This resource is actively maintained and updated to reflect ongoing enquiries and feedback from the community. If you require further clarification or have a specific question not addressed below, we encourage you to contact our team here.
Cenagen is proposing to transform the former Kandos cement works into an
Advanced Methanol Production and Greenhouse Facility. Cenagen’s proposal
involves a series of process stages to convert Processed Engineered Feedstock
(PEF) into green methanol, with carbon dioxide from the process being used to
enhance the growth of food produce and flower crops in a purpose-built 10-hectare
greenhouse facility on the site.
Kandos has a proud history of industrial innovation, and Cenagen sees this project as an opportunity to bring that spirit into a new era of Australian industry.
The former cement works site is also well serviced with significant existing infrastructure including a rail siding, power, water and sewer connections, and internal roads, making it already well-suited for industrial reuse.
Cenagen is an Australian-owned company focused on decarbonising Australian industry. Our mission is to pioneer clean and net-zero emission waste solutions and agriculture to empower and support local communities while forging a brighter and greener future for all.
The Cenagen facility is designed to be a driver of the state's circular economy. It directly assists in delivering mandated outcomes under the NSW Climate Change Adaptation Action Plan 2025-2029 and the NSW Sustainable Materials Strategy 2041 by diverting hundreds of thousands of tonnes of material from landfill.
Cenagen’s facility proposes to divert 450,000 tonnes of residual waste from landfill every year. To put this into perspective, the facility is capable of processing the equivalent landfill-bound waste of approximately 350,000 Australian households (or 875,000 people) annually. This process turns what was previously an environmental liability into a resource that fuels low-carbon shipping and regional agriculture.
Currently, Australia relies heavily on imported fossil fuels to power our maritime and heavy transport sectors. By transforming Processed Engineered Feedstock (PEF) into low-carbon liquid methanol right here in NSW, we can provide a domestic alternative that can reduce some of our reliance on international supply chains and imported fossil fuels. Kandos will not just be managing residual materials; it will be actively producing low-carbon liquid fuel to help power Australian shipping logistics.
While CO2 is often seen as a waste product in other industries, our process captures and purifies it to super-charge the growing environment in our greenhouse. This CO2 enrichment accelerates plant growth and creates a high-yield environment for fresh food and flowers.
Because this high-tech setup is fully controlled and resource-efficient, it isn’t affected by the droughts, floods, or extreme heat that can hurt traditional regional farming. For Kandos, this means we can guarantee consistent harvests and provide 300 to 350 stable, year-round jobs that aren't at the mercy of the weather.
Cenagen is currently in the early planning stage. In the coming months, we will lodge our Scoping Report to request the Secretary’s Environmental Assessment Requirements (SEARs) from the NSW Department of Planning. The submission of the Scoping Report is the first step in a rigorous, multi-layered approval process to obtain State Significant Development (SSD) approval and an Environment Protection Licence (EPL). As an SSD, the Proposal will be assessed directly by the NSW Minister of Planning.
Determination will likely happen in 2027/2028.
Details regarding the plant's life expectancy will be outlined in the development application and the Environmental Impact Statement (EIS). While 30 years is typically considered in applications for similar proposals, the lifespan of this facility would likely be extended with sufficient upgrades and bring another 100 years of prosperity to the region.
Our commitment to Kandos goes beyond jobs and infrastructure. We recognise that the true strength of this region lies in its community spirit and the incredible dedication of the town's volunteers who support its social fabric. We want to be a good neighbour, which means actively backing grassroots efforts, which is why we already proudly sponsor the local events and vital organizations that bring people together.
Once the facility is fully operational, Cenagen has pledged to contribute $2.4 million every year back to the community. To ensure this funding makes the biggest possible impact, we will decide how it is spent, whether on infrastructure upgrades, local initiatives, or community events, is with direct consultation with local representatives and organisations.
Furthermore, Cenagen will be entering into a Voluntary Planning Agreement with Mid-Western Regional Council to ensure that the success of our investment delivers a dedicated and lasting benefit to the region for decades to come.
Community engagement is an ongoing priority for Cenagen. As the project progresses through the extensive planning and environmental assessment phases, there will be many opportunities for the public to provide feedback and participate in consultations. We encourage residents to check the Cenagen website regularly (and/or drop into our Kandos shopfront) for updates, future consultation session dates, and project news.
Gasification is a manufacturing process that converts carbon-based materials (like solid waste) into a gas. Unlike incineration, which uses a lot of oxygen to burn waste, gasification heats the material in a low-oxygen environment. Because there isn't enough oxygen for the material to burn, it breaks down chemically. This releases a gas called Syngas. This Syngas is captured, cleaned and used as the building block to make methanol and the CO2 (which is purified to food grade) to enrich the greenhouse.
