NSW's EPA's New Energy from Waste Policy: what proponents need to know

Key landfills servicing Greater Sydney are expected to close from 2030 or earlier but the transition to a circular economy has been haphazard, particularly for certain residual waste streams. The NSW Government is prioritising development applications to unlock more landfill capacity at existing priority landfills as well as strategically planning for new waste infrastructure. That new waste infrastructure includes dedicated energy from waste precincts.

It's in line with a key NSW Government commitment in its NSW Waste and Circular Infrastructure Plan 2025: to build a resilient residual waste management system through enabling energy from waste and reduce reliance on a limited number of landfills.

The Energy from Waste Framework addresses location controls, nominated precincts in NSW, and tiered activity classifications. The new Technical Note, which replaces its 2021 Energy from Waste Policy Statement, sits within the broader NSW Waste and Circular Infrastructure Plan and sets out minimum operational standards and technical requirements for these facilities.

Who does the Technical Note apply to?

Any facility proposing to thermally treat waste or waste-derived material must comply with the Technical Note. That means demonstrating current international best practice in:

• process design and control;

• emission control equipment;

• emission monitoring with real-time feedback;

• waste receipt arrangements; and

• management of residues.

Critically, facilities must use proven technologies which can handle the expected variability and type of waste feedstock. This must be demonstrated by reference to existing operational facilities treating comparable waste streams in similar jurisdictions.

Operational standards

Emission standards: among the strictest globally

In April 2025, the NSW Chief Scientist & Engineer confirmed that NSW emission limits "remain among the most stringent, compared to other jurisdictions".

The Technical Note introduces 100th percentile concentration limits for both 1-hour and 24-hour averages. The Technical Note model emissions standards and monitoring requirements will be applied as a basis for assessing development proposals and drafting environment protection licence conditions. Key model emissions standards for combustion-based energy from waste facilities include:

_{(expressed at dry conditions, 273 K, 101.3 kPa, 11% O₂)}

Proponents of alternative technologies (eg. gasification, pyrolysis) should engage directly with the EPA to discuss applicable requirements. The EPA may set additional emissions limits or conditions for project specific risks or to promote continuous improvement.

Air quality assessment and monitoring

• An air quality impact assessment must be completed in accordance with the Approved Methods for the Modelling and Assessment of Air Pollutants in NSW, demonstrating protection of ambient air quality across all operational scenarios and the projected life of the facility.

• Validated emission monitoring data must be made available publicly through an online portal in near real time and a weekly summary of continuous monitoring data and compliance with limits must be published online.

• All facilities will be required to complete proof of performance (POP) testing to demonstrate compliance with air emissions standards as a condition of their environment protection licence. Proponents must provide a commissioning plan at the licence application stage detailing the POP emission testing to be undertaken.

Plant design and operation for incineration-based technologies

• Gases must be raised to a minimum of 850°C for at least two seconds after the last injection of combustion air. This applies even under the most unfavourable conditions.

• Bottom ash quality is also regulated: total organic carbon must not exceed 3% and loss on ignition must not exceed 5% of the dry weight of the material.

• Waste feed interlocks are mandatory, preventing waste from being fed when the required temperature has not been reached, whether at start-up or during operation.

• Thermal efficiency: Facilities must recover at least 25% of the lower heating value energy input as useful energy.

Public consultation and the good neighbour principle

The Technical Note states it will be essential for proponents to provide effective information and public consultation about energy from waste proposals. As proposals progress from the concept to detailed development assessment stage, proponents will need to engage in a genuine dialogue with the community and ensure that development consent and other approval authorities are provided with accurate and reliable information.

The EPA expects that operators of an energy from waste facility will need to be "good neighbours" – particularly if near a residential setting but also where there are workers in other facilities.