Industrial composting in Australia: a plain-English guide for businesses

Industrial composting turns food and garden organics into a usable soil product through licensed, temperature-controlled processing. It's a regulated activity, not a catch-all for anything labelled "compostable". If your business sends organics to a processor, the most useful thing you can do is ask what they actually accept, then keep everything else out.

The main types of facility

• In-vessel or tunnel systems. Composting happens inside an enclosed chamber where air, moisture and temperature are tightly controlled. Common for food waste, with good odour control and a higher build cost.
• Windrows and aerated static piles. Long open piles, turned or aerated. Cheaper to run but need more land and bigger buffers from neighbours. Common for garden organics.
• Modular and drum systems. Smaller set-ups suited to regional councils and lower volumes.

How the process works

1. Receival and inspection. Loads are tipped and checked for obvious contamination.
2. Screening and depackaging. Machines and people pull out plastic film, rigid plastics and other contaminants.
3. Shredding. Material is broken down in size to speed up composting.
4. Active composting. The hot phase, with temperature and oxygen managed to drive rapid breakdown.
5. Pasteurisation. The material is held at high temperature long enough to kill pathogens and weed seeds, in line with AS 4454, the Australian standard for composts, soil conditioners and mulches.
6. Maturation and final screening. The compost stabilises, is screened again, then graded and sold.

Odour, leachate and air quality are managed throughout, and they're a big part of how regulators assess a site.

Licences and rules

• Composting facilities are regulated by state and territory environment agencies. Larger sites need an environmental licence or authority, and the thresholds differ by state.
• See EPA Victoria's guidance on industrial composting or your own state EPA for the rules where you are. Queensland businesses can start with Business Queensland.
• PFAS is a growing focus for processors and regulators, guided nationally by the PFAS National Environmental Management Plan.

What processors accept, and what they reject

Each facility sets its own acceptance list, but the general pattern looks like this:

• Usually accepted: source-separated food organics, garden organics, untreated timber.
• Usually rejected: conventional plastic film and bags, glass, metal, treated timber, and packaging with no recognised compostable certification.
• Compostable packaging: depends on the facility. Some accept certified compostable items, others exclude them because they're hard to tell apart from conventional plastic on the sorting line.

Contamination is the processor's biggest problem. A load full of plastic film can be downgraded or sent to landfill, and the finished compost has to meet quality standards before it can be sold.

Industrial vs home compostable

Not the same thing. AS 4736 certifies products for industrial composting. AS 5810 certifies products for home composting, under cooler conditions over a longer timeframe. Overseas schemes such as TÜV Austria's OK compost HOME also certify home compostability. Our guide to AS 4736 vs AS 5810 explains the difference.

Whatever a product is certified for, your processor's acceptance list is what decides where it can go.

A simple checklist for businesses

1. Ask your waste contractor exactly what their processor accepts, including whether compostable packaging is allowed.
2. Check certifications on any packaging you buy: which standard or scheme, and for which environment (industrial or home).
3. Train your team. Clear bin signage and a quick briefing stop most contamination before it starts.
4. Keep records of what you buy and send, in case a load is ever queried.
5. Start small. Trial a new product or waste stream before you scale it.

Where ZERO fits

ZERO's bags and wrap are certified home compostable, so they're designed to break down in a home compost bin, not built specifically for industrial facilities. For businesses with on-site composting, a worm farm or a council that accepts them in FOGO, they're a simple swap for conventional film and bags.

• Compostable Produce Bags – Commercial Roll: 470 single-use roll bags (about 8.5c a bag) for greengrocers, supermarkets and markets. Certified home compostable (TÜV Austria OK compost HOME). Trialled at IGA Berry (NSW) for two weeks, with a 3 kg load limit.
• Cling Wrap: made from bioplastic, mainly sugarcane-based PLA with about 20% PBAT. Certified home compostable (DIN CERTCO; TÜV Austria OK compost HOME).
• Commercial Cleaning Cloth ("Blue Roll"): a plant-fibre cloth designed with chefs for commercial kitchens. Certified biodegradable in soil (TÜV Austria OK biodegradable SOIL), so it breaks down in soil at everyday temperatures, no compost heap needed. You can add it to your home compost too. For commercial organics bins, check your processor's rules first.

Start with one swap and one conversation with your waste contractor.

FAQ

Will my processor accept compostable packaging?

It depends on the facility. Ask your waste contractor directly rather than relying on the label.

What is AS 4454?

The Australian standard for composts, soil conditioners and mulches. It sets quality and pasteurisation requirements for the finished product.

Is industrial composting the same as FOGO?

FOGO is the collection service. Industrial composting is what happens to that material at the processing facility.