Australian Government, 2010‑11 Budget
Budget

Compendium of Priorities and Initiatives (Continued)

Resources, Energy and Tourism

Expanded Clean Energy Initiative

The Government will provide $652.5 million over four years to establish a Renewable Energy Future Fund to support Australia's transition to a low pollution economy prior to the future commencement of the Carbon Pollution Reduction Scheme.

This Fund forms part of the Government's expanded $5.1 billion Clean Energy Initiative. It will provide additional support for the development and deployment of large and small scale renewable energy projects. It will include partnerships between the Government and the private sector to make critical early stage investments to leverage private funds to support the commercialisation of renewable technologies.

The Expanded Clean Energy Initiative also complements the 20 per cent Renewable Energy which will ensure that by 2020, 20 per cent of Australia's energy comes from renewable sources, such as wind, solar and geothermal.

The other elements of the Clean Energy Initiative include:

  • the Australian Centre for Renewable Energy;
  • the Australian Solar Institute;
  • the National Low Emissions Coal Initiative;
  • the Solar Flagships Program; and
  • the Carbon Capture and Storage (CCS) Flagships Program.

Australian Centre for Renewable Energy

The Australian Centre for Renewable Energy is a national renewable energy technology body which will consolidate efforts and provide the focus to boost Australia's capacity to develop, commercialise and deploy renewable energy and enabling technologies. A key activity for the Australian Centre for Renewable Energy is to establish a new venture capital mechanism to help develop promising renewable energy technologies in Australia.

The Australian Centre for Renewable Energy draws together more than $560 million of renewable energy investment, and includes the following Programs:

  • the Renewable Energy Demonstration Program;
  • the Second Generation Biofuels Research and Development Program; and
  • the Geothermal Drilling Program.

Australian Solar Institute

The Australian Solar Institute Limited was registered as a company limited by guarantee under the Commonwealth Authorities and Companies Act 1997 on 10 August 2009.

The Government will provide $100 million over four years to the Australian Solar Institute to support research and development into solar thermal, solar photovoltaic, and other areas of solar energy technology.

As part of the initial funding for the work of the Australian Solar Institute, the Government is providing $15 million to three foundation projects:

  • $5 million to support the development of a crystalline silicon pilot line at the University of New South Wales;
  • $5 million to establish a state-of-the-art solar thermal tower at the CSIRO in Newcastle; and
  • $5 million to assist in the establishment of a world-class process and characterisation solar research facility at the Australian National University in Canberra.

The ASI announced its first round of grants in December 2009 totalling $11.1 million for innovative solar research and development projects.  The five projects relate to photovoltaic (PV) and solar thermal technologies and will be located in Newcastle, Sydney, Brisbane and Canberra. The projects are expected to leverage other funding and deliver a total of $31 million in investment in Australian solar research. 

A second round of grants to be announced in May 2010 will provide $18.9 million for five projects in Sydney, Canberra, Adelaide and Newcastle, delivering a further $67 million investment in innovative solar research.

National Low Emissions Coal Initiative

The Government allocated $500 million over eight years from 2008‑09 to support the National Low Emissions Coal Initiative (NLECI). The NLECI is aimed at accelerating the development and deployment of low-emission coal technology including carbon capture and storage to develop and implement a nationally coordinated strategy aimed at ensuring these technologies are available for deployment from 2020.

The Government established the National Low Emissions Coal Council (NLECC) and the Carbon Storage Taskforce (CSTF) in 2008, as part of the NLECI announced in the 2008‑09 Budget.

The CSTF has developed and provided the Government with a National Carbon Mapping and Infrastructure Plan. The Plan's recommendations are currently being implemented.  In particular, the Government is providing financial assistance under this plan to WA, NSW, Victoria and Queensland to conduct pre-commercial geological storage assessments.

The NLECC has brought together key stakeholders to develop and implement a national low-emissions coal strategy to contribute to the Government's longer term overall policy objectives of reducing carbon emissions while improving energy security. The NLECC has advised the Government on the establishment of the Australian National Low Emissions Coal (ANLEC) Research and Development Ltd and endorsed ANLEC's initial research program. It also provided advice to the Minister for Resources and Energy on CCS issues, including the development of selection criteria for the short listing of CCS Flagships projects which are currently being assessed. In addition the NLECC has provided the Minister its strategy aimed at accelerating the deployment of low-emission coal technologies. The strategy is being considered by the Government. 

