The Australian Renewable Energy Agency (ARENA) has granted over $12 million to McCain Foods, Sugar Australia, and Blackmores, to trial and demonstrate low emission technologies for process heat, reducing the reliance on natural gas.
The second round of ARENA’s Powering the Regions Fund: Industrial Transformation Stream (ITS) program, opened in March, with $70 million in additional funding from an initial $400 million allocated in 2023. The organisation’s $40 million National Industrial Transformation (NIT) Program integrates with ITS to offer more options for industry applications.
Frozen food manufacturer, McCain Foods, will receive $7.38 million from the ITS program to implement two interconnected heat recovery systems at its Ballarat potato processing site.
The first system will recover high-temperature heat from condensate to decrease boiler demand, while the second captures lower temperature fryer exhaust heat to produce hot water, which is then upgraded to steam using an electrically driven mechanical vapour recompression (MVR) system. Collectively, these systems are expected to lower the site’s natural gas boiler load by 22 per cent and reduce annual emissions.
Sugar Australia’s project, backed by $4.1 million in funding through NIT, aims to significantly reduce emissions at its Yarraville sugar refinery by replacing traditional natural gas evaporators with an electrically driven MVR system.
Both projects will demonstrate the commercial readiness of MVR for industrial heat applications, providing proof that innovations such as hot water to steam and increased efficiencies for water evaporation can be successfully retrofitted to commercial operations. If the projects are successful, they will serve as a blueprint for how Australian industries can utilise the technology, derisk future investment and decarbonise key processes.
Health company, Blackmores, will also receive $723,900 through the NIT program to reduce emissions and energy consumption at its manufacturing facility in Braeside, Victoria, by replacing a natural gas boiler with a high-efficiency heat pump and a hot water buffer tank. The new system will use renewable electricity and the site’s refrigeration condensate water as a heat source, producing hot water for various manufacturing processes.
The projects build on ARENA’s work in industrial decarbonisation, supporting Australia’s ambition to become a renewable energy superpower and meet 2030 and 2050 net zero targets.
ARENA CEO, Darren Miller, said support from the organisation through programs like the Industrial Transformation Stream remains vital in increasing the adoption of clean technologies in manufacturing.
“Achieving Australia’s emissions reduction goals requires that our energy-intensive industries and manufacturers develop and execute clear strategies to integrate renewable energy into their operations,” said Miller.
“These grants are designed for forward-thinking businesses ready to pioneer and incorporate new applications of renewable energy technologies. By assisting in the adoption of clean technologies in heat processes in Australia’s food, beverage and pharmaceutical sectors, these projects will provide a blueprint for similar businesses to replicate and scale up these solutions nationwide.”
The third round of the ITS program is now open. For further information and to apply, visit arena.gov.au.
