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Biohub pioneer Utilitas Group has been awarded a $515,597 government grant to help fund an advanced biorefinery laboratory and biohub design project in Morwell, Victoria.

The company's bioHubs divert organic waste from landfill in order to recover valuable resources. The first identified bioHub is a 1.06 MWe plant located near Morwell to bio-process dairy and food processing waste, and a second 1.67 MWe plant will be located near Warragul.

The project will establish an advanced biorefining laboratory at Morwell and progress the bioHubs through project definition, financial close and detailed design, after which the bioHubs can be constructed into operation.

Utilitas CEO Fiona Waterhouse said the grant would enable the company to work with local farmers, food, beverage and fibre producers to “unleash the power of biogas to fuel their processes, support local electricity and gas networks and energise the community”.

“This grant allows us to expand our bioengineering capacity and bioHub development activities into the Gippsland Region which will now become the base for our Victorian, South Australian and Southern NSW operations,” Waterhouse said.

“We look forward to working with the Gippsland community to leverage the existing skills base in energy and agriculture into bioenergy and biomanufacturing to secure old jobs and create new ones.

“The Latrobe Valley Authority have been very helpful in connecting us into the local community and we are already starting to collaborate with local industry.”

The grant is part of a $20m government funding to create jobs in Victoria's Gippsland region, and will be shared between 19 organisations.

The Nationals member for Gippsland Darren Chester joined Prime Minister Malcolm Turnbull to announce the successful applicants and their projects.

“This $20 million investment from the Federal Government will help drive economic growth and create jobs in Latrobe City, Baw Baw and Wellington council areas as part of the Federal Government’s response to the closure of Hazelwood Power Station,” Chester said.

“The fund provides a great opportunity for the private sector to work with government on projects that will make the Latrobe Valley and Gippsland economically stronger and more vibrant.”

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