Global Carbon Capture and Storage Institute

The Government committed up to $100 million per annum from 2008‑09 to fund the Global Carbon Capture and Storage Institute. On 12 June 2009 the Global Carbon Capture and Storage Institute was registered as a company limited by guarantee and commenced operation on 1 July 2009.

The Australian-based Global Carbon Capture and Storage Institute will help deliver the G8's July 2008 goal of developing at least 20 fully integrated industrial scale demonstration projects around the world to accelerate the broad deployment of CCS technology by 2020. It will promote the collaboration of existing efforts; share non-proprietary knowledge; seek out mechanisms to address technological and financial gaps; develop technology roadmaps; and produce assessments on the status of CCS technologies.

Tourism Initiatives

A National Long-Term Tourism Strategy was launched by the Government on 15 December 2009. It provides a work plan for skills, infrastructure and removing barriers to investment, giving investors greater confidence in the sector's long-term prospects. The work plan includes better research for the industry and less red tape to encourage more tourism investment.

Establishment of a National Tourism Accreditation Framework

The Government has provided $5.5 million over four years to establish a National Tourism Accreditation Framework. The Framework will be an effective mechanism for quality assurance in the tourism industry and will assist to streamline and improve the existing processes of accrediting tourism businesses. It will bring together over twenty existing ratings and accreditation programs under one governance framework.

Extension of the China Approved Destination Status Scheme

Quality assurance in the tourism industry continues to be a priority of the Government with $4.1 million being committed to extend the China Approved Destination Status Scheme for four years.

The Scheme will ensure inbound tour operators continue providing a quality service to leisure tour groups from China, based on their compliance with the ADS Code of Business Standards and Ethics. Ongoing improvement in the quality of services provided to Chinese tourists has the potential to increase significantly the number of Chinese leisure tour visitors to Australia. The Scheme has been very successful to date in removing, and keeping out rogue operators from the industry.

TQUAL Grants

The TQUAL Grants Program was launched in April 2009, with up to $8.3 million available over two years (2009‑10 and 2010‑11) under a competitive program to fund eligible tourism projects across metropolitan and regional Australia.

The objective is to stimulate sustainable growth in the Australian tourism industry by supporting initiatives that:

  • develop innovative product, services or systems within the tourism industry;
  • contribute directly to long-term economic development in the host region; and
  • develop or support high quality visitor services and experiences.

Rum Jungle — Northern Territory

The Government has provided $8.3 million over four years from 2009‑10 and 2012‑13 to contribute to the resolution of environmental, economic development and Indigenous land access issues currently presented by the former Rum Jungle site. The initiative will have a positive impact on the Batchelor region in the Northern Territory.

The project will:

  • undertake site monitoring and maintenance activities at the former Rum Jungle site, which will provide regional employment opportunities and contribute to the protection of the Finniss River system;
  • bring together the site's traditional owners, the Northern Territory Government and industry to guide and contribute to this process; and
  • support ongoing management of the site to maintain and improve the effectiveness of the current rehabilitation structures.

Ethanol Production Grants Program

The Ethanol Production Grants Program was designed to facilitate ethanol as part of the transport fuel mix in Australia. It commenced in 2002 and will operate until 30 June 2011. Grants are paid to ethanol producers at a rate of 38.143 cents per litre. Recipients include Dalby Biorefinery (Dalby, Queensland), Sucrogen BioEthanol Pty Ltd (Sarina, Queensland), and Honan Holdings (Nowra, New South Wales).

Working in Partnership Program

The Working in Partnership Program is allocated $0.5 million a year to support and encourage cultural change taking place in relations between Indigenous communities and the mining industry, promoting long-term, effective partnerships that benefit all stakeholders. It provides funding for regional workshops and support for committees and projects that address issues such as employment, education and training, business opportunities, cultural awareness, capacity building and economic empowerment.

Kimberley LNG Precinct

The Government is working with the Western Australian Government, Woodside Energy and the Kimberley Land Council to move forward with the Kimberley Liquefied Natural Gas precinct at James Price Point.

Further information

Further information about these and other resources, energy and tourism initiatives relating to rural and regional Australia is available at www.ret.gov.au.

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