Gippsland Water has officially opened a $12.2 million expansion at its Gippsland Regional Organics facility, marking a significant step in strengthening the region’s capacity to recycle organic waste at scale.
With the upgraded facility now able to process up to 250,000 tonnes a year, the transformation positions Gippsland Regional Organics as a critical circular economy hub for the region.
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The project increases processing capacity by nearly 40 per cent and lifts annual compost production from 50,000 to 70,000 tonnes.
This expansion ensures that the region can meet growing demand from agriculture, land management, and commercial customers while reducing reliance on landfill.
Managing Director Sarah Cumming said the upgrade would support both environmental and economic resilience in Gippsland.
“We will be able to further reduce emissions by redirecting more organic material away from landfills,” Cumming said. “Now we are no longer at capacity, we can service an unmet market demand and keep the value of organic materials in Gippsland.”
The expansion included new processing areas, upgraded electrical and water infrastructure and the installation of additional high-capacity equipment. These improvements allow Gippsland Water to scale operations safely and efficiently while maintaining consistent quality in its compost product. As demand for recycled organics continues to rise, the project enables the organisation to respond with confidence.
Cumming said the upgrade will also support local communities through operational efficiencies that reduce financial pressure on customers.
“By generating more income and offsetting our operating costs, we can continue to put further downward pressure on customer bills,” she said.
The expansion has delivered tangible regional benefits, including 47 full-time equivalent jobs created during construction and four ongoing roles to support the facility’s increased workload. This reflects the strategic value of circular economy initiatives, which not only reduce emissions and waste but also stimulate skilled employment in regional areas.
The project received $2.394 million in Victorian Government funding through the Circular Economy Organics Sector Transformation Fund and a further $2.394 million in Australian Government funding through the Food Waste for Healthy Soils Fund. These investments recognise the importance of diverting organic waste from landfill and strengthening soil health by returning valuable organic material to the landscape.
By expanding Gippsland Regional Organics, Gippsland Water is now better positioned to contribute to regional emissions reduction goals. Organic waste in a landfill generates methane, a potent greenhouse gas. Processing this waste instead captures its value while avoiding emissions, improving soil structure and supporting regenerative farming practices.
The upgrade supports a broader shift toward sustainable resource management across Victoria. As more councils, land managers and industries seek alternatives to landfill, the need for high-quality, large-scale organics processing continues to grow. Gippsland Regional Organics now offers capacity, capability and product quality that directly support this transition.
Cumming said the expanded operations will help ensure the region is equipped for long-term sustainability.
“The expansion supported 47 full-time equivalent local jobs during construction, and Gippsland Regional Organics now includes an additional four full-time equivalent positions,” she said.
Further information about Gippsland Water’s circular economy initiatives is available at www.gippswater.com.au.