Turning waste into energy
Most of us see food scraps as the end of something: a banana peel, last night’s pizza crust or leftovers scraped from a restaurant plate. But organic waste still contains energy. And with the right infrastructure, it can become the start of something new.
That is the idea behind an investment exposure within Future Super. In Deeside, on the border of North Wales and England, a new anaerobic digestion plant is being built beside a Toyota engine factory. Once operational, it is designed to turn food and other organic waste into biomethane, electricity and useful byproducts.
The project is a practical example of the circular economy: recovering value from material that would otherwise be discarded and putting it back to work.
This investment is held indirectly through Aberdeen Global Sustainable Infrastructure Partners (GSIP) IV, a global infrastructure fund. For Future Super members, it's one example of how your super can gain exposure to infrastructure being built for tomorrow's economy.
From food scraps to renewable gas
Anaerobic digestion sounds complicated, but the basic idea is surprisingly natural.
Organic material is placed inside sealed tanks without oxygen. Bacteria break it down, producing a mixture of gases known as biogas. This gas is then cleaned and upgraded by removing carbon dioxide and other impurities, leaving biomethane that can be used in much the same way as conventional natural gas without the global warming potential.
The Deeside facility is expected to convert more than 120,000 tonnes of organic waste into biomethane each year, with integrated carbon capture. That biomethane can be supplied to industrial customers or injected into the UK gas network. Some of it can also be used to produce electricity.
And the process does not end with gas. The carbon dioxide removed while the biogas is being processed can be captured, liquefied and sold for commercial use (for example, in the production of fizzy drinks). The organic material left after digestion, known as digestate, can also be used as a soil conditioner or fertiliser.
Instead of treating food waste as a final destination, the system turns it into several economically valuable products.
“You get paid to receive your input,” explains David Allen, who manages the investment for Future Super. “The technology is tried and tested. It’s not a technology risk and the facility has contracted off-takers for several of their outputs already.”
"The extra gas generated will be sold to the UK national energy grid, and carbon can also be stored and sold for commercial use, generating further income.”
Infrastructure investments can earn revenue by providing services that customers, businesses or governments require over long periods. In this case, the project is designed to generate several streams of revenue:
supplying biomethane and electricity to industrial customers
injecting eligible biomethane into the UK gas network
producing electricity through combined heat and power
selling captured, liquefied carbon dioxide
producing digestate that can be used as fertiliser or soil conditioner.
The UK Government also supports the development of new anaerobic-digestion biomethane plants through its Green Gas Support Scheme.
Under this scheme, registered producers receive quarterly payments for 15 years, based on the volume of eligible biomethane they inject into the gas grid. Government policy support like this can provide greater visibility over future revenue, although it doesn’t remove investment, construction or operational risk.
The Deeside facility sits within Aberdeen GSIP IV, its lead investor, in partnership with The Circular Economy Developments. Across its portfolio, the fund looks for infrastructure supported by long-term demand. That may include contracted services, government-backed projects and essential infrastructure people and businesses continue to need.
“Aberdeen’s strength was that they look for Government or quasi-government offtakes,” explains David. “They back new builds, but only with really strong risk allocation contracts with leading construction partners. This is a long-term project with profitable offtake from Toyota, a high-quality offtaker.”
These structures can provide investors with clearer long-term demand or contracted cash flows. However, returns are never guaranteed. The project still needs to be completed, commissioned and operated effectively, while managing factors including construction costs, the supply and quality of organic waste, energy prices and equipment performance.
Investing with tomorrow’s economy in mind
Super is a long-term investment, building over decades. That means understanding not only how the economy works today, but which industries and infrastructure may still be in demand when members retire.
The need to divert waste from landfill isn't going away. Neither is the world's need for reliable energy. As economies look for ways to reduce emissions while keeping industries running, the transition away from fossil fuels is increasing demand for clean energy. At the same time, communities and businesses need better ways to manage organic waste and recover value from it. Infrastructure that can turn waste into usable energy and resources may become increasingly important.
Anaerobic-digestion infrastructure sits where these trends meet.
It provides a way to process organic waste while producing gas and electricity that can replace some fossil fuel use. In some markets and industrial settings where processes cannot yet be easily electrified, biomethane is one pathway for reducing reliance on fossil gas.
Sustainability alone does not make an investment attractive. The project must also demonstrate credible demand, manageable risks and the potential to contribute to long-term returns.
Where it fits into Future Super
The technology is interesting. But for members, the bigger question is how the investment fits into a long-term super portfolio.
Future Super members are not directly invested in the Deeside facility. Exposure is indirect, through an investment in Aberdeen Global Sustainable Infrastructure Partners (GSIP) IV, which is held within a diversified alternatives strategy.
GSIP IV invests across a portfolio of global infrastructure assets rather than this project alone. Its potential future investments span areas including energy transition infrastructure, transport, waste management, social and affordable housing, health and other essential services.
This diversification means the performance of the wider investment is not determined by the Deeside facility alone, and gives Future Super members exposure to a spread of infrastructure opportunities outside Australia.
The transition to a lower-emissions economy is a global megatrend, happening around the world, with different technologies, policies and investment opportunities emerging at different speeds. Looking globally can give long-term investors access to a broader range of opportunities.
“Global infrastructure allows our members to benefit from the full range of high-quality offtakers around the world, and not concentrate into a single country,” David adds. “So any one country or jurisdiction’s change in policy, or change in government, is not going to unsettle a whole portfolio.”
A project in North Wales may feel far removed from an Australian super account. But super is already invested across countries, industries and markets. This diverse exposure is important to reduce risk. The important questions are where that money is going, what risks are being managed and what the investment is expected to contribute to members’ retirement outcomes.
Projects like this are a reminder that your super isn't sitting still.
Building first, proving next
The Deeside plant is nearing completion and due to start generating from late 2026.
This is infrastructure in development, and there will be more to learn: how much organic waste the facility can process, how much biomethane and electricity it produces, how reliably it supplies customers and what financial and environmental outcomes it delivers over time.
For now, Deeside offers a window into the kind of infrastructure a changing economy may require. It’s part of a generational shift towards decarbonisation.
Infrastructure that treats waste as a resource. That supplies energy to established industry. That combines biological processes with modern engineering. And that is designed to earn revenue while addressing a persistent environmental and economic challenge.
Yesterday’s scraps will not solve every part of the energy transition. But with the right technology, customers and commercial model, they can become part of the infrastructure powering it.
That's the thinking behind sustainable super: looking beyond today's economy, to the industries and infrastructure expected to shape tomorrow’s returns.
Your super is already invested in the world. See how Future Super invests for what comes next.
How investing in anerobic digestion works
Future Super members’ exposure to the asset is indirect, through an underlying fund's investment in Aberdeen Global Sustainable Infrastructure Partners IV.
The trustee of the Fund is Equity Trustees Superannuation Limited (ABN 50 055 641 757 AFSL 229757 RSE Licence L0001458.