Decarbonising industry: it’s all about the process

A recent funding round of $13 million under ARENA’s National Industrial Transformation (NIT) Program is supporting five operating industrial facilities to reduce scope 1 and scope 2 emissions through strategic retrofits and upgrades.

The projects will also demonstrate the feasibility and commercial viability of new technologies including industrial heat pumps and heat recovery from refrigeration in demanding industrial applications.

According to ARENA CEO, Darren Miller, decarbonising industry is one of the defining challenges of Australia’s energy transition.

ARENA’s targeted funding aims to help de-risk projects, unlock private investment, and accelerate deployment of low-carbon and energy-efficient technologies.

“Australia cannot reach net zero without transforming how we produce the materials, energy and goods that underpin our economy,” says Miller. 

“These projects show that industrial decarbonisation is not a future aspiration but is happening now, with practical solutions that cut emissions, strengthen competitiveness and build the foundations for new low-carbon industries.”

The new projects include up to $1.94 million for Opella Healthcare to eliminate natural gas use at its Queensland manufacturing site. Aluminium manufacturer Capral is receiving up to $3.45 million to replace a 40-year-old gas-fired log furnace with a fully electric furnace system at its Bremer Park aluminium extrusion facility in Queensland.

Supporting the emerging green steel supply chain, BioCarbon is receiving up to $4.80 million to construct a commercial-scale facility producing biochar pellets that can replace coal-derived coke in electric arc furnace steelmaking.

Of particular interest for HVAC&R is the project being funded for 4 Pines Brewing Co in Brookvale, New South Wales. Up to $1.77 from ARENA is being used to fund a $3.85 million project that will fully electrify the brewing process, integrate heat recovery from refrigeration systems and deploy low-GWP refrigerants.

With project partners Flexigen and Asahi Holdings, the goal is to eliminate all fossil fuel use and achieve a true net zero brewing process without the use of offsets.

Existing gas-fired boilers will be replaced with high-temperature heat pumps that utilise waste heat from refrigeration to enhance efficiency. Refrigeration systems are also being upgraded or replaced, with gas-fired chillers eliminated and electric chillers retrofitted. An electric boiler will be installed for steam-dependent processes.

Another project which will deliver significant knowledge gains for HVAC&R systems within industrial sectors is Alsco Uniform’s South Coast Flagship Site for Innovation and Low Carbon Demonstration at Port Kembla.

ARENA is contributing up to $1.04 million towards the $2.16 million project, which will deliver an innovative facility showcasing clean technologies for laundry sorting and washing, including heat pumps, heat recovery systems, automation, robotics, sensors, energy demand management, solar integration, thermal energy storage and water efficiency technologies.

The project delivery team includes Rheem Australia, Thielen Automation, Northmore Gordon, DETA Consulting, SEPAK Industries, Energy Specialities and Armstrong Flow Control.

But wait, there’s more (funding)

The NIT Program has now been closed, however, ARENA’s support for transforming the industrial sector continues, with funding available for existing industrial facilities in regional areas.

Pitches are being sought from engineers, consultants, asset owners and businesses that meet the criteria for funding of $500,000 or more through Round 3 of ARENA’s Industrial Transformation Stream (ITS). Applicants will be expected to invest an amount equivalent of greater than the grant amount of their own working capital or finance towards project costs.

The priority is for projects that have ideas which are innovative and scalable. That could mean targeting an Australian first with a new technology; equipment retrofits to switch high-temperature processes from gas, coal or diesel to electric and renewables; or reconfiguring processes to optimise energy efficiency.

Projects can be pitched at any stage, from feasibility study proposals and front-end engineering and design, through to trials, demonstrations and deployment.

Two-stage projects that comprise an initial feasibility study and a second stage of deployment will also be considered.

For more information on round 3 of the ITS including eligibility and how to apply, see here. 

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