Coalition digs deeper into fossil fuels with new “growth centre”

Published by

The federal government has announced the establishment of a $15.4 million fossil fuel “growth centre”, to help prop up Australia’s oil, gas, coal and uranium sectors during what it describes as a “challenging time” for the industry.

Part of the government’s $248 million Industry Growth Centres Initiative, the Oil, Gas and Energy Resources Growth Centre was unveiled on Wednesday by federal energy minister Josh Frydenberg and minister for innovation and industry, Christopher Pyne.

The ministers said they hoped the facility – in which the Turnbull government is investing $15.4 million over four years – would help position Australia’s energy and resources sector for the next wave of investment.

It will be chaired by long-time oil and gas industry executive, Ken Fitzpatrick, with a board and management team drawn from across the oil, gas, coal seam gas, coal and uranium industries.

According to the website, the growth centre’s mission is to reduce industry costs, direct research to industry needs, improve work skills, facilitate partnerships and reduce regulatory burdens.

It will also have a particular focus on improving knowledge and techniques needed to unlock Australia’s marginal gas resources like coal-seam gas – a controversial and high-cost field of exploration and production that AGL Energy recently ruled out of its repertoire to focus, instead, on the “evolution” of the energy industry.

Pyne says the new growth centre – which will be known as National Energy Resources Australia, or NERA – will work closely with researchers from universities and the newly streamlined CSIRO, the irony of which was not lost on critics of the scheme.

“Pouring millions of dollars into research for the fossil fuel industry adds insult to injury for the CSIRO climate scientists who are set to lose their jobs under Malcolm Turnbull and his government’s watch,” said Greens energy spokesman Adam Bandt on Thursday.

“Not only is the Liberal government allowing the CSIRO to cut climate science, it’s making the scientists who don’t lose their job try to breathe life into the dying fossil fuel industries.

“(It) is pouring millions of dollars into a big hole in the ground, which is directly at odds with what the science tells us we must do,” Bandt said.

The Australian Conservation Foundation said the establishment of NERA amounted to another multi-million dollar subsidy to big polluting energy companies.

“This money would be better spent extending the funding of the Australian Climate Change Science Program which is due to expire in June this year,” said ACF climate program manager Victoria McKenzie-McHarg.

“The world has changed since the Paris agreement. This budget the government should focus on supporting the science, technology and clean energy innovation of the future, not keep subsidising pollution.”

“Australia’s energy and resources sectors make a vital contribution to the Australian economy,” said Frydenberg in a statement on Thursday. “During this challenging time, the Growth Centre will drive collaboration and innovation, and direct research to industry needs, ultimately improving productivity to ensure Australia remains globally competitive.”


Sophie Vorrath

Sophie is editor of Renew Economy and editor of its sister site, One Step Off The Grid . She is the co-host of the Solar Insiders Podcast. Sophie has been writing about clean energy for more than a decade.

Share
Published by

Recent Posts

French energy giant seeks federal green tick for wind farm and big battery in hotly contested REZ

The Australian arm of a French energy giant is seeking federal environmental approval to build…

6 October 2026

Rooftop PV system sizes are shrinking in line with battery rebates, but it’s still a bumper year for home solar

Rooftop solar uptake has ridden the wave of Cheaper Home Batteries, but new data shows…

6 October 2026

Offshore wind farm suffers its second turbine blade failure in two months

A Taiwanese offshore wind farm has experienced its second turbine blade failure in two months.

6 October 2026

Australia’s first offshore wind auction takes shape with longer contracts and special payments

Australia's first offshore wind auction will adopt features of the UK's successful program, including longer…

6 October 2026

“Every project is controversial in some form:” Ceremonial sod turn marks Marinus Link construction ramp up

Federal energy minister concedes controversy over Marinus Link project at a ceremonial sod-turning ceremony that…

6 October 2026

Giga-scale Pilbara wind and solar project seeks to pass final planning hurdle

First Nations group behind several giga-scale renewables projects launches DA for its latest huge wind…

6 October 2026