Clean Technology Investment Program

Description:

The Clean Technology Investment Program is an $800 million competitive, merit-based grants program to support Australian manufacturers to maintain competitiveness in a carbon constrained economy. This program will provide grants for investments in energy efficient capital equipment and low pollution technologies, processes and products.

This program is delivered by AusIndustry and will provide grant funding over a seven year period from 2011-12 to 2017-18.

Food and Foundries:

The Clean Technology Food and Foundries Investment Program covers specifically the food and foundries sectors. Customers eligible for funding under the Clean Technology Food and Foundries Investment Program cannot apply for funding under the Clean Technology Investment Program.

The two programs are very similar with identical rules for grant amounts, eligible projects, merit criteria and application process.

The key difference is that there is no eligibility energy consumption threshold (eligibility criteria number two) for the Clean Technology Food and Foundries Program. This difference recognises that most businesses in these sectors are very high energy users. A grant pool of $200m is available for this program.

Size of Grant:

There are four levels of grant amounts for manufacturers:

Applicant to grant funding ratio	Annual turnover of applicant	Grant amount
Up to 1:1	< $100 million	$25,000 - <$500,000
Up to 2:1	≥ $100 million	$25,000 - <$500,000
	N/A	$500,000 – <$10 million
3:1*	N/A	≥ $10 million

 

Company Eligibility:

To be eligible to apply for funding under the Program, an applicant must:

1. Be a non-tax exempt corporation that is incorporated in Australia under a law of the Commonwealth or of a State or Territory and is undertaking manufacturing activities in Australia (eg an incorporated business or cooperative);
2. Have met one or more of the prescribed energy or emissions thresholds in the 12 month period before submitting an application:
   1. used at least 300 megawatt hours of electricity; or
   2. used at least 5 terajoules of natural gas; or
   3. used a mix of fuels and/or electricity that results in the emissions of at least 0.27 kilotonnes of carbon dioxide equivalent

OR be directly liable under the carbon pricings mechanisms.

1. Be able to fund the costs of the project that will not be covered by the grant;
2. Have complied with their obligations under the Equal Opportunity for Women in the Workplace Act 1999.

Eligible Projects and Activities:

• The maximum project duration is two years from the project commencement date.
• Projects can include activities at multiple sites within Australia.
• Eligible activities are capital investment and associated activities that generate carbon and energy. The following table provides examples of these measures:

 

Energy efficiency or emissions reduction measure	Examples
Replacing part(s) of your existing manufacturing plant, equipment or processes in Australia.	Upgrading to high efficiency motors and lighting Replacing an existing boiler with a more efficient one
Modifying part(s) of your existing manufacturing plant, equipment or processes in Australia.	Installing variable speed drives or advanced process control systems Fitting new insulation for ovens and heaters
Changing energy source(s) for your existing plant or processes in Australia, or for new replacement plant or processes in Australia.	Switching from an electric furnace to a gas-fired furnace Installing solar panels, wind turbines or a gas-fired cogeneration system
Establishing new facilities or modifying your current facilities to enable production of new low emissions products.*	Installing new equipment to establish a production line for energy efficient washing machines

*The minimum grant amount for a project implementing this type of emissions reduction measure is $1.5 million, where the carbon savings from the in-service life of the product are to be considered as part of the total carbon savings to be generated by the project. The minimum grant amount for the other listed energy efficiency or emissions reduction measures is $25,000.

Key Merit Criteria:

Grants less than $1.5 million will be assessed against merit criteria 1 to 3 and grants of $1.5 million or more will be assessed against merit criteria 1 to 4 as outlined below:

1. The extent of the reduction in carbon emissions intensity, including through improvements in energy efficiency arising from the proposed project (70 points).
2. The capacity and capability of the applicant to undertake the project (15 points).
3. The extent to which the project maintains and improves the competitiveness of the applicant’s business (15 points).
4. The contribution of the proposed project to a competitive, low carbon, Australian manufacturing industry and the benefits to the broader Australian economy (20 points).

 

Eligible Expenditure:

There are three categories corresponding to the three different phases of the project life cycle:

• Pre-project costs relating to preparatory work: to qualify as eligible expenditure, pre-project costs must be incurred within the 12 month period prior to the lodgement of an eligible application. Eligible pre-project costs are limited to the lesser of five per cent of total eligible project costs or $50,000.
• Project costs relating to undertaking eligible activities within the project period.
• Post-project costs relating to your end of project reporting obligations: only post-project costs incurred and paid up to 15 months after the agreed date the project was completed are eligible.