• $46 million investment to build 22MW bio-electricity facility at Cleanaway's Lucas Heights landfill
• Cleanaway to contribute exclusive rights to landfill gas for 20 years
• Joint venture to deliver incremental EBIT of ~$5M in FY25, ~$10M in FY26, and ~$15M per annum beyond FY26

Cleanaway Waste Management Limited (ASX: CWY) has announced a joint venture with Australian bioenergy and methane abatement company LMS Energy Pty Ltd to process and monetize landfill gas (LFG) at Cleanaway's Lucas Heights landfill. Under the terms of the joint venture, LMS Energy will invest approximately $46 million in the construction of new bio-electricity assets, including a 22MW generation facility, which will replace the existing electricity generation infrastructure. Cleanaway will contribute exclusive rights to the landfill gas at Lucas Heights for 20 years. Both parties will hold equal ownership in the joint venture, leveraging their combined capabilities to maximize returns while minimizing the capital outlay for Cleanaway. The formation of the joint venture is subject to third-party approvals. Through the sale of landfill gas, provision of services, and from the JV itself, Cleanaway expects the partnership to contribute incremental EBIT of approximately $5 million in FY25 and approximately $10 million in FY26. Beyond FY26, post full commissioning of the assets, the partnership is expected to deliver incremental EBIT of approximately $15 million per annum.

Consistent with LFG capture and monetisation being an initiative pursued as part of Cleanaway's Operational Excellence focus, the EBIT accretion from the JV is factored into its FY25 EBIT guidance. Cleanaway continues to expect FY25 EBIT to be between $395 and $425 million.