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Home News

Federal Government invests in LNG and mining

by Imogen Hartmann
March 16, 2020
in Gas, News, Projects
Reading Time: 4 mins read
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The Federal Government is investing $40 million for the establishment of the Future Energy Exports (FEnEx) CRC and $29.5 million for the CRC for Transformations in Mining Economies (CRC TiME).

Minister for Industry, Science and Technology, Karen Andrews, said the FEnEx CRC would help Australia maintain its position as a leading global energy exporter.

“The world’s demand for energy is insatiable and Australia is already dominant, with current energy exports worth nearly $90 billion,” Ms Andrews said.

“The FEnEx CRC will further strengthen our export industry by developing technologies to improve the efficiency of existing LNG processes and the development of new exports like hydrogen.

“Importantly, the FEnEx CRC will tap into international interest in lowering the cost of energy production, while at the same time reducing the carbon footprint of the LNG industry.

“This CRC’s research program promises to place Australia’s LNG sector well ahead of the curve by anticipating future changes in our energy mix, improving the competitiveness, productivity and sustainability of Australian industries.”

Ms Andrews said the CRC TiME would help keep jobs in regional communities, building on the strength of the resources and energy sectors. 

“Australia’s world-class mining expertise is undeniable, but being a global resources powerhouse means ensuring a sustainable future for our mining towns in rural and regional Australia,” Ms Andrews said.

Minister for Resources, Northern Australia and Water, Keith Pitt, said, “The resources and energy sector is building new infrastructure across regional Australia and developing highly skilled and highly committed local workforces.

“This new CRC will provide the tools for towns and regions to navigate opportunities to create new jobs and development that keep communities strong.

“The Government and the resources industry recognise more needs to be done to diversify the economy of some local communities which are highly dependent on individual mining projects. The work of CRC TiME will help mining communities broaden their local economies so they can continue to grow and stay strong.”

At least $16 million of the funding will be allocated to the planned world-first microscale LNG plant that will form part of the LNG Futures Facility in Kwinana, Western Australia.

Western Australian Premier, Mark McGowan, said, “The Commonwealth contribution is a welcome boost to the LNG Futures Facility which is set to turn Western Australia into a global leader in developing and testing new LNG technologies and processes.

“This major investment by the Federal and State governments’ further positions Western Australia as a global LNG hub, and has the potential to create up to 1,400 jobs.”

The Western Australian Government is also providing $10 million over 10 years and granting suitable land in the Kwinana industrial precinct to support the development of the LNG Futures Facility. The University of Western Australia has committed up to $15 million for the Facility.

The Facility will position WA as a global leader in the development and testing of new technologies and processes, with the potential to create up to 1400 jobs.

The industry-led initiative is a priority of the LNG Jobs Taskforce, a collaboration between the State Government and LNG industry to maximise local jobs in WA’s LNG industry.

Chaired by the Premier, the taskforce includes Chevron, Woodside, Shell, Santos and Inpex, as well as representatives from APPEA and UnionsWA.

The LNG Futures Facility will enable LNG companies, contractors, service providers and small to medium businesses to test and refine new processes in a live plant environment, and is expected to have a capacity of ten tonnes of LNG a day.

“Through the LNG Jobs Taskforce, the State Government is working in collaboration with industry to maximise local jobs in WA’s LNG industry,” Mr McGowan said.

“The Facility will future-proof WA’s LNG industry and shows the world that Western Australia has the local talent and expertise to help shape the LNG jobs and operations of the future.

“As well as helping to sustain Western Australia’s position as a leading global LNG exporter, the facility will also position us to become the leading global hydrogen exporter, as markets and technology change over the coming decade.”

The FEnEx CRC has generated a further $122 million in cash and in-kind contributions from industry and researchers.

Since 2013, the Federal Government has committed $1.1 billion to support the establishment of 30 CRCs, with industry and research partners contributing $3.4 billion in cash and in-kind contributions.

The CRC Program provides competitive and merit-based grant funding to support industry-led collaborative research partnerships. The grant is complemented by cash and in-kind support from industry and research partners.

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