The Australian Conservation Foundation (ACF) has welcomed the Federal Government’s announcement of six new grants to cut emissions from industry but expressed its disappointment that one of the grants has gone to an underground coal mine.
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In response to the announcement of six new grants to cut emissions from industry, the Australian Conservation Foundation’s national climate policy adviser Annika Reynolds said: “It’s great to see the federal government helping industrial and manufacturing facilities make the switch to more efficient and cost-effective clean processes, reducing reliance on outdated fossil fuels.
“A future made in Australia starts with switching the fuel sources for existing heavy industries and helping big power users like aluminium smelters use energy more efficiently.
“This sort of investment is vital for Gladstone, Kwinana, Geelong and other industrial centres so energy intensive sectors can remain internationally competitive and continue to provide jobs for workers while being part of the clean energy transition.
“ACF welcomes government investment in reducing emissions from ammonia production and investment in renewable energy systems that displace gas from industrial processes.
“These are the kinds of opportunities that enable Australian industry to reduce its reliance on climate-damaging gas.
“We are, however, disappointed by the government’s decision to provide one of these grants to the Kestrel underground coal mine in the Bowen Basin.
“While the $37 million grant will help the mine reduce ventilation methane emissions – a significant and under-reported source of climate pollution in Australia – ACF believes the public should not foot the bill on a technology upgrade for a mine that is seeking approval to extend its operations to 2050.
“There should be no further government handouts to fossil fuels; it’s time for the coal mining sector get on with reducing its own emissions. “We urge the federal government to keep investing in the clean industries that will power Australia’s future.”
$91 million announcement
The ACF comments were in response to a $91 million announcement by Climate Change and Energy Minister, Chris Bowen, and Minister for Industry and Science, Ed Husic, on July 12.
The ministers described a package for Australian industries that would support them to cut more than 1 million tonnes of climate pollution a year with a $91 million investment under the Powering the Regions Fund from the Albanese Government.
Following a $330 million investment in 9 projects in April this year, the Powering the Regions Fund is supporting 6 new projects to help significantly cut emissions from some of Australia’s largest emitters. Each dollar of support will unlock two dollars of industry investment in these projects.
The projects will lower energy use, swap out fossil fuels with cleaner alternatives and cut more than 1 million tonnes of climate pollution each year, the equivalent to taking over 240,000 cars off our roads.
These include projects in the aluminium, mining, fuel refining and chemical production industries, which will create new jobs and support existing jobs in regional communities across Australia.
The 6 grants include:
- $37.2 million to reduce ventilation methane emissions at Kestrel Coal in the Bowen Basin, Qld
- $28 million for a solar and battery storage system at Incitec Pivot Fertilisers in Phosphate Hill, Qld
- $9.8 million to deploy emissions capture technologies at the Dyno Nobel ammonium nitrate facility in the Bowen Basin, Qld
- $7.5 million to install a low emission waste gas incinerator at CSBP Limited’s sodium cyanide plant in Kwinana, WA
- $5.4 million for energy efficiency upgrades at the Boyne Aluminium Smelter in Gladstone, Qld
- $3 million for electrification at the Viva Energy Refinery in Geelong, Vic.
Minister Bowen said the grants would help key industries thrive throughout Australia’s net zero transformation.
“This $91 million investment provides the right support at the right time to help Australia’s industries drive down emissions,” Minister Bowen said.
“These industries have traditionally been very energy intensive and hard to abate. These grants will help them make their fair contribution to our national targets.
“The grants unlock technologies that have not been deployed at scale in Australia, including cutting methane from the ventilation air shafts of underground coal mines. A number of the projects cut nitrous oxide, which has 265 times more warming potential than CO2. By demonstrating these technologies, they can more quickly be rolled out across Australian industry.”
“Australian industry is critical to delivering a Future Made in Australia, supporting hundreds of thousands of jobs while our nation transitions to a low-carbon future,” added Minister Husic.
“We know they’re working hard to cut emissions, power our economy and create a greener future, that’s why we’re ensuring they have the right support in place to make the most of new technologies and seize opportunities in a shifting global economy.
“Through these investments 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.”