A proposed waste incinerator in Victoria’s west, fiercely opposed by locals and both state and federal MPs, has failed to secure government approval.

The large waste-to-energy facility earmarked for Lara would have been the first in a so-called “ring of fire” of projects circling Melbourne, and would have burnt about 400,000 tonnes of waste every year, generating 35MW of electricity.

An artist’s impression of the proposed Prospect Hill International waste-to-energy plant in Lara.

An artist’s impression of the proposed Prospect Hill International waste-to-energy plant in Lara.

The project was stridently opposed by residents, state Labor MP Ella George – who described the project as lacking any “social licence” – and federal MP and Deputy Prime Minister Richard Marles, among others.

On Wednesday, Recycling Victoria announced it had issued seven licences to energy facility operators to process a capped maximum of 2.35 million tonnes of waste a year.

It said the cap was designed to prevent over-reliance on waste-to-energy incineration as a solution to the state’s waste disposal.

The seven licences were granted to Cleanaway Operations, HiQ EFW Victoria, Knox Transfer Station Pty Ltd (with a location to be confirmed), Liquid Power Co Pty Ltd, Melbourne Water Corporation, Recovered Energy Laverton Pty Ltd and Zerogen Holdings Pty Ltd.

Most of the projects were still at feasibility stage, Recycling Victoria said.

Under laws Energy Minister Lily D’Ambrosio introduced into parliament in 2022 establishing Victoria’s waste-to-energy scheme, the amount that could be burnt was to be capped at 1 million tonnes a year. The cap is now 2.5 million tonnes per financial year.

The Lara facility, north-east of Geelong, would have burnt a combination of residential, commercial and industrial waste.