Election 2022: Angus Taylor promises funding boost for Nowra plant

Clean energy projects on the South Coast have received a boost as the Liberal Party unveils its cash splash on a Nowra-based cogeneration project.

Clean energy projects in the Shoalhaven have received a boost as the Liberal Party unveils its cash splash on a Nowra-based cogeneration project, despite dissent within the coalition over its net-zero target.

Minister for Energy and Emissions Reduction Angus Taylor announced on Thursday that the Federal Government would spend $85 million on the new plant at the Manildra manufacturing centre, near Bomaderry.

The investment will bring the total funding for the project to $190 million, Mr Taylor said, adding that the funds were a budgetary commitment, and not an election promise.

“The announcement today is a significant one,” Mr Taylor said.

“It is focused on establishing a cogeneration plant, replacing coal as a source of heat with gas, which will allow a 45 per cent emissions reduction and a 300,000 tonne per year reduction in emissions.”

According to Manildra, the project seeks to future-proof the starch processing plants manufacturing capabilities, while fostering hundreds of direct jobs.

“Manildra Group is constructing a 60MW gas-fired cogeneration plant on site. The state-of-the-art gas turbines will burn natural gas to drive a generator to produce electricity,” according to Manildra.

“The waste heat from the exhaust gas from each turbine is used to create steam in a heat recovery steam boiler.

“This cogeneration technology will produce up to 100 per cent of the electricity required at Shoalhaven Starches, and additionally employ approximately 170 construction jobs for the projects.”

The project was touted by Liberal candidate for Gilmore, Andrew Constance, as an alternative to plans floated by the Greens of introducing a tax on carbon.

“This is about technology, not taxes,” he said.

“I know the business community is working around the clock to do everything they can to get emissions to net zero as quickly as possible.”

Mr Constance said emissions targets were based on “pathways” that allow employees in the non-renewable industry to transition into new positions.

“We’ve got to do everything to safeguard our planet,” he said.

“This is the best way to go: it’s practical, it’s real, it supports jobs.”

Construction of the plant is due to begin later this year before wrapping up in early 2023.

Further up the coast, Mr Taylor also unveiled plans to spend $900,000 on a feasibility study for clean steel at the BlueScope plant in the Illawarra.

“We know steel is one of the most difficult industrial processes to decarbonise in the world,” he said.

“This announcement is about doing the work to work through how to bring down those emissions in the longer term.”

Mr Taylor said BlueScope Steel had already instituted programs to lower emission at its Port Kembla factory, and that the investment would seek to safeguard production.

“What we want to see is a pathway to further emissions reduction while still maintaining efficient, effective production of steel,” he said.

The announcements comes as the Morrison Government faces continued pressure surround its commitment to a 2050 net-zero target after the former leader of the Nationals, Michael McCormack said some industries could be excluded from the target.

That statement came as the Liberal Party faces challenges in so-called teal seats where independent candidates are targeting moderate Liberal members.