Australia’s Offshore Resources Decommissioning Roadmap

4. Supporting new jobs and investment in responsible recycling and waste management

For every job in landfill there are 3 jobs in recycling (Access Economics 2009). Australia’s recycling industry also provides one in every 142 jobs in the domestic economy (AEAS 2023). Decommissioning will produce a significant volume of recyclable, as well as potentially reusable, materials, including steel, concrete and plastic. The majority of this material will need to be brought onshore for processing, which can support jobs and investment into Australian businesses. 

There are also opportunities to embed sustainability principles and drive demand for recycled materials. For every tonne of scrap that is used for steel production, Australia avoids 1.5 tonnes of carbon dioxide emissions (KPMG 2023). When managed responsibly and sustainably, a domestic decommissioning industry will help deliver outcomes against the government’s circular economy framework. 

Material management

Under a base case of full removal, about 5,695 kilotons of decommissioning material removed from offshore oil and gas facilities and projects in Australia will need management through recycling, disposal, or storage (CODA 2022b). To process the scale of decommissioned material there needs to be capacity to receive around 120 kilotons of material each year (CODA 2022b). This material includes around:

  • 3,500 kilotons of steel
  • 1,400 kilotons of concrete
  • 400 kilotons of plastics
  • 60 kilotons of hazardous material including naturally occurring radioactive materials (NORMs) (CODA 2022b).
Material inventory by typology. Full description follows.

Estimated total inventory of materials from Australian decommissioned infrastructure by typology (CODA 2022b)

Vertical bar graph that demonstrates the estimated kilotons of materials currently offshore that need to be decommissioning including ferrous, concrete, plastics, other, non-ferrous, hazardous materials or naturally occurring radioactive materials and marine growth that are present on either the platform, floating asset, pipeline or subsea.

3561 kilotons of ferrous materials in the platforms, floating asset, pipeline and subsea. 

1389 kilotons of concrete in the platforms, pipelines and subsea.

398 kilotons of plastics in the pipelines and subsea.

174 kilotons of other material in the platforms, floating assets and pipelines.

96 kilotons of non-ferrous in the floating asset and pipelines.

60 kilotons of hazardous materials or naturally occurring radioactive materials in the platforms and pipelines.

Marine growth is 17 kilotons on the platforms.

The recycling and waste management phase of decommissioning poses significant innovation opportunities for Australia. There are gaps in understanding the impact of contaminants on the environment and ecosystems, the possibilities for recycling pathways and technologies, and for more efficient cleaning and waste management processes (ATSE 2024).

The sheer volume of material that needs to be recycled and reused in the future provides opportunities to increase the size of Australia’s downstream recycling and waste management industry. Firms are already building capacity to manage more recycled materials coming from decommissioning as well as accelerating commitments to build a circular economy. Ongoing developments within industry, including advancements in recycling technology, are likely to see recycling capacity for concrete and plastics expand in the future (KPMG 2023). 

Recycled steel could increasingly be used as a feedstock for steel mills as new electric arc furnaces come online with the transition to lower emissions and green steel. Australia’s steel industry employs over 100,000 people, with a skew to regional areas, and generates $29 billion in annual revenue (ASI 2023). Stakeholders have noted industry forecasts suggest a significant increase in the demand for processed scrap steel and a large amount of steel required for Australia’s renewable energy transition. Decommissioned oil and gas infrastructure is one possible source. 

The Australian Government is investing $250 million in new and upgraded recycling infrastructure through the Recycling Modernisation Fund. The Fund will see over $1 billion of investment in recycling infrastructure, with contributions from the states and territories and industry. The government’s support for a circular economy will provide important signals to industry on the expectation to manage materials responsibly. It will also drive demand and supply for recycling services. 

Materials and potential pathways. Full description follows.

Materials predicted to be returned to shore for reuse, recycling, or disposal in Australia across a projected time frame of 2023–2060 and indicative material management pathways (CODA 2022b; CSIRO 2024a).

Depictions of the various materials that need to come onshore including ferrous (steel), concrete, plastics, non-ferrous metals, hazardous wastes, marine growth and other. Materials can be reused or repurposed, recycled, exported, disposed of or another processing option for other materials.

In total there is 5700 kilotons materials to shore.

3560 kilotons of ferrous (steel) that can be reused or repurposed, recycled or exported.

1390 kilotons of concrete that can be recycled or disposed.

Less than or equal to 400 kilotons of plastics that can be reused or repurposed or exported.

96 kilotons of non-ferrous materials that can be reused or repurposed or exported.

Less than or equal to 60 kilotons of hazardous wastes that needs to be disposed of.

Less than or equal to 20 kilotons of marine growth that needs to be disposed of.

Other materials make up 174 kilotons and the potential pathway is dependent on the specific material.

Embedding circular economy principles

Titleholders and those contracted to do decommissioning have a social responsibility and regulatory requirements to appropriately manage the resulting material and waste. Steel, plastic and concrete are all recyclable. Recycling offshore oil and gas infrastructure at end of life, particularly steel, is the model in overseas jurisdictions conducting decommissioning. In Norway, as much as 98% of steel from offshore decommissioning is recyclable (France24 2022). Plastics recycling is possible but more difficult with many different types of polymers all needing their own recycling pathways. 

Spotlight: Supporting responsible recycling

The Australian Government’s National Waste Policy provides a national framework for waste and resource recovery in Australia. The 2019 National Waste Policy Action Plan sets a target of recovering 80% of all waste by 2030.

The Recycling Modernisation Fund is a national initiative that is expanding Australia’s capacity to sort, process and remanufacture glass, plastic, tyres, paper, and cardboard. 

The National Reconstruction Fund supports 7 priority areas of the Australian economy including renewable and low emission technologies (inclusive of recycling and resource recovery). 

Domestic reprocessing of steel, plastics and concrete is the preferred pathway. Technical needs, capacity, transport costs and export markets all factor into material management considerations (CSIRO 2024a). Industry incorporating circular economy principles in decommissioning projects will support life extension of infrastructure and reuse, and promote domestic material management (CSIRO 2024a).

NOPSEMA recognises that the removal of offshore infrastructure can have potential impacts on coastal and onshore environments. To manage these impacts, NOPSEMA takes a stewardship approach (NOPSEMA 2023b). This means titleholders need to show that they have considered the indirect impacts of the activity, including the waste pathway. Once infrastructure reaches Australian state waters and land other regulations apply, such as those on hazardous waste. Disposal and storage are the dominant approaches for hazardous wastes needing permanent management, including naturally occurring radioactive materials.

Actions

To support responsible recycling and waste management outcomes, the Australian Government will:

  • work with states and territories to link decommissioning industry participants with green metals manufacturers, and promote onshore value-adding opportunities for decommissioning offshore infrastructure
  • support the decommissioning industry through actions by the Offshore Decommissioning Directorate to:
    • develop and deliver research and guidance on key waste management and recycling needs in decommissioning, including research innovation opportunities in decommissioning and investigating mercury standards in decommissioned material
    • link into opportunities under existing government initiatives on recycling and waste management.