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Unrecyclable plastic converted into fuel source

Business
News

28/8/2025

3 mins read

Unrecyclable plastic converted into fuel source

Enviro NZ leads the way with innovative solution

Utilising the latest technology Enviro NZ has commissioned a plant that processes unrecyclable plastic and other suitable materials, to create a fuel known as Process Engineered Fuel (PEF).

Operating out of Enviro NZ’s Pōkeno site, the plant processes these materials into PEF which is currently being used by Golden Bay in its cement kiln, as an alternative to imported coal. 

This process recovers value from residual materials that can’t be recycled using traditional channels and would otherwise be wasted, converting them into a new product.


Enviro NZ COO James Rutter says, “This is another New Zealand first developed by Enviro NZ and shows again how we work with our customers to provide the best available solutions for their residual waste materials. ”


The PEF will also reduce the country’s reliance on imported fossil fuel sources and enhances the New Zealand economy.

“We believe that the reduction and simplification of residual materials is best for New Zealand, but while that will take time, we can now offer a solution to businesses for their waste that is unrecyclable using traditional channels,” he says.


Waste materials that aren’t suitable for traditional recycling, including woven polypropylene bags (e.g. flexi skip bags), labels and labels backing, rolls of film and multi material packaging, are used to manufacture the PEF fuel.

The plant utilises world leading technology and machinery to process and combine the residual material into a homogeneous fuel that is consistent and reliable.  


The PEF must adhere to defined boundaries relating to the level of energy it can produce and is designed as an energy source for industrial applications like cement kilns.  

“We’re already working with Health NZ processing expired face masks, along with Nexans processing the plastic casing from power cables,” Rutter says.


“There are many businesses out there focused on reducing the amount of residual material waste that goes to landfill and finding the best way of repurposing these materials. Our new service provides an opportunity for them to achieve this.” 

Golden Bay is an industry leader in the use of alternative waste derived fuel and Enviro NZ’s first customer for the PEF.


General Manager Ben Marsh says, “By using unrecyclable plastics as alternative fuel we believe we will remove approx. 30,000 tonnes of it from New Zealand landfills per annum.

“We believe this is a practical and immediate solution to the current plastic waste problem.  We’re not advocating for more plastic production, but rather encouraging the responsible management of unrecyclable plastic that already exists.”


The Golden Bay cement kiln operates at extremely high temperatures, ensuring complete combustion and preventing the release of harmful pollutants when the plastics are used as fuel.

“This is not incineration as people think of it in the traditional sense. It is energy recovery in a controlled, industrial setting with strict environmental oversight,” Ben says. “Our emission testing confirms that co-processing plastics does not increase harmful emissions.”

Rutter adds that Enviro NZ is looking forward to working with prospective new customers to provide a solution to convert unrecyclable residual materials into a valuable environmentally friendly alternative fuel source.