The Clean Energy Finance Corporation (CEFC) has pledged $21 million toward the development and commercialisation of new decarbonisation technology.
The investment will be made to the private equity fund RCF Jolimont Mining Innovation Fund II, which targets early to late-stage private Mining Equipment, Technology and Services (METS) companies in Australia and internationally with strong growth potential.
The CEFC commitment will be directed towards clean energy businesses developing industry specific software and technology developments to improve energy efficiency, develop mine-specific renewable energy storage solutions and increase electrification of mine site vehicles.
As a large emitter of greenhouse gas emissions, the mining sector offers untapped potential to help Australia reach its net zero commitments.
It accounts for 9.5 per cent of national Scope 1 and 2 emissions, with higher downstream emissions depending on the commodity.
The high energy intensity of mining, heavy reliance on emissions intensive fuels like diesel and gas, and lack of access to grid electricity have made it a challenging sector to decarbonise.
The Fund will consider the decarbonisation potential of the technologies under development and look for opportunities that foster an increased focus on net zero targets, with an emphasis on baseline reporting of Scope 1 and 21 emissions.
CEFC Resources Executive Director, Rob Wilson, said decarbonisation was critical to the future viability of mining industries.
“Decarbonising the mining industry is critical to Australia’s push towards net zero emissions and will position Australia competitively for the future,” Mr Wilson said.
“The Australian METS sector is a global leader in developing and implementing such technologies, giving Australian miners a competitive advantage.
“By driving the decarbonisation across Australia’s mine sites and related processing operations, we can help position the sector to benefit from the transition to a low emissions economy.
“We are particularly pleased to be working with RCF who have exceptional experience in mining-focused private equity and in fostering the growth of mining innovation companies.
“The potential pipeline of investee companies offers an exciting opportunity to recast mining in Australia for the long term.”
A recent CEFC report into the mining sector found a strong business case for decarbonisation and warned that mining operations that did not act could suffer reduced competitiveness as the world transitioned to net zero emissions.
The compelling case for decarbonisation: Mining in a low emissions economy, released by the CEFC and the Minerals Research Institute of Western Australia, said technology would play a significant role in decarbonisation and enable the sector to capture the economic benefits of the low emissions economy.
RCF Jolimont II Partner and Head of Funds, Lyle Bruce, said global appetite for decarbonisation would require new methods of acquiring critical minerals.
“The global community’s ambitious decarbonisation objectives require access to critical minerals like lithium, copper, nickel, and others that are essential for electrification and decarbonisation. Low impact mining and mineral processing is possible with the application of innovation and technology,” Mr Bruce said.
“Mining now and into the future involves automation, robotics, predictive analytics, the internet of things – these are the emerging technologies mining is using to help us get to a low emissions world.”
CEFC investments in the resources sector include the Pilbara Minerals’ Pilgangoora Project in Western Australia and technology startup Novalith for more sustainable lithium mining and production.
The CEFC has also invested in Australian battery technology producer 3ME Technology, enabling miners to replace diesel engines with cutting-edge battery systems, and financed the world’s heaviest hydrogen zero emissions electric trucks through its commitment to Ark Energy Corporation in Queensland.
