$10m worth of electrification grants for food and beverage industry in Vic
Victoria is Australia’s largest food and beverage manufacturer, with the industry valued at $45 billion and employing more than 76,000 Victorians — but it’s also one of the most energy-intensive sectors in the state.
The Victorian Government has now announced $10 million in grants for the food and beverage processing and manufacturing sector to upgrade to efficient electric alternatives as part of Round 3 of the Energy Innovation Fund.
The government is making grants of up to $2 million per business to help with the transition away from gas equipment and machinery to efficient electric alternatives. The grants will also encourage innovation in technology, with the funds to help identify new and cutting-edge technologies to meet the needs of the sector.
The Australian Food and Grocery Council has welcomed the funding to support the industry.
“This funding is a step in the right direction for manufacturers already dealing with high energy prices and uncertainty around future supply. We welcome the Victorian Government’s commitment and look forward to working together on more comprehensive solutions that keep food production strong and sustainable,” said AFGC CEO Colm Maguire.
The AFGC said further work is also needed to ensure renewable alternatives to gas are viable and commercially available at scale, particularly for high-heat industrial processes which are not easily electrified.
Electrification in action
MainStream Aquaculture conducted a feasibility study on replacing their gas boilers with electric heat pumps as part of the VEU Large Energy User Electrification Support Program.
It showed that MainStream Aquaculture could replace two legacy 650 kw gas boilers with a 550 kW water sourced heat pump using readily available geothermal water at its Werribee site, reducing the site’s annual gas usage by 70%, saving them approximately $113,000 a year with a five-year payback period.
For more information on the Energy Innovation Fund, visit: energy.vic.gov.au/grants/energy-innovation-fund.
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