With food and beverage manufacturing the third largest energy user of manufacturing industries in Australia, the Australian Food and Grocery Council says funding from the Victorian government to help companies transition to renewable energy is a positive move.
In Victoria, food and beverage contributes more than $47 billion and supports over 76,000 jobs in the state.
Victorian energy minister, Lily D’Ambrosio, and industry and advanced manufacturing minister, Colin Brooks, today announced $10 million in grants for the food and beverage processing and manufacturing sector to upgrade to efficient electric alternatives as part of the Round 3 of the Energy Innovation Fund.
D’Ambrosio said, “Industrial electrification was a critical step towards cutting down energy bills for Victorian manufacturing and helping to get the next generation of renewable energy projects off the ground.”
Grants of up to $2 million per business will go towards helping those that can swap their gas equipment and machinery to efficient electric alternatives, lowering their operating costs and make them more competitive and future ready, the government said.
Brooks added, “We’re helping manufacturers improve their processes to be more energy efficient, reducing their running costs and future proofing their business.”
Around 40 per cent of energy used by the sector is gas, but the AFGC said price volatility and supply issues in the gas market are threatening the ability of manufacturers to power their operations, putting domestic food production at risk.
AFGC CEO Colm Maguire said partnering with government through programs such as grants and incentives for energy transitioning is key to the sector’s success.
“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,” Maguire said.
But further work was needed to ensure renewable alternatives to gas were viable and commercially available at scale, particularly for high-heat industrial processes which are not easily electrified, the AFGC said.
