Funding for Cement, Lime, Alumina and Aluminium Sectors to reduce emissions

The Powering the Regions Fund – Critical Inputs to Clean Energy Industries – CLAAS grant opportunity will provide up to $100 million to projects that help these sectors to reduce emissions and support Australia’s emissions reduction targets.

This grant opportunity was announced in alignment with the Powering the Regions Fund objective of supporting the development of new clean energy industries.

Funding of $200 million has been allocated to the Critical Inputs to Clean Energy Industries – Cement, Lime Alumina and Aluminium Sectors to help these sectors maintain a presence in Australia and continue to deliver critical inputs for the infrastructure and supply chains needed for Australia to be a renewable energy powerhouse.

The objectives of this grant opportunity are to:

• support and sustain sovereign manufacturing capability during the net zero transformation
• ensure the continued availability of locally produced cement, lime, alumina and aluminium, which are critical inputs to the clean energy supply chain
• support the development of low emissions cement, lime, alumina and aluminium sectors consistent with the Australian Government’s climate commitments
• advance the development of new clean energy industries, aligned with Australia’s ambition to become a renewable energy powerhouse
• reduce the risk of carbon leakage, which occurs when a business responds to emissions reduction policies by moving emissions-intensive production to a country with less stringent policies.
• encourage collaboration on decarbonisation planning within each hard-to-abate sector.

The intended outcomes of the grant opportunity are:

• continued domestic production of cement, lime, alumina and aluminium, until 2030 and beyond
• increased deployment and commercialisation of low emissions technologies
• increased ability for the sectors to contribute to decarbonisation and transformation to net zero, and pursue new clean energy and value-adding opportunities, including export opportunities
• assisting sectors to have a viable pathway to net zero under existing and emerging technology.