The Australian government has revealed a $91 million investment as part of the Powering the Regions Fund, designed to assist Australian industries in curbing their contributions to climate change.
Significant Emissions Cuts Equivalent to Removing Thousands of Cars
This latest allocation of funds is projected to facilitate the reduction of over 1 million tonnes of emissions annually, comparable to taking more than 240,000 vehicles off the roads.
Grants will be awarded to six new projects spanning various sectors, including aluminum, mining, fuel refining, and chemical production, to support the implementation of technologies aimed at lowering emissions.
Stimulating Private Investment for a Green Transition
The investment is anticipated to catalyze an additional $182 million in industry funding, with every government dollar expected to attract two dollars of private investment.
Key Grants for Methane Reduction, Solar Power, and Emissions Capture
Notable grants include $37.2 million for methane reduction at Kestrel Coal in Queensland, $28 million for a solar and battery system at Incitec Pivot Fertilisers, and $9.8 million for emissions capture at Dyno Nobel’s ammonium nitrate facility.
Other beneficiaries of the grants include CSBP Limited in Western Australia, Boyne Aluminium Smelter in Queensland, and Viva Energy Refinery in Victoria.
Government Ministers Emphasize Importance of Industrial Transition
Minister for Climate Change and Energy, Chris Bowen, underscored the significance of supporting traditionally energy-intensive industries in their shift towards lower emissions, stating, “These grants will help them make their fair contribution to our national targets.”
Minister for Industry and Science, Ed Husic, highlighted the role of Australian industry in building a “Future Made in Australia” while transitioning to a low-carbon economy, saying, “We’re continuing to back Australian industry and help them transition to net-zero because a country that makes things creates strong businesses and more high-paid jobs.”
Part of a Larger Funding Initiative for Industrial Decarbonization
This round of funding follows a $330 million investment in nine projects announced in April, contributing to the $600 million Safeguard Transformation Stream within the Powering the Regions Fund.
The program remains open for further applications through the Business Grant Hub.
Mixed Reactions from Environmental Groups
While many environmental groups have welcomed the majority of the investments, the Australian Conservation Foundation has expressed reservations about the grant to Kestrel Coal, contending that the coal mining sector should be responsible for funding its own emissions reductions.
As Australia progresses towards its net-zero emissions goal, these grants represent a substantial step in promoting industrial decarbonization and maintaining economic competitiveness in a changing global landscape.