The Environment Protection Authority has fined Cleanaway $15,000 for allegedly storing 15,000 tonnes of waste from the container deposit scheme at Beresfield without a licence.
The authority said in a statement that the waste management company had been sorting and storing bottles and cans at a site which was not licensed to accept them.
An EPA investigation had found Cleanaway had received the waste between November 2018 and October 2019.
Cleanaway stopped receiving waste at Beresfield and began moving it to another site at Kooragang Island after the EPA intervened in December.
EPA director regulatory operations metro north Adam Gilligan said it was unacceptable for Cleanaway to put the environment at risk.
"Cleanaway holds over 30 environment protection licences for waste-related activities in NSW and should be aware of the process to lawfully process and store waste in NSW," he said.
"Investigations found that waste was being stored without proper controls near a stormwater drain, increasing the risk of pollution and environmental harm."
He said the container deposit scheme was designed to remove litter from the environment.
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