No. We do not burn waste. Incineration relies on combustion which creates ash and smoke. Cenagen uses advanced gasification technology, which is a manufacturing process where we heat the feedstock in a low-oxygen environment. Because there isn't enough oxygen to sustain a fire, the material doesn't burn; instead, it breaks down chemically into Syngas which is then chemically converted throughout the process
Older facilities usually treat waste as a problem to get rid of, either by burying it or burning it. We treat it as a valuable ingredient. We use a chemical process that breaks the material down without combustion, allowing us to rebuild it into entirely new products. By putting our advanced gasification plant, methanol production, and a commercial greenhouse all on the exact same site, the “leftovers” from one process become the input (or “ingredient”) for the next. The purified carbon dioxide goes straight into the greenhouse to help grow food and flowers, and the leftover solid material is used for construction applications and fertiliser. Turning everyday waste into low-carbon liquid fuel, fresh food, fertiliser, and construction materials all at the same time makes Cenagen the first facility of its kind not only in Australia but across the world.
Yes, gasification is a technology that is proven globally. Countries such as Canada, Japan, and several within Europe have been successfully gasifying solid waste at a commercial scale for many years.
Methanol is a clear liquid fuel usually made from natural gas (which is a fossil fuel). Green Methanol is chemically identical to methanol, but it is made from renewable sources or engineered feedstock. Because it is made from material that already exists (rather than drilling for new oil or gas), it has a significantly lower carbon footprint.
Green Methanol is particularly valuable in the shipping industry, which is under pressure to decarbonise. New methanol-powered fleets are entering the market, and the Cenagen facility presents an opportunity to position Australia at the forefront of a decarbonised shipping industry
No. To sell our product to the international market, we must meet rigorous sustainability certification standards (such as ISCC) Early modelling indicates our process achieves an emissions reduction of up to 88% of Greenhouse Gas Emissions (GHG) We will be required to independently verify these figures as the project progresses.
The Advanced Methanol Production Facility uses Processed Engineered Feedstock (PEF).
PEF will be delivered to the site from Sydney by rail in enclosed shipping containers and stored in fully enclosed facilities before processing. Detailed management protocols for stockpiles will be addressed in the Environmental Impact Statement.
The Advanced Methanol Production Facility will also manufacture its own PEF from the smaller volumes of regional waste that is currently sent to local landfills.
Feedstock is the term used to describe any material used to fuel an industrial process. Historically, industry relied on fossil fuels, including oil, coal and natural gas, as feedstocks. Modern industry seeks renewable and alternative feedstock sources.
Processed Engineered Feedstock (PEF) is an alternative fuel made from household and commercial waste. It is created by processing waste through removing hazardous materials, sorting, shredding and refining to create an even and consistent fuel. PEF has been manufactured in Australia for nearly 20 years and has a range of industrial uses, including use in cement manufacturing.
PEF bales will be wrapped and stored in sealed shipping containers inside enclosed buildings.
Municipal solid waste (MSW) is a technical term for everyday rubbish of households (waste that is placed in the bin with the red lid)and commercial and industrial waste (C&I) is a technical term for the everyday rubbish of businesses. These are the materials that will be used to make Processed Engineered Feedstock (PEF), which feeds the Cenagen facility.
PEF is not the same as raw MSW or C&I. PEF is processed and refined into an even and consistent product. PEF – and not MSW or C&I, is used in the gasification process. Gasification of unprocessed MSW or C&I is not being proposed at the Advanced Methanol Production and Greenhouse Facility.
Consistency is key to a safe operation. We do not feed raw, variable waste into the gasifier. We solve this by pre-processing the waste into a standardised Processed Engineered Feedstock (PEF). A state-of-the-art PEF production facility with 6 different sets of optical sorters will help achieve a more homogenous feedstock. By removing hazardous materials, then shredding, drying, and sorting the material we will ensure the gasifier receives a uniform fuel source.
Cenagen has also undertaken extensive modelling of the current waste composition in NSW, waste composition post-FOGO, as well as the waste composition of Germany (which is widely accepted as being 10-15 years ahead of Australia in regards to recycling rates) to ensure that its technology and plant can handle a wider variability of waste composition to future-proof Cenagen’s operations and processes.
No, Cenagen supports the waste hierarchy and will not be “competing” with recycling. The facility is designed to accept residual waste (such as the contents of the bin with the red lid), which is the material that remains after households and businesses have recycled. The front-end processing plant will feature advanced separation technology (including bag splitters, optical sorters, magnets, and AI systems). This acts as a safety net to recover any recyclables (such as metals or rigid plastics) that were missed, ensuring they are sent for recycling before the remaining waste is processed into Processed Engineered Feedstock (PEF).
