Clean Technology Investment Program (CTIP) update

06 Sep 2012Archived News Climate Change Matters

New grants announced last week.  But will the pool shrink?  Act now!

The Clean Technology Investment Program (CTIP) launched in February of this year as part of the federal government's Clean Energy Future plan.  So far two rounds of grant recipients have been announced and Round 3 is about to close. With recent forecasts suggesting that government revenues may fall due to lower expected tax returns, there may be flow on effects to a range of funding programs, making it more important than ever to seize this opportunity now.

 

 

Under the Clean Technology Investment Program there is $1 billion (including the Food and Foundries Investment program) to be awarded for projects which reduce carbon emissions most cost effectively.  Ausindustry states that grants will be given to energy efficient capital equipment and low emission technologies, processes and products.  Your business should investigate suitable projects and apply for funding.  Furthermore, energy savings and carbon emissions reduction projects can be 1/3 to 1/2 funded by a CTIP grant, with complementary incentives from State programs, and top-up financing from Low Carbon Australia, making such projects even more attractive.

 Projects from CTIP Round 1 included gas fired cogeneration, voltage optimisers and regulators, equipment upgrades and solar power systems, and grants ranged in size from $40 000 to just under $5 million. 

Grant recipients from Round 2 announced just last week were dominated by $9.1m awarded to Mackay Sugar under the Food and Foundries program.  Mackay Sugar is Australia’s second largest sugar mill which, as part of a bigger $27 million upgrade, will, to quote the ausindustry website: “undertake a major efficiency upgrade of a boiler at the Marian Mill and construct bagasse handling facilities which will improve the supply, transport and storage of surplus bagasse for non-crush consumption at the cogeneration site at Racecourse Mill.  Mackay Sugar will also continue its $120 million cogeneration project which involves the construction of a new high pressure and high efficiency boiler and 38MW Steam Turbine Generator at Racecourse Mill. The plant will supply steam and electricity to Racecourse Mill and the collocated sugar refinery to significantly improve the energy efficiency of their sugar production.”  This project also enables Mackay Sugar to reduce their carbon emissions liability across three sites by 16.5% and forms a part of a broader program intended to reduce carbon emissions by 71%, which will completely remove the company’s carbon liability.  

Four other projects were announced as grant recipients in Round 2.  Over $1 million is to be awarded to AB Richards “Richgro” in WA for 1-2 MW anaerobic digestion waste-to-energy plant, generating electricity to meet 100% of Richgro's onsite requirement.  Like the Mackay Sugar project, the excess electricity is planned to be sold into the grid. Richgro further intends to use a by-product which will work towards a zero-waste system. The project should reduce Richgro’s carbon emissions from electricity consumption by 100%. Three smaller grants in WA, ranging from $119k to $372k, are focussed on upgrade projects:  New digital print press (31.3% emissions reduction), conversion of two electrically heated components in a processing line to a gas-fired thermal oil system (39.9% emissions reduction), and the insulation of 59 stainless steel wine tanks and replacement of two refrigeration units with hydrocarbon refrigerants (51.1% emissions reduction).

It is clear that the funding is intended to support step changes in energy productivity, dramatic reductions in carbon liability and the largest grants have supported renewable energy projects. 

Now more than ever is the time to take a closer look at your business’ potential projects and act on this opportunity.

NOTE:  New to the CTIP program is a category under which manufacturing sites which carry a direct carbon liability (emitting 25 000 tonnes CO2-e but less than 100 000 tonnes in covered emissions, which are a subset of direct scope 1 emissions), are able to apply for government funding on a 1:1 basis.  This was announced at the end of July.  Where applications are made for this increased level of support, you must ensure that the project under consideration is limited to the site defined as a facility within NGER’s reporting for that business.  “Covered emissions” must be determined using the Carbon Pricing Mechanism Threshold Estimator within which the values for scope 1 emissions from your business’s most recent NGER report, should be determined.  Applications which have already been lodged but which may meet the requirements of this new category, may be able to access this new grant funding arrangement,  In such cases, Ausindustry should be contacted. 

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