FOGO Contract Extension Hinges on Performance and Council Approval

Long-Term Contract Boosts MyEco’s Revenue Visibility

MyEco Group Ltd (ASX:MCO) has locked in a contract expected to deliver $6.8 million in revenue over up to five years by supplying compostable caddy bin liners to Penrith City Council’s Food Organic and Garden Organic (FOGO) program. This deal extends an eight-year relationship and positions MyEco as a key supplier amid NSW’s legislative push to mandate FOGO recycling by 2030.

The initial term is three years with options for two additional one-year extensions, subject to mutual agreement and satisfactory performance. Penrith City Council services over 84,000 households with its FOGO program, which is ahead of the NSW government’s staged rollout requiring all households to separate organics from general waste by mid-2030.

Contract Reflects Growing Demand for Compostable Solutions

Penrith’s tender process highlighted MyEco’s high standards in quality, safety, and environmental compliance, alongside a robust integrated supply chain from resin manufacturing through to bag production. The company’s proprietary compostable liners and distribution model impressed the council, which noted MyEco’s consistent product quality and service levels.

MyEco’s CEO Marie de Perthuis emphasised the role of the company’s new online ordering portal for council residents, a differentiator in the tender that streamlines access to compostable liners and supports councils new to FOGO programs. This digital service complements MyEco’s broader strategy to capture opportunities created by expanding organics recycling mandates across Australia.

Environmental and Financial Benefits Underpinning FOGO Growth

Independent studies cited in the announcement show that FOGO programs using compostable liners can boost household participation by around 10% and increase organics capture by 30%. Such diversion translates to nearly 3 million tonnes of CO2 emissions avoided annually, equivalent to planting over 4 million trees or removing more than 660,000 cars from the road.

Financially, councils can expect average annual savings of $600,000 from reduced landfill costs due to organic waste diversion. These metrics underscore why councils like Penrith are accelerating FOGO rollouts, creating a growing market for suppliers like MyEco, which recently launched a new range of certified recycled bin liners exclusive to Woolworths stores nationwide, expanding its product footprint in retail channels 95% GRS-certified PCR bin liners.

Contract Timing Aligns with MyEco’s Growth and Funding Initiatives

The contract award follows MyEco’s recent capital raises through convertible notes aimed at supporting product innovation and expanding its sustainable packaging range. These funding rounds have bolstered the company’s cash position and underpin its strategic growth initiatives, including scaling its council-focused services and product development $0.92M Convertible Note Raise.

While the contract’s full five-year value depends on performance and mutual agreement, it provides meaningful medium-term revenue visibility and reinforces MyEco’s position as a trusted partner for local governments navigating new recycling mandates. The company’s vertically integrated manufacturing and distribution model, spanning Australia, China, and global markets, further supports its ability to meet growing demand for compostable packaging solutions.