$91 million to drive down emissions in heavy industry

Joint media release with Minister for Climate Change and Energy Chris Bowen MP

Australian industries are being supported 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 2 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 for Climate Change and Energy Chris 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.” 

Minister for Industry and Science Ed Husic said 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. 

"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."

Organisation
Project Name
Project
Grant
Location
KESTREL COAL PTY LIMITED Kestrel Mine Ventilation Air Methane Abatement Project Cutting methane emissions by using Regenerative Thermal Oxidation technology to abate Ventilation Air Methane from an underground metallurgical coal mine, demonstrating the technology at scale for the first time in Australia $37,225,566 Bowen Basin (QLD)
INCITEC PIVOT FERTILISERS LIMITED Renewable Energy Transformation at Phosphate Hill Displacing onsite gas-fired power generation by deploying a hybrid renewable energy system comprising solar PV and Battery Energy Storage $28,000,000 Phosphate Hill (Cloncurry)
(QLD)
DYNO NOBEL ASIA PACIFIC PTY LIMITED Major Emissions Reduction Project at Dyno Nobel’s Moranbah Facility Cutting nitrous oxide emissions in ammonium nitrate production by a catalytic emissions reduction reactor and deployment of purge gas capture technologies $9,878,085 Bowen Basin (QLD)
CSBP LIMITED New low emissions incinerator for CSBP Kwinana sodium cyanide plant Cutting nitrous oxide emissions in sodium cyanide production by the installation of a new low emissions waste gas incinerator $7,500,000

Kwinana
(WA)
BOYNE SMELTERS LIMITED BSL Carbon Bake Energy Efficiency Improvements Improving energy efficiency of the Carbon Bake Furnace which produces anodes for use in aluminium smelting $5,482,199 Boyne Island (QLD)
VIVA ENERGY REFINING PTY LTD Electrification of Catalyst Cooler Air Blower (CCAB) at the Geelong Refinery Cutting fossil fuel use by electrifying a component of the Residue Catalytic Cracking Unit to remove a steam turbine and gearbox and install an electric motor to power the Catalyst Cooler Air Blower $3,005,532 Geelong
(VIC)

These projects form the second batch of the Powering the Regions Fund’s $600 million Safeguard Transformation Stream, which is currently open for further applications through the Business Grant Hub.