No, we will not accept any of these materials.
Our Environment Protection Licence (EPL) will preclude the acceptance of hazardous or non-compliant waste; accepting such materials would be a direct breach of our licence and the conditions of our specific resource recovery order.
To ensure absolute compliance, our acceptance protocols include an initial screening, followed by advanced sorting and processing designed to segregate any hazardous or non-compliant waste types.
No. The facility is designed to process Processed Engineered Feedstock (PEF) into methanol, not to store waste. PEF is made from non-recyclable waste and is processed by the time it arrives in Kandos.
Some waste will be processed into PEF on-site at Kandos. This is designed to fill a gap in Central West Orana’s resource recovery infrastructure and will be for regional waste only. PEF is a commercial saleable product with not just a commercial value but more importantly a great environmental value.
The primary by-product of gasification is a vitrified inert slag. This material is non-leaching and safe. The non-leachable slag material will need to meet the NSW EPA’s resource recover orders and it will be a saleable product for use as a recycled aggregate in road base or construction applications, and thereby avoiding landfill.
With the national 2050 Net Zero target approaching, Cenagen is aiming to lead the way by developing a facility designed to target Net-Zero emissions from day one. Our strategy is built on three key pillars of the circular economy:
Independent modelling by specialist engineering firms indicates that this integrated approach will achieve net-zero outcomes decades ahead of legislated deadlines. As we progress through the planning and environmental assessment phases, we will continue to refine this modelling to ensure our facility sets a new benchmark for sustainable regional industry.
The CO2 generated by the process undergoes a multi-stage purification and filtration process (scrubbing) to ensure it meets strict food-grade standards before it is fed into the greenhouse. This ensures the gas is pure and fed at safe levels for growth and workers within the greenhouse.
Our current modelling shows we will likely produce more purified CO2 than the 10-hectare greenhouse requires. To make sure every bit of this resource is used, we are focusing on two paths. The first is our liquefaction plant to liquify the CO2 (after purification) so it can be sold to industrial partners for uses like food and refrigeration processing and processes Secondly, we are developing a patent for a high-tech process (concrete sequestration) that injects captured CO2 directly into concrete as it is mixed. This doesn't just lock the carbon away permanently; it has the potential to reduce the amount of cement needed in the mix by up to 30% to 50%. Though the amount of CO2 we can sequester will only be 500g per cubic metre, the real environmental win is the reduction of cement needed. Cement production is the world’s second biggest polluter.
The waste receiving and processing areas are fully enclosed within buildings that use negative pressure, advanced odour controls, and fast-acting doors to prevent odour escape. Regarding noise, we are acutely aware of the site's proximity to the town. As part of our Environmental Impact Statement (EIS), we will undertake detailed acoustic modelling to ensure operational noise is buffered and meets the limits mandated by the NSW Environment Protection Authority’s (EPA) regulations.
While the process expects some hydrogen sulphide to be present in the gas, which is a gas known for its distinct “rotten egg” smell, the facility incorporates a Sulphur Redox Plant to remove the hydrogen sulphide from the gas stream, which prevents odour emissions. Elemental sulphur will be made and sold into agricultural markets as a fertiliser.
A detailed assessment will be developed for the Environmental Impact Statement.
Water supply options will be assessed in detail during the development of the application and within the Environmental Impact Statement (EIS). The process will not affect the local potable water supply.
The facility's processes produce wastewater, which will be treated and continually reused via an onsite state-of-the-art water treatment plant. There will be no water discharge from the site.
Further, rainwater will be captured off of the roofs of the 10-hectare greenhouse and on-site buildings to be reused in the process.
Once operational, the facility will use materials delivered to the site by rail and truck.
Cenagen will use existing rail freight infrastructure to import Processed Engineered Feedstock (PEF) from Sydney, and to transport end-products. Trucks will be used to deliver regional waste to the facility and to transport agricultural products from the greenhouse. Some by-products, including slag aggregate and fertiliser will also be transported by truck.
The current site entrance is on Jamison Street. Cenagen is assessing the viability of a second southern entrance, which would reduce truck movements away from Kandos. Further details will be confirmed as design progresses.
Construction will also generate temporary increases in traffic. Road impacts, including routes, volumes and timing, will be formally assessed in the Environmental Impact Statement and will be available for community feedback.
Every industrial facility has potential risks, which is why we are designing a system of robust primary safety controls backed up by secondary systems. As part of our planning application, we will produce detailed reports (including a Fire Safety Study, a Hazard and Operability Study, and a Preliminary Hazard Analysis) that highlight every potential risk and specific mitigation measures. These reports will be scrutinised by safety regulators and released to the local community for review.
