State commits $10 million to help food and beverage industry get off gas

One of the most fossil fuel-dependent sectors of industry is the focus of a new grant funding scheme launched as part of the Victorian government’s plan to wean households and businesses in the state off gas.

The Allan Labor government said this week it will offer up to $10 million worth of grants to the food and beverage processing and manufacturing sector to upgrade to efficient electric alternatives.

The new support measures were unveiled in a third round of the state Energy Innovation Fund alongside $5 million in free training initiatives for plumbers, electricians, and construction workers to be able to install and maintain electric appliances.

“Industrial electrification is a critical step towards cutting down energy bills for Victorian manufacturing and helping to get the next generation of renewable energy projects off the ground,” said Lily D’Ambrosio, Victoria’s minister for energy and resources.

Victoria is Australia’s largest food and beverage manufacturer, a sector valued at $45 billion employing over 76,000 people across the state.

To support this important state sector lower their energy bills, grants of up to $2 million per business are up for grabs to facilitate the transition from gas equipment and machinery to energy efficient electric alternatives such as electric heat pumps.

The Victorian government also hopes that these grants will encourage the innovation of new technologies to meet the needs of the sector as a whole.

And while the grants are being billed as an opportunity for businesses to lower their energy bills, the state government acknowledged that it is also an attempt to “reduce the pressure on Victoria’s dwindling gas supply”.

This is supposed to in turn lower the cost of gas for Victorian manufacturers that are unable to transition away from gas and reserve supplies of gas for the state’s industry.

On top of the upgrade grants, the Victorian government is also investing $5 million in free training initiatives for plumbers, electricians, and construction workers so that they are able to take advantage of the opportunities inherent in a wholesale transition to electric appliances.

Training will include courses for plumbers to learn to install and maintain heat pumps, training for the construction industry in building 7-star all-electric homes, and specific mentoring for electricians in installing solar.