Innovative manufacturers across Barker are receiving more than $15 million in support from the Morrison Government so they can invest in their business, employ more locals and get ahead as part of our plan for a stronger economy and stronger future.
As part of the $2.5 billion Modern Manufacturing Strategy, the Morrison Government is continuing to support Australian businesses to turn good ideas into commercial success stories and build critical capability for the future.
Orora will receive up to $12.5 million under the Modern Manufacturing Initiative (MMI) for a$130 million project to implement a low carbon, clean energy glass melting furnace to replace the current G3 glass gas/air fired furnace.
This project will include collaboration with international glass associations, networks and universities to design a furnace fueled by clean energy melting technologies with the flexibility to use different low carbon fuel sources including oxygen, electricity, biofuel and hydrogen. The design will reduce energy consumption by approximately 20 per cent, reduce carbon emissions by 15 per cent and reduce NOx emissions by 80 per cent.
The new G3 low carbon energy furnace will be the first oxy red glass furnace in Australia. The state of the art design incorporating latest technology will provide the pathway for future clean energy glass melting and maintain competitive glass manufacturing in Australia to support the food and beverage industry.
Minister for Industry, Energy and Emissions Reduction Angus Taylor said as a major supplier to the wine and beverage industry, Orora’s project will improve the overall sustainability of their products and allow them to be internationally competitive in overseas markets.
“Importantly, this is a big jobs win for regional South Australia. This project will see the creation of more than 150 jobs during the engineering and construction phases of the project, and the new furnace will protect 120 current G3 operations and maintenance personnel roles plus multiple external contract support jobs,” Minister Taylor said.
“The election on May 21 will be a choice between a Coalition Government which delivers a strong economy that enables investment in Australian manufacturing capability, or a Labor Government that will weaken the manufacturing sector by making Australia a harder place to do business with higher taxes and higher energy costs.”
In addition, South Australian family-owned wine merchant Samuel Smith & Son will receive up to $2.1 million to adopt an in-house de-alcoholising system to produce and bottle low alcohol products to meet the rapidly increasing consumer demand in low alcohol/no alcohol wines and increase efficiencies for quality and cost for competitiveness in global supply chains. The project will also enable up to 50 smaller wineries to access the common user infrastructure through packaging operation technology.
Food and beverage manufacturers across Barker will also benefit from the food and beverage round of the Energy Efficient Communities program, with 34 local businesses receiving grants of up to $25,000 to help lower their energy bills. The funding will support the businesses in upgrading to more energy efficient appliances including refrigeration, carrying out energy audits and installing energy monitoring equipment.
The successful recipients* include Five Star Seafoods in Port MacDonnell which will improve the insulation in its tank room roof, the Barossa Valley Chocolate Company in Tanunda which will upgrade its heating and humidity control systems and Hollick Estates Winery in Penola and Cape Jaffa Wines in Wangolina which will both improve the insulation of their wine tanks to save on energy.
Minister Taylor said a key part of supporting businesses to rebound from the COVID-19 pandemic is by reducing overheads like energy.
“This investment by the Morrison Government could amount to significant savings for these businesses in Barker making a noticeable difference to their bottom line,” Minister Taylor said.
“The food and beverage industry underpins a stronger South Australian economy and we are backing businesses to be more competitive through these grants to lower their power costs, putting more money back in their pockets and supporting the creation of new jobs in right across the Barker electorate.”
Federal Member for Barker Tony Pasin said this support for local businesses in Barker would go a long way to cutting the costs of power, unlocking opportunities for growth whilst assisting in the task of meeting our goal of net zero carbon emissions by 2050.
“Food and beverage manufacturing is an incredibly important sector in Barker, in fact there are more people employed per capita in food and beverage manufacturing in Barker than any other electorate in Australia,” Mr Pasin said.
“By partnering with these local businesses, we are making a strong statement about the future of the local industry and our local communities and making them even better places to live, work and raise a family.”
A re-elected Morrison Government will continue to support small and medium businesses cut their energy costs through a new $60 million Powering Business grants program, and a $17.9 million expansion to the Business Energy Advice Program.
The Energy Efficient Communities Food and Beverage Manufacturing Business Grants program opened in January 2022, for grants of between $10,000 and $25,000 available to food and beverage manufacturing businesses with under 200 employees.