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Home News

ARENA injects $12m into low-emission manufacturing

by Tom Parker
September 30, 2025
in News, Renewable Energy, Smart Energy
Reading Time: 2 mins read
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manufacturing low-emission

McCain Foods in Ballarat. Image: ARENA

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Australia’s manufacturing industry has received a green shot in the arm after gaining a $12 million boost to explore low-emission manufacturing methods.

The Australian Renewable Energy Agency (ARENA) is getting behind the likes of McCain Foods, Sugar Australia and Blackmores by funding technologies that reduce the reliance on natural gas.

McCain Foods will use $7.38 million in funding from ARENA’s Industrial Transformation Stream (ITS) to integrate two interconnected heat recovery systems at its Ballarat processing site.

The first system will recover high-temperature heat from condensate to reduce boiler demand, while the second captures lower temperature fryer exhaust heat to produce hot water. An electrically driven mechanical vapour recompression (MVR) system then upgrades this to steam.

This is expected to reduce the site’s natural gas boiler load by 22 per cent, limiting the carbon footprint.

Sugar Australia will use $4.1 million in funding through ARENA’s National Industrial Transformation (NIT) program to slash emissions at its Yarraville sugar refinery. This will also see the installation of an electrically driven MVR system to replace natural gas evaporators.

“Both projects will demonstrate the commercial readiness of MVR for industrial heat applications, providing proof that innovations such as hot water to steam and increased efficiencies for water evaporation can be successfully retrofitted to commercial operations,” ARENA said.

“If the projects are successful, they will serve as a blueprint for how Australian industries can utilise the technology, derisk future investment and decarbonise key processes.”

Blackmores will look to cut natural gas consumption by about 25 per cent at its Braeside facility by installing a high-efficiency heat pump and hot water buffer tank. This is supported by $723,900 through ARENA’s NIT program.

“Achieving Australia’s emissions reduction goals requires that our energy-intensive industries and manufacturers develop and execute clear strategies to integrate renewable energy into their operations,” ARENA chief executive officer Darren Miller said.

“These grants are designed for forward-thinking businesses ready to pioneer and incorporate new applications of renewable energy technologies.”

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