ARENA backs decarbonisation in manufacturing with $12M funding for low-emission tech

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Image credit: ARENA

The Australian Renewable Energy Agency (ARENA) has allocated over $12 million to help major manufacturers reduce emissions by testing low-emission technologies for process heat and lowering dependence on natural gas.

McCain Foods, Sugar Australia and Blackmores are the latest recipients of ARENA’s funding, which is aimed at accelerating the adoption of clean technologies in the manufacturing sector, the agency announced in a news release. 

ARENA CEO Darren Miller said the agency’s support through initiatives such as the Industrial Transformation Stream is crucial to driving change in energy-intensive industries.

“Achieving Australia’s emissions reduction goals requires that our energy-intensive industries and manufacturers develop and execute clear strategies to integrate renewable energy into their operations,” Miller said. “These grants are designed for forward-thinking businesses ready to pioneer and incorporate new applications of renewable energy technologies.”

Miller added that the projects “will provide a blueprint for similar businesses to replicate and scale up these solutions nationwide.”

McCain Foods will receive $7.38 million to introduce two heat recovery systems at its Ballarat potato processing site. The systems will recover high- and low-temperature heat from condensate and fryer exhaust, with the latter upgraded to steam using an electrically driven mechanical vapour recompression (MVR) system. 

ARENA said that together, the systems are expected to reduce the site’s natural gas boiler load by 22 per cent and cut annual emissions.

Sugar Australia has been awarded $4.1 million through the National Industrial Transformation (NIT) Program for a project at its Yarraville refinery. 

According to the agency, the company plans to replace natural gas evaporators with an electrically driven MVR system to lower emissions and demonstrate the readiness of the technology for large-scale industrial heat applications.

Blackmores will receive $723,900 under the NIT Program to upgrade its Braeside, Victoria, facility. The company intends to replace a natural gas boiler with a high-efficiency heat pump and hot water buffer tank, powered by renewable electricity and using refrigeration condensate water as a heat source. 

The project is expected to reduce the site’s gas consumption by about 25 per cent and lower emissions, while showcasing how heat pumps can integrate with process heating, HVAC and dehumidification.

ARENA said the initiatives highlight opportunities for decarbonising manufacturing operations and contribute to broader national efforts to reach 2030 and 2050 emissions reduction targets.

The $40 million NIT Program is now closed to new applications, while Round 3 of the Industrial Transformation Stream program is currently open.