.

We will use the relevant parts of the OSP to support effective and consistent service delivery to meet our clients requirements. Shown below is an overview of the OSP structure.

Quality Assurance – ISO 9001 certified The TW Power Services’ OSP captures our philosophy and approach to providing quality deliverables to our clients, and fulfilling the intent of contract-specific Quality, Safety & Environmental Plans. By capturing all requirements into this integrated system, the methods by which objectives are delivered across all sites are consistent, readily accessible and useable – regardless of client or location.

TW Power Services Pty Ltd| Capability Statement for Phoenix Energy Kwinana WtE | 26 September 2016 Page 8 of 18

It is imperative for TWPS’ business that we adhere to standardised, rigorous processes for delivery of services. This supports our culture for doing things right first time and enables us to continually improve and innovate. We view quality management as a process to enhance customer satisfaction by meeting our clients' needs; to ensure compliance with regulations we are bound by; and to improve our performance. This is the responsibility of all our employees, subcontractors and suppliers.

To achieve our quality objectives, TW Power Services has developed a comprehensive suite of strategies, policies, systems and processes that are applied across the business, and a governance framework that supports quality management across the organisation. These are structured around the certification requirements of the ISO 9001 standard.

Our overall QA methodology is represented in the figure below which illustrates the key tools, processes and measures used by TWPS, aligned to the Plan Implement Review Improve cycle. As suggested in the diagram, many of the tools can be used across overlapping stages of the cycle.

Our systems will drive structured planning of the services, and regular reviews of our performance against contract KPIs. This will provide the basis for transparent assessment and improvement of our quality management processes, and driving continuous improvements in service delivery. Together, these systems will bring field-based and management system-based innovations to contract level, supporting innovation and continuous improvement in TWPS' and the site maintenance team’s operations. TWPS has a corporate quality assurance (QA) management team which maintains the system, and which supports our business units in implementing the QA system at contract level. This will ensure the our client’s On-Site Services contract is supported by best practice management systems to deliver high quality services.

Copies of our QA Certifications are included in Attachment 2

FIGURE 1: TWPS QUALITY ASSURANCE PROCESS

Attachment 1

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Attachment 2

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