The Federal Government has announced a 2 year restructuring package to allow Latrobe Valley’s Energy Brix Australia Corporation to maintain briquette production while regional businesses, that rely on briquettes, transition to a cleaner fuel source.
Briquettes produced by Energy Brix are used by approx. 50 businesses nationwide as a crucial part of their operations. They include abattoirs, horticultural and char producers, food processors, dairy processing plants and generators and together employ more than 2,500 people.
Currently, there is no alternative supplier of cost effective briquettes, and making the transition to other cleaner forms of fuel or feedstock will take time and investment.
As a result, the Federal Government will provide $50 million through a restructuring package to assist the company maintain its production of briquettes for a limited period so that downstream users have the required time to switch to cleaner fuels, such as gas.
This restructuring package is in addition to payments of Energy Brix’s entitlements to transitional assistance under the Energy Security Fund.
The Federal Government advises that the restructuring package is expected to help ensure Energy Brix is better equipped to meet its obligations with respect to site rehabilitation and employee entitlements.
Minister Ferguson, Federal Minister for Resource and Energy advises that this restructuring package will work in conjunction with existing Federal Government programs to support the transition of customers to more sustainable fuel sources, including the Clean Technology Investment Program, and the Clean Technology Food and Foundries Investment Program.
Therefore, Energy Brix customers that satisfy the eligibility criteria will be able to apply for grants through these Programs for projects that for example switch their in-house energy production to clean energy sources.
