National soft plastics update

The REDcycle soft plastic recycling scheme collapsed in late 2022 due to a lack of end markets for the material. This resulted in a widely publicised stockpile of around 12,000 tonnes at over 40 sites.

Here is a summary of progress achieved to date since then.

Dealing with the REDcycle stockpile

The 3 largest supermarket chains (Coles, Woolworths and ALDI) are working together through the Soft Plastics Taskforce to manage and recycle the stockpile. All options are being considered including local processing and export. 

Restarting retail collections

In February 2024 the Soft Plastics Taskforce restarted collecting soft plastics in a trial at 12 Melbourne supermarkets. This material will be processed by Close the Loop and CRDC Global. They are aiming for a ‘staged reintroduction’ of collections as more reprocessing capacity and end markets become available.

Growing local council collections

In 2023 the Australian Food and Grocery Council (AFGC) ran kerbside collection trials in 6 local council areas in Victoria, NSW, and South Australia. This is to inform the development of the National Plastics Recycling Scheme (NPRS), which aims to support collection and recycling of household soft plastics through both kerbside and retail collections.

Residents were provided with a dedicated, coloured plastic bag that they filled with their soft plastics and added to their yellow bin. The bags were then removed at Material Recovery Facilities for recycling by APR Plastics.

In addition, Mosman, Central Coast, Newcastle and Tamworth councils in NSW are already collecting soft plastics through the kerbside yellow bins using the Curbcycle service, which is an ‘opt-in’ service for residents.

Some councils including Wingecarribee, Randwick and Bendigo allow residents to drop off soft plastics at recycling centres. Wingecarribee Shire Council has an arrangement with RecycleSmart to transport mixed household plastics to APR in Melbourne, while Flagstaff collects any clear, uncontaminated soft plastics.

Others councils such as Sutherland provide residents with access to the RecycleSmart home collection service for soft plastics and other recyclable materials.

The Victorian Government is consulting on the proposed inclusion of soft plastics in its draft standard for kerbside recycling bins, with timing to take into consideration processing capacity and industry readiness to accept this material.

A new product stewardship scheme

AFGC has been developing its National Plastics Recycling Scheme for the past 4 years, well before the REDcycle collapse The NPRS will largely focus on kerbside collection, using a special-purpose bag, supplemented by other channels which could include return to store and other collection methods for regional areas. The scheme will be funded through a levy on manufacturers and retailers based on how much household soft plastic they place on the market. 

Expanded recycling capacity for soft plastics

REDcycle collapsed due to a lack of end markets for the material. This is expected to change significantly over the next few years, which will allow kerbside and other collection programs to expand. Here are some of the most significant developments:

• Close the Loop, which stopped taking REDcycle material in 2022 following a fire at their Melbourne factory, will start processing the REDcycle stockpile and other soft plastics from February 2024.  Close the Loop manufacture TonerPlas, an asphalt additive that improves the longevity of roads, and an injection moulding resin that can be used to make shopping trolleys and many other products.

• CRDC Global has established a recycling facility in Melbourne to recycle plastics into a product called Resin8, which is used as a concrete additive. CRDC is starting to process some material from the REDcycle stockpile. 

• APR Plastics is already recycling household plastics at a small 5,000 tonne facility in Melbourne, converting it back into oil so that it can be remanufactured back into plastics. Their fully commercial plant is expected to be operational from late 2024

• Advanced Recycling Victoria is building a 20,000-tonne chemical recycling plant for plastics in Melbourne to convert plastics back into oil to be remanufactured back into plastics. The plant will use Licella’s technology. The project is delayed while Licella focuses on the first commercial scale plant being commissioned in England.

• Plasrefine is seeking approval to build a 120,000-tonne recycling facility in Mossvale in the Southern Highlands of NSW.