The Albanese Government has announced $192 million in funding to help Australian manufacturers cut gas use, lower energy costs and reduce emissions, with new support directed toward leading companies and regional industries.
According to a joint media release from Minister for Climate Change and Energy Chris Bowen and Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King, $12 million will be allocated to three major manufacturers – McCain Foods, Sugar Australia and Blackmores – through the Australian Renewable Energy Agency (ARENA).
McCain Foods will use the funding to install advanced heat recovery technology at its Ballarat potato processing facility, expected to reduce steam and heat requirements by more than 20 per cent.
The government noted that Sugar Australia will replace gas-fired evaporators with an electric system at its Yarraville refinery, while Blackmores will install a high-efficiency heat pump at its Braeside factory to cut gas use by up to 25 per cent.
An additional $180 million in funding is now open under ARENA’s Industrial Transformation Stream to assist more regional manufacturers in modernising their operations, cutting gas reliance and remaining competitive in a net zero economy.
Minister Bowen said the new funding demonstrates how cleaner technology can help Australian industry lower both costs and emissions. “Australian businesses are proving that smart investments in clean technology mean lower bills and lower emissions,” Bowen said.
“These upgrades will help McCain, Sugar Australia and Blackmores use less gas, save money and cut pollution – all while staying competitive in a net zero world.”
Minister King said the announcement builds on McCain Foods’ ongoing commitment to sustainability and innovation in the Ballarat region.
“McCain aren’t just a major employer in the Ballarat region, they’re also a climate leader,” King said. “Over the last five years, they’ve installed an incredible array of 17,000 solar panels and invested in an anaerobic digester that generates energy from food waste. That has helped them reduce the energy they draw from the grid by 39%, and their reliance on natural gas by 16%.”
“With the support of the Albanese Labor Government, McCain have done it again, investing in a heat recovery system that will reduce their steam and heat requirements. This investment will help them go even further in reducing their costs and climate impact,” she added.
The government said industrial processes account for 44 per cent of Australia’s emissions, but recent initiatives under ARENA, the Safeguard Transformation Stream and other Future Made in Australia programs are already helping to drive reductions. Industry emissions reportedly fell 4.7 per cent in the year to March 2025.
More information on the Industrial Transformation Stream and funding applications is available on ARENA’s website.
