Analysis

Yarra Valley Water's Lilydale food waste plant ramps up as Scope 3 target looms

Yarra Valley Water's Lilydale plant is ramping toward 55,000 tonnes of food waste a year as the utility targets a 67% Scope 3 cut by June 2030.

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Yarra Valley Water's Lilydale food waste energy plant is ramping up toward about 55,000 tonnes a year and over 39,000 kWh a day, after its first commercial delivery in about December 2025. The utility says that at full capacity the plant will supply "more than a third of our renewable electricity needs". No full-operation date has been announced.

From 34,083 tonnes to net zero

Yarra Valley Water's Scope 1 and 2 emissions were 34,083 t CO2-e in FY2016-17 and 7,478 t in FY2024-25. That was within the 11,664 t ceiling in the Victorian Government's Statement of Obligations. The utility states it reached net zero for Scope 1 and 2 from 1 July 2025, using 100% renewable electricity and Victorian carbon offsets. Its Annual Report 2025-26 has since been released.

Two plants and a pilot

The Wollert plant has operated since May 2017, taking up to 33,000 tonnes of food waste a year. An April 2024 Victorian Government statement gave A$48 million for Lilydale (whether as total cost is not stated), plus a A$1 million Bioenergy Fund grant for a second generator. At Wollert's Aurora Treatment Plant, a A$1.7 million green hydrogen pilot continues, with A$11.9 million of state money for a permanent facility conditional on its success.

The harder target

Yarra Valley Water has committed to cut Scope 3 emissions by 67% by 30 June 2030 from a 2023-24 baseline of 186,979 t CO2-e. It reported 101,608 t of Scope 3 emissions in FY2024-25, though the scope or method may differ from the baseline.

The report explains how far the utility's energy self-supply has come, what the offsets and the Scope 3 target mean for its operations to 2030, and which energy milestones fall into the 2028-33 price period. The full report, Water Utility of the Future: Yarra Valley Water, is available for USD 499. For a free overview, read the Yarra Valley Water Utility Snapshot.

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