The Victorian Government is investing in the state’s manufacturing future with a $10 million grant initiative aimed at reducing energy costs, supporting local jobs, and accelerating industrial electrification in the food and beverage processing sector.
Announced by Minister for Energy and Resources Lily D’Ambrosio and Minister for Industry and Advanced Manufacturing Colin Brooks, the grants are part of Round 3 of the Energy Innovation Fund. The initiative offers up to $2 million per business to replace gas-powered equipment with efficient electric alternatives.
“Industrial electrification is a critical step towards cutting down energy bills for Victorian manufacturing and helping to get the next generation of renewable energy projects off the ground,” said Minister D’Ambrosio.
The grants aim to reduce operational expenses for manufacturers while encouraging the adoption of new and innovative technologies.
One business already exploring electrification is MainStream Aquaculture in Werribee, which recently undertook a feasibility study supported by the VEU Large Energy User Electrification Support Program.
The study showed that replacing two 650kW gas boilers with a 550kW water-sourced heat pump using geothermal water could reduce the site’s gas usage by 70 per cent, saving approximately $113,000 annually with a five-year payback period.
“It’s great to see a local business like MainStream Aquaculture take the lead in energy efficiency, which will help them grow their operations,” said Member for Werribee John Lister.
The electrification effort also supports the Victorian Government’s Gas Substitution Roadmap and Gas Security Statement, both of which outline strategies to reduce gas demand and bring new supply online.
These measures are designed to ease the pressure on Victoria’s declining gas reserves and prioritise gas availability for industries unable to transition away from it.
“We’re helping manufacturers improve their processes to be more energy efficient, reducing their running costs and future-proofing their business,” said Minister Brooks.
Alongside the grants, the Government is investing $5 million in training initiatives to prepare tradespeople for work with electric appliances.
This includes free training for plumbers to install and maintain heat pumps, upskilling construction workers for 7-star all-electric homes, and mentoring programs for electricians and solar installers.
These initiatives build on the Government’s previous $12 million investment, which has already supported the training of more than 6,000 workers in renewable energy and electric appliance installation across the state.
For more information on the Energy Innovation Fund, visit energy.vic.gov.au/grants/energy-innovation-fund.
