Australia's leadership in clean and renewable energy technologies received a boost with the establishment of three new measures in the 2008-09 Budget:
Funding will commence in the 2008-09 year for the Energy Innovation Fund's solar research component and the National Clean Coal Fund while funding for the Renewable Energy Fund will commence in 2009-10.
The phasing of this funding will allow time for consultation and decisions on funding guidelines. It will also allow potential applicants to plan projects in accordance with these guidelines and in the context of other climate change policies; including the design of the emissions trading scheme and the renewable energy target.
The Minister for Resources and Energy, Martin Ferguson, said: "The EIF will boost Australia's existing momentum in solar technology research, particularly solar thermal which has great potential for baseload power and in which the CSIRO in Newcastle is a world leader. Solar photovoltaics will also benefit from the EIF. $100 million will go to solar technology research through the EIF, to be administered by a new body, the Australian Solar Institute.
"The EIF will invest a further $50 million in other innovative technologies including energy storage and hydrogen", Minister Ferguson said.
"The REF will accelerate the development and commercialisation of new renewable energy technologies in Australia by demonstrating these technologies on a commercial scale. Initial funding from the REF will go to geothermal energy which has already demonstrated great potential in Australia. $50 million will be directed to a Geothermal Drilling Program for 'proof-of-concept' projects in known resource areas.
"Second generation biofuel technology will also be a high priority for funding with $15 million to be allocated from the REF," Minister Ferguson said.
The Australian Government is also establishing a $500 million National Clean Coal Fund to support the National Clean Coal Initiative aimed at deployment of low emission technologies out to 2030. Coal producers are contributing more than $1 billion in funding through Coal21. This concentrated funding will provide an enormous opportunity for breakthroughs in clean coal technologies, including carbon capture and storage. Australia already has a number of demonstration projects under way or well advanced, including the deep geological storage project in the Otway Basin in Victoria and an oxy-firing project at Callide in Queensland.
The National Clean Coal Fund also includes $75 million - including $25 million for CSIRO - to be invested in clean coal research.
"Coal accounts for more than 80 per cent of Australia's electricity supply. It is also Australia's biggest export, reflecting its importance in the global energy mix. Export revenue from coal is predicted to increase by around $20 billion to $43 billion in 2008/09," Minister Ferguson said.
"Coal is vital to the Australian economy and to the developing world as it lifts its people out of poverty. Therefore no serious response to climate change can ignore the need to clean up coal. It is important that we reduce its carbon footprint so that all Australians can continue to benefit from this significant natural endowment and emerging nations can grow their economies in a sustainable way."
"We have great potential to build on our already substantial work in renewable and clean energy technology research and development. These programs will provide industry with an opportunity to develop, demonstrate and commercialise new technologies for Australia's future energy security."
Detailed fact sheets on each program are separately available: