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- Prime Minister Scott Morrison has announced another energy investment package — this time worth $1.9 billion
- Under the plan, Australia’s key energy agencies would be allowed to invest in low emission projects
- Currently, the Australian Renewable Energy Agency (ARENA) can only invest in renewable energy
- The definition for ‘low emission’ hasn’t been defined, but it will cover technologies such as green-steel production and soil‑carbon sequestration
- The energy package also includes a new $94.5 million fund to reduce emissions in the transport, agriculture and manufacturing sectors
- Additionally, $67 million will be invested in building new remote microgrids in regional communities
- A number of ASX listed businesses look set to benefit from the changes
The Prime Minister has announced another energy package, this time aimed at broadening the investment scope for Australia’s energy agencies.
Scott Morrison announced $1.9 billion will be spent on the energy plan, which pushes the focus from renewable energy to low-emission technology.
The wider scope
While the package contained a number of measures, the most significant announcement was for a planned broadening of the investment scope allowed for Australian energy agencies.
Currently, the Australian Renewable Energy Agency (ARENA) can only invest in renewable energy projects, while the Clean Energy Finance Corporation (CERF) can only invest in project’s which produce half of the average grid’s emissions.
But under the changes announced today, which the PM plans to introduce via legislation, both agencies would be able to invest in all manner of low emission projects.
No definition has been given just yet as to what qualifies as low emission, but the Prime Minister did say CERF and ARENA would be able to finance projects like soil‑carbon sequestration, carbon capture and storage, and production of green-steel.
“Solar panels and wind farms are now clearly commercially viable and have graduated from the need for government subsidies and the market has stepped up to invest,”
Prime Minister Scott Morrison
“The Government will now focus its efforts on the next challenge: unlocking new technologies across the economy to help drive down costs, create jobs, improve reliability and reduce emissions,” he added.
Additionally, the Emissions Reduction Fund (ERF) has also been changed — with over $24 million to be spent speeding up the development of new ERF methods from over 24 months to around 12 months.
The investments
Alongside the changes to CERF, ARENA and ERF — the Government also announced a new $94.5 million Technology Co-Investment Fund.
The fund aims to encourage businesses in the agriculture, manufacturing, industrial and transport sectors to adopt technologies that reduce emissions and dually boost productivity.
An additional $74.5 million will be spent on a Future Fuels Fund, which supports businesses and regional communities who want to invest in hydrogen, electric, and bio-fuelled vehicles.
Regional communities will also be boosted with a $67 million investment in building new remote microgrids.
Prime Minister Scott Morrison said all of today’s announcements would bring new technologies into play, and also boost jobs.
“This will not only cut emissions but deliver the reliable energy Australia needs while driving down prices for homes and businesses,” he said.
A number of ASX-listed business look set to benefit from the changes and additional funding, such as Infigen Energy (IFN), Genex Power (GNX) and AGL Energy (AGL).
Meantime, the Morrison Government also announced similar investments in LNG and fuel storage earlier this week.