We will not store vast quantities of methanol on-site; it is a valuable product that is transported to market regularly. Any on-site storage will feature advanced leak detection, bunding, and fire suppression systems similar to a modern fuel terminal. We do not anticipate Bushfire risk mapping for Kandos to change as a result of the proposal.
We estimate the build will take approximately 22 months. We will implement a Construction Environmental Management Plan (CEMP) to manage noise, dust, and traffic during this period. Additionally, a Dilapidation Survey of public infrastructure near the site will be conducted prior to construction to protect local assets.
Once operational, we expect the project to create approximately 300 to 350 permanent, inclusive, full-time jobs. Because this facility combines advanced manufacturing with large-scale agriculture, it requires an incredibly diverse team.
The roles will generally fall into four key areas:
Further, a major priority for us is creating long-term career paths for local youth. We will be offering apprenticeships across our technical and trade departments to ensure young people can gain qualifications without having to leave the region.
In addition to these permanent roles, the estimated 22-month build period will generate significant temporary employment (approximately 400) for local builders, contractors, and tradespeople as we bring this $1 billion investment to life.
We know that bringing in a large construction crew is a great boost for local spending, but we have to manage it carefully. We don't want to take up beds that tourists would normally use, and we definitely don't want to drive up local rental prices. Right now, we are looking into dedicated housing options just for our construction workers. To get this right, we're asking local accommodation providers to fill out a quick survey on our website. This will help us understand what's currently available so we can develop a plan that supports the local economy.
Absolutely. Cenagen will promote a “Local First” policy, meaning jobs will be advertised locally first. We are committed to prioritising residents from Kandos and surrounding towns for employment, subject to candidates possessing the necessary experience and qualifications.
The facility will generate a diverse range of both skilled and unskilled roles, from advanced engineering and technical management to horticulture, logistics, and maintenance.
Yes. A key goal of this project is to reverse the “brain drain” often experienced in regional towns. While we require traditional trades, the facility’s technological calibre also requires chemical engineers, mechatronics technicians, and environmental scientists. By establishing this hub, we are creating high-tech, future-proof career pathways in the Central West, allowing local youth and workers to pursue advanced STEM (Science, Technology, Engineering, and Mathematics) careers without having to relocate to a major city.
This is a priority for Cenagen and we are committed to exploring partnerships with local high schools, regional TAFE NSW campuses, and regional universities to develop training programs and apprenticeships. We want to ensure that students in the region can acquire the specific STEM, technical, and agricultural qualifications required to step directly into the roles this facility will create.
The 300 to 350 operational jobs created will span trades, engineering, administration, maintenance, information technology, agriculture, and floriculture. We are committed to establishing inclusive employment pathways, with targeted opportunities for women in STEM and trades, as well as dedicated employment initiatives for Indigenous workers. By supporting a diverse workforce, we ensure the economic uplift of this $1 billion investment is of benefit across the entire community.
By prioritising local procurement, we aim to be a catalyst for regional business growth. Supplying the Cenagen facility will encourage local engineering firms, maintenance contractors, and transport operators to upskill their workforces, adopt new technologies, and expand their capabilities to service the facility.
We recognise that housing availability is a critical challenge across regional NSW. As part of our Social Impact Assessment for the Environment Impact Statement (EIS), we will be evaluating accommodation requirements for both construction and operational phases. Cenagen is exploring dedicated strategies to ensure our workforce contributes positively to the economy without placing undue pressure on local rental markets.
We expect Cenagen’s facility to draw a wide variety of visiting professionals, specialists, and project partners to the region. This will help drive consistent, mid-week travel, helping to fill accommodation and other businesses outside of peak holiday periods. Furthermore, introducing new people to Kandos for work always creates the possibility that they’ll return with their families to explore the region on the weekends, providing a steady, long-term boost to the local visitor economy.
Respecting the cultural significance of the land is a foundational part of our planning. As part of the Environmental Impact Statement (EIS), Cenagen is undertaking an Aboriginal Cultural Heritage Assessment and are engaging with Local Aboriginal Land Councils and Traditional Owners. Our goal is to ensure heritage is protected and that Indigenous workers have access to long-term career opportunities.
The project will be assessed as a State Significant Development (SSD). This process includes a detailed Environmental Impact Statement (EIS). The EIS will be on public exhibition, and all members of the community will have the opportunity to review Cenagen’s technical data and reports and make a submission. As we progress, we will continue to hold community consultation sessions to share information and answer questions.
The Environmental Impact Statement (EIS) is a comprehensive document that investigates every potential impact the facility might have. It will assess issues such as human health, noise, air quality, traffic and access, hazards, fire safety, hydrology, soil, water, waste management, biodiversity, Aboriginal cultural heritage, European heritage, visual impacts, landscaping, and social and economic matters.
