Together the companies have formed the Colac Power Company (CPC) that will oversee the construction and implementation of the bioenergy plant.

The plant is expected to convert approximately 80 tonnes of liquefied organic waste per day to produce 1 MWh of energy. 

The plant will be fuelled by all types of organic waste including grease trap waste; paunch material; dairy liquids and solids; and meat scraps.

The waste is liquefied and then fed into digester tanks where it is broken down over 30 days anaerobically, company director Tony Evans explained.

“The by–product of this process is methane, which we harvest off the top of the tanks, put through a cleaning process then burn through a gas-fired engine that runs a generator, which generates electricity,” said Mr Evans.

It is expected that the plant will take 18 months to complete once the CPC secures a planning permit.

The CPC was recently granted $1.5 million by the Victorian Government to complete the project, which is expected to have a total cost of $6 million.