Goulburn MP Pru Goward dug a shiny ceremonial shovel into the ground amid whipping winds to mark the recent launch.

However, construction on the Mechanical Biological Treatment (MBT) facility actually started on October 1.

The $100 million development is the latest addition to Veolia Environmental Services’ bioreactor at the former Woodlawn Mine, near Tarago.

It complements agriculture, aquaculture and a wind farm at the site, the latter three harnessing energy produced from the bioreactor. The old mine void has so far received 4.6 million tonnes of Sydney’s putrescible waste, Veolia’s NSW group general manager Ben Sullivan, confirmed.

Mr Sullivan said the MBT won State Government approval in 2007 for the treatment of 240,000 tonnes of mixed waste and 40,000 tonnes of green waste.

However Veolia waited for the right market conditions and a refined design to start construction.

“We needed a long-term client that was prepared to commit and we also needed the waste volume,” he said.

“A lot of components had to come together.”

That came in the form of a single contract with eight south Sydney councils (SSROC), which called for an alternative streams to reduce the amount of waste going to landfill. The MBT was critical to this.

It spurred construction of Veolia’s second Sydney rail transfer station, a $30m development at Banksmeadow, currently underway. It is expected to receive waste from mid 2016.

Mr Sullivan said the company’s existing transfer station at Clyde was not the most efficient solution for the south Sydney waste due to its location.

Since that 120,000 tonne annual commitment, Veolia has secured another contract from the northern Sydney Councils, also using the MBT.

The first stage is aimed at treating 140,000 tonnes of mixed waste annually.

It utilises rotating drum technology, each 50m long by 4.5m wide. The drums separate organic materials from mixed waste, eventually taking it to fermentation halls where they compost over about six weeks.

BioKap, or a biofilter cover, is used to control moisture levels and reduce odour.

The material is then fully pasteurised and ready for maturation in windrows for up to 12 weeks in an open area. Following further refinement, it is ready to be used for remediation on the mine site.

During the process, water is collected in tanks and re-used.

Mr Sullivan said Veolia estimated 10 years’ demand for the compost for the mine’s rehabilitation. However the company is also negotiating with Heron Resources, which is resurrecting underground mining at Woodlawn, about using the material to rehabilitate tailings dams. It cannot be used on farmland under EPA guidelines.

North Sydney based firm, Lipman Pty Ltd, also responsible for Wet ‘n Wild in outer Sydney and the Sydney Olympic Equestrian Arena, is building the plant.

Construction is expected to be finished mid next year.

Mr Sullivan anticipated the facility would receive waste within the ensuing three months.

It comes at a time when councils and the commercial sector are trying to meet resource recovery targets.

“(Our) investment in sustainable activities and technologies on this site are a testament to where resource recovery in Australia can and should be headed,” he said.

Mr Sullivan told the Post there could be opportunities for surrounding councils, including Goulburn Mulwaree to also utilise the MBT. Currently, the bioreactor receives regional waste from Palerang Council but Veolia is also negotiating with Goulburn Mulwaree about doing the same.

The project will create 150 jobs during construction, including local subcontractors, and 20 fulltime positions once operational. The Lipman crew are renting four houses in Goulburn during the week.

The MBT will also generate the need for a second train load of waste from Sydney daily. Veolia has been running a second train at half capacity two to three days a week in the last few months given higher waste streams. However this would become more permanent with the MBT.

Mr Sullivan said while the plant was Veolia’s focus for now, the company was constantly exploring sustainability options. Horticulture is under investigation.

“We have a strong innovation team looking at how we can turn all this methane into the circular economy,” he said.