SYDNEY, AUSTRALIA: Cleanaway Waste Management Limited (ASX: CWY) has announced that it has agreed to buy Australian Eco Oils (“AEO”), a leading collector and processor of used cooking oil (“UCO”), for $39 million.
The deal is expected to be completed in the first quarter of FY24, subject to customary conditions.
AEO, trading under the Scanline brand, processes about 11,500 tonnes of UCO per year from 1,500 customers across 4,000 collection points. The processed UCO is sold to the stockfeed and renewable fuel sectors. The acquisition includes 3 licensed processing facilities in NSW, QLD and VIC with a total capacity of 30,000 tonnes per year, a fleet of 26 vehicles and around 30 employees.
Cleanaway CEO & Managing Director Mark Schubert said that the acquisition provides an attractive entry point into a new, adjacent market for Cleanaway, as UCO is becoming an increasingly important source of feedstock for renewable fuels, such as Sustainable Aviation Fuels and Renewable Diesel.
He said that the business will expand Cleanaway’s service offering to food service customers with more circular and lower carbon solutions. He also said that Cleanaway is exploring other opportunities to extract valuable fats and oils from its waste streams to supply into renewable fuels production, and that Cleanaway would look to buy back renewable fuels to reduce its CO2 emissions and provide a circular solution to customers.
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