ERF - Industrial Electricity and Fuel Efficiency
The objective of the Emissions Reduction Fund (ERF) is to help Australia meet its emissions reduction target of five per cent below 2000 levels by 2020. Through the ERF, the government will purchase lowest cost abatement (in the form of Australian carbon credit units) from a wide range of sources, providing an incentive to businesses, households and landowners to proactively reduce their emissions.
Opportunities for industry
There are numerous opportunities for industry to participate in the ERF, including through the method for industrial electricity and fuel efficiency. Project managers seeking to use this method would include owners or operators of energy-intensive industrial equipment. Well-designed projects undertaken via the method will have the potential to lower their energy costs and improve productivity, while also reducing emissions.
Projects established under the method may include:
- replacement or modification of boilers
- upgrades to HVAC systems
- improving control systems and processes
- waste heat capture and re-use (such as co-generation and tri-generation projects)
- improving the efficiency of crushing and grinding equipment on mining sites
- replacing low-efficiency motors, fans and pumps with high-efficiency versions
- upgrading to variable speed drives
- improving compressed air processes
- fuel switching.
See the Clean Energy Regulator website for more information on the industrial electricity and fuel efficiency method and opportunities for industry to participate in the ERF.
How to participate
Applicants can receive funding from the ERF by submitting their projects into a competitive auction run by the Clean Energy Regulator. The government will enter into contracts with successful applicants, which will guarantee the price and payment for the future implementation of emissions reductions. See the Clean Energy Regular website to understand and commence the step-by-step process to participate in the ERF.
News and updates
The first ERF auction took place on 15–16 April 2015. Auction results have been announced. Monitor the Clean Energy Regulator and Department of the Environment websites for information on the next auction and other news or subscribe to updates.