PERTH (miningweekly.com) – The resources sector has welcomed a new A$1-billion federal technology fund aimed at driving investment into low emissions technology.

The Low Emissions Technology Commercialisation Fund will combine A$500-million of new capital from the Clean Energy Finance Corporation (CEFC) with A$500-million from private sector investors.

Prime Minister Scott Morrison said the fund would back Australian early stage companies to develop new technology. 

“Our plan to reach net zero by 2050 is an Australian one that’s focused on technology not taxes and this Fund backs Australian companies to find new solutions,” the Prime Minister said. 

“Australia can become a world leader in creating low emissions technology that is both affordable and scalable, helping get emissions down while creating jobs. We are backing Australian businesses by creating an environment for their successful ideas to thrive.”

Minister for Industry, Energy and Emissions Reduction Angus Taylor said the fund demonstrates the government’s commitment to achieve net-zero emissions through investments in technology.

“The fund will support Australian innovators to develop their intellectual property and grow their businesses in Australia,” Taylor said.

“It will address a gap in the Australian market, where currently small, complex, technology-focused startups can be considered to be too risky to finance.

“Together with other new initiatives, like the increased investment in establishing seven Clean Hydrogen Industrial Hubs around Australia, today’s announcement brings our commitment to more than A$21-billion of public investment in low emissions technologies by 2030.

“Our investment will leverage three to five times that amount in co-investment from the private sector and other levels of government, or between A$84-billion and A$126-billion in total investment by 2030.”

The Minerals Council of Australia (MCA) on Wednesday said that the fund was a significant new incentive to continue low emissions technology development.

“The fund will play an important role in driving the development and deployment of the technologies required to decarbonise Australia,” said MCA CEO Tania Constable.

“By addressing an investment gap facing these new technologies, the fund will allow these to be properly developed. Many of these technologies are being developed by Australia’s world leading resources sector including carbon capture, use and storage, hybrid energy systems at mines sites and creation of clean hydrogen.

“The MCA sees the focus on developing and deploying low emission technologies as the best way to meet Australia’s goal of net-zero emissions by 2050 while also encouraging new investment in the broad range of minerals and resources required to meet rising domestic and international consumer demand,” Constable added.

The Australian Petroleum Production and Exploration Association has also welcomed the new funding, with CEO Andrew McConville saying technology was already leading the charge in the oil and gas industry through the gains made in carbon capture and storage (CCS) and hydrogen, but further investment will also help create jobs and export opportunities for the Australian economy.

"This fund will help with further development of the technology we need to ensure the economy reaches its target of net zero by 2050 and it adds to the billions of dollars already invested in technology such as CCS.

"With the fund supporting further investment in technology, it will help reach the targets that have been set and agreed. For example, we have already seen gains made in gas fuel cells that by using innovative technology have now reached the stage where they can provide electricity and heating in small houses and a medium-sized office or factory.

‘’With more investment from the government to support private sector innovation, more can be done to advance CCS and hydrogen that will help deliver a lower carbon, secure energy future with no change in our lifestyle and an economy that continues to do well.

‘’Using technology such as CCS can be a real game changer and with this fund Australia can be at the forefront of this technology that will give us a cleaner energy future and ensure we can efficiently reach our net-zero emissions targets.

‘’The oil and gas industry will also create new jobs and new exports using these technologies as we make our way to net zero,” said McConville.

The government will introduce legislation to establish the fund in this term of Parliament.

The fund builds on the CEFC’s success as the world’s largest government-owned green bank. The CEFC has committed A$9.5-billion across 220 large scale projects and 23 700 smaller-scale transactions, driving A$33-billion in new investments across the economy.