On Saturday Energy, Environment and Climate Change Minister Lily D’Ambrosio announced the $650,000 of state funding for the $2.4 million project which will be based at the Daylesford Transfer Station.  

The City of Ballarat Council was hoping to obtain funding from the 2017/18 federal budget earlier this year but is yet to receive any allocation.  

Council is hoping either state or federal government will chip in $2 million to match $16 million of private investment.   

Ms Linley said she expected the larger Ballarat project would be able to go to market within the next 12 months and be completed the next five years. 

“We’re encouraged by the announcement from the minister today that the Hepburn project's been funded, but what we're talking about is a much larger scale that’s looking to relieve 30 thousand tonnes of waste which goes to Smythesdale,” Ms Linley said. 

When completed the facility in the Ballarat West Employment Zone will take waste from Ballarat and neighbouring municipalities to provide power for the city’s growing business hub. 

If the project is unable to attract direct funding from the state or federal governments council will look towards a public-private partnership to stay on track. 

“We're confident there are opportunities to make money out of this and that there will be plenty of private sector interest,” Ms Linley said.  “We need to have a pathway forward and we definitely need to have that work occur.” 

Stage one of the Hepburn project is expected to get underway in the next six months and should be completed by the end of 2019. 

The plant will run a closed loop system where a turbine and an aerobic digester will turn food waste into heat and electricity.   

The facility, which will be the first of its kind in Australia, will handle more than 2000 tonnes of waste a year will lead to a $280,000 decrease in waste costs for the shire.  

Hepburn Shire mayor Sebastian Klein said the announcement was the culmination of six years of research and advocacy.  The proposal had previously received state government grants to conduct feasibility studies.

“It points to the value of looking at local networks when trying to find energy solutions,’ Cr Klein said. 

Feasibility studies are also underway for stage two of the project which will allow the plant to feed back into the gas network and power council offices. 

The facility will employ up to 10 full time staff once stage two is completed. 

Ms D’Ambrosio said she hoped the project would serve as inspiration to other municipalities and was supportive of pushes from other councils such as Ballarat.

“This has generated discussion across different councils now to go for bigger project,” Ms D’Ambrosio. 

“This is something that can be expanded on quite readily and because of the interest I’m very confident this will grow.”