Technology needed to reduce carbon emissions in hard to abate sectors
The Australian Government is supporting efforts to transition to net-zero emissions through grants aimed at reducing energy costs and emissions in the industrial sector.
In September, the Australian Renewable Energy Agency (ARENA) announced a $43 million Industrial Energy Transformation Studies Program to support feasibility studies and engineering studies to establish the business case for replicable projects that demonstrate energy efficiency and renewable energy technology solutions for industry.
As part of the program, ARENA is offering up to $500,000 for feasibility studies and up to $2 million for engineering studies.
One of the largest carbon emitters is the iron and steel manufacturing industries.
A Wood McKenzie report found that steel manufacturers would need to produce 2.2 billion tonnes of steel by 2050 to meet global demand.
However, the report said that the manufacture of steel emits a combined 3.4 billion tonnes of carbon annually, 7 per cent of total global emissions.
“The steel industry, therefore, faces a huge challenge in achieving net zero emissions by 2050,” the report said.
“Under our 1.5 degrees Accelerated Energy Transformation scenario, which is broadly aligned with the most ambitious goal of the Paris Climate Agreement, the decarbonisation of the iron and steel sectors will require about US$1.4 trillion of investment.
“But the scale of the challenge offers enormous opportunities, too.
“Decarbonising steel production will require a revolution at every stage of the industrial value chain, from mining to consumption.”
ARENA chief executive officer Darren Miller said helping large energy users to reduce emissions would help Australia meet its emissions reduction goals.
“As Australian industries look to decarbonise, we must now find smart, replicable solutions to help cut energy costs and reduce emissions in hard to abate sectors,” Mr Miller said.
“Through this program, ARENA is looking to support solutions that can provide blueprints for business across energy intensive industrial sectors.”
Minister for Climate Change and Energy Chris Bowen said the program would help to identify opportunities to reduce energy costs in industries and lower emissions in hard to abate sectors.
“The ARENA grants will help industrial emitters to find innovative ways to cut their energy demand, adopt renewable energy, save on their energy bills, and help Australia meet its emissions reduction targets,” Minister Bowen said.
Organisations in mining, manufacturing, gas supply, agriculture, water supply, waste services and data centre sectors can apply for the ARENA grants.