ANNOUNCEMENT 24 Dec 2019

The Australian government-funded Clean Energy Finance Corporation together with the Australian Renewable Energy Agency announced the allocation of up to AUD 75.5 million to finance the construction of an energy-from-waste plant co-developed by New Energy Corporation, Hitachi Zosen Inova (HZI), Tribe Infrastructure Group, John Laing and ACCIONA.

NUMBER OF INTERVENTIONS

3

  • 2 harmful
  • 1 neutral
  • 0 liberalising

SOURCE

Clean Energy Finance Corporation. Media. Latest News. "CEFC spearheads investment in energy from waste sector backing second WA facility" of 24 December 2019. Available at: https://www.cefc.com.au/media/files/cefc-spearheads-investment-in-energy-from-waste-sector-backing-second-wa-facility/

Australian Government. Department of Industry, Innovation and Science. Australian Industry Participation. Available at: https://industry.gov.au/industry/IndustryInitiatives/AustralianIndustryParticipation/Pages/default.asp

Australian Renewable Energy Agency. News. "Second energy from waste plant to reduce waste going to landfill" of 24 December 2019. Available at: https://arena.gov.au/news/second-energy-from-waste-plant-to-reduce-waste-going-to-landfill/

Inception date: 24 Dec 2019 | Removal date: open ended
Still in force

State loan

On 24 December 2019, the Clean Energy Finance Corporation (CEFC) of Australia announced the allocation of up to AUD 57.5 million subordinated debt facility (over USD 39.8 million at the time of the announcement) to support the construction of the East Rockingham Resource Recovery Facility, an energy-to-waste plant located in Western Australia. 

The energy project is co-developed by New Energy Corporation, Hitachi Zosen Inova (HZI), Tribe Infrastructure Group, John Laing and ACCIONA, and it is expected that it will process about 300,000 tonnes of residual waste per year, reducing annual CO2 emissions and producing enough renewable energy to power over 36,000 homes.

The total costs of the project are expected to reach AUD 511 million (circa USD 355.8 million). 
 
The development of this project is aligned with the Waste Avoidance and Resource Recovery Strategy 2030 of Western Australia's regional government. In this sense, the East Rockingham Resource Recovery Facility is the second energy-to-waste being built in Western Australia (please, see related state acts). 
 
 
Clean Energy Finance Corporation
The Clean Energy Finance Corporation is a government-funded financier created to fund clean energies. To achieve these goals, the Australian government has provided credits of AUD 2 billion each year from 1 July 2013.

The statutory text, the Clean Energy Finance Act 2012, states that only solely or mainly Australian-based investments are eligible for these resources.

AFFECTED SECTORS

 

AFFECTED PRODUCTS

 
Inception date: 24 Dec 2019 | Removal date: open ended
Still in force

Local sourcing

The Clean Energy Finance Corporation financing is subject to the Australian Industry Participation (AIP) policy. This framework states that all programs enclosed in this policy must encourage the participation of Australian companies in major public and private projects carried in the country. In this sense, companies applying for a CEFC credit line must provide an AIP Plan to demonstrate the strategy to maximize opportunities for Australian industry to participate in the project. Therefore, it can be understood that the AUD 57.5 million finance (over USD 39.8 million) allocated to the East Rockingham Resource Recovery Facility is subject to local content requirements.

 
N/A
Inception date: 24 Dec 2019 | Removal date: open ended
Still in force

Financial grant

On 24 December 2019, the government-funded institution Australian Renewable Energy Agency has announced on the allocation of a recoupable grant of AUD 18 million (circa USD 12.5 million) to assist in the development of the East Rockingham Resource Recovery Facility. More specifically, the financial grant will support the construction of an energy-from-waste plant co-developed by New Energy Corporation, Hitachi Zosen Inova (HZI), Tribe Infrastructure Group, John Laing and ACCIONA, that is to be built in Western Australia.

Notably, the project also was awarded a loan, see related intervention.