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Climate Solutions Fund > How it works > Explore project types > Industrial electricity and fuel efficiency projects

Industrial electricity and fuel efficiency projects

The benefits

An industrial electricity and fuel efficiency project improves the efficiency of energy-intensive equipment in order to reduce the amount of greenhouses gases released into the atmosphere. This reduction in emissions earns Australian carbon credit units (carbon credits).

Enhanced industrial efficiency has a number of benefits:

The benefits

An industrial electricity and fuel efficiency project improves the efficiency of energy-intensive equipment in order to reduce the amount of greenhouses gases released into the atmosphere. This reduction in emissions earns Australian carbon credit units (carbon credits).

Enhanced industrial efficiency has a number of benefits:

 

Diversified revenue

Carbon credits provide another income stream for your business.

 

Lower energy bills

Improving the efficiency of your equipment lowers your energy bills.

 

Future proofing

Cost savings and efficiency improvements help grow your business.

 

Environmental action

Be recognised for your contribution to Australia’s emissions reductions.

Help with these projects

 
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The basics

Introduction to Industrial electricity and fuel efficiency projects, how they work and their eligibility requirements.

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The details

Further information and resources on industrial electricity and fuel efficiency projects can be found under the Emissions Reduction Fund.

 


How these projects work

Projects involve upgrading industrial equipment to reduce electricity or fuel consumption. Upgrades can be applied to a wide range of industrial equipment, such as boilers, motors, compressed air systems as well as heating, ventilation and cooling systems. Activities can also include changing fuel sources, such as switching from diesel to gas. Multiple activities can be included in a single project.

You earn carbon credits for the difference in emissions before and after the upgrades are installed.

Project activities

You can improve your energy efficiency by undertaking a range of activities, such as:

  • Modifying, removing or replacing equipment — for example, installing waste heat recovery systems.
  • Changing how equipment is controlled or operated — for example, installing smart energy control kits.
  • Changing the energy sources used by equipment — for example, switching from diesel to electricity as your fuel source.
  • Installing electricity-generating equipment to replace grid electricity consumption — for example, installing solar panels.

Eligibility requirements

To be eligible you must:

  • Receive eligible waste. Waste is eligible if it is mixed solid waste generated by the domestic (e.g. household and council collections, commercial and industrial (e.g. retail, hospitality or manifesting) or construction and demolition sectors.
    • Identify eligible upgrades or types of upgrades when you register your project.
    • Waste is ineligible if:
      • For activities related to electricity generating equipment at a site — the equipment must either have a capacity of less than 30 megawatts, or not be able to export electricity to an external electricity grid.
  • Ensure project activities are not required to be carried out under a Commonwealth, state or territory law.
  • Ensure your upgrades do not also receive benefits from a Commonwealth, state or territory energy efficiency scheme (for example, under the New South Wales Energy Savings Scheme).
  • Establish legal right (the right to run your project and claim carbon credits) — for example, by having operational control of the business.
  • Make sure your project is new — you cannot start project activities until after we register your project.
  • There are particular rules about projects involving fuel switching for renewable power stations connected to the electricity grid. If you are interested in a fuel switching project that involves the installation of on-site renewable electricity generation to displace grid consumption, we suggest you contact us to discuss your project at an early stage.

Running and reporting on your project

As part of registering a project, you will need to describe your proposed activities and calculate your expected carbon credits.

There are operating, monitoring, reporting and audit obligations in running an industrial electricity and fuel efficiency project. You will need to report on your project at least once every two years. You receive carbon credits each time you report calculated emissions reductions over a period of seven years.

Relevant legislation and resources


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