In the face of efforts by Australia’s conservative Liberal-National government to do away with it the country’s ‘green bank’ has made a major investment in new biogas infrastructure that it hopes will cut energy costs for agribusinesses and manufacturers.
The Clean Energy Finance Corporation (CEFC) has revealed its made new investments exceeding $50 million.
The new outlays include a $20 million deal to invest in new biogas projects with Quantum Power, which will contribute a similar amount.
Under the deal, Quantum will supply food processors and other agribusinesses in all five mainland states with energy generated from organic waste, reducing the need for grid power and cutting costs.
CEFC chief executive Oliver Yates said food producers and manufacturers would benefit from greater control over their energy costs and improve their competitiveness in a global market.
Biogas allows these businesses to generate energy from onsite waste streams.
“The food processing sector has faced rising energy costs and getting control of those costs helps with their competitiveness,” he said.
Mr Yates said biogas production offered regional Australian agribusinesses and manufacturers a way to increase their control over a significant input cost thereby boosting their energy productivity in the face of rising electricity costs that have reduced returns.
“Quantum Power will build and manage the onsite facilities, leaving businesses free to keep focused on their core operations.”
Fairfax Media reports the deals, along with others expected to be unveiled over the next week or so, will bring the fund’s total investments to about $590 million compared with $536 million towards the end of 2013.
The Liberal-National coalition government has dubbed the CEFC a “giant green hedge fund” that provides unnecessary competition for the private sector.
The $10 billion fund was set up by the previous Labor government as part of its clean energy package and moves so far to do away with it have been thwarted by the Labor opposition and the Australian Greens Party.
Supporters note that private banks and other firms have spent three dollars for each dollar invested by the fund, for a total of more than $2.2 billion since its inception last July.
The investments, which include about half going to energy efficiency projects, have saved almost four million tonnes of carbon emissions at a negative-cost of $2.40 a tonne, the CEFC estimates.
Fairfax Media reports that as of February 20, the CEFC was in active discussions with 34 project proponents seeking finance for more than $1.2 billion.
All up, the projects would be worth more than $3 billion, the fund said.
The CEFC is also considering proposals from more than 150 proponents seeking CEFC finance for more than $4.3 billion, with total project costs exceeding $11.8 billion.
Under current legislation, the fund is required to invest $2 billion a year for five years.