Renewable gas is seen as a potential source of significant economic benefits and job opportunities by stakeholders.
Stephanie Saliba, Director of Corporate and Government Affairs at Mondelēz Australia and New Zealand, highlighted the doubling of gas prices in Victorian factories over the past year, which poses a major challenge for manufacturers.
Addressing the Senate Committee on the “Future Made in Australia” bill on Aug. 29th, Saliba emphasized the need for criteria and processes to attract private capital in key national interest areas.
Mondelēz’s commitment to Australian manufacturing was reaffirmed, with 90 percent of the company’s products sold domestically. However, Saliba pointed out the rising cost of manufacturing as a significant challenge.
She mentioned the 100 percent increase in gas prices at Victorian factories and the necessity for substantial investment to transition equipment to more sustainable energy sources.
Scott McGrath, Director of Government and Media Relations at the Australian Food and Grocery Council, echoed these concerns, citing energy costs, labor shortages, and other input costs as challenges for suppliers post-pandemic.
Saliba outlined Mondelēz’s efforts to reduce energy use, including signing a Power Purchase Agreement for Victorian plants and exploring heat pump technology. Despite these efforts, achieving net zero remains a challenge due to the substantial investments required.
Stakeholders called for tax incentives to support food and grocery manufacturing to enhance global competitiveness and contribute to Australia’s economic prosperity and net-zero transition.
Policy reforms prioritizing renewable energy were advocated to reduce costs and increase sustainability in the sector.
Aligning the ‘Future Made in Australia’ Bill with Gas Strategy
Industry representatives emphasized the need for alignment between the “Future Made in Australia” policy and the gas strategy. David Fallon of Chevron highlighted the importance of consistent policy frameworks for long-term investments in Australia’s energy sector.
Shahana McKenzie, CEO of Bioenergy Australia, pointed out the absence of renewable gas in the current policy and advocated for its inclusion to reduce carbon emissions in the manufacturing sector.
Despite concerns, both Fallon and McKenzie expressed support for the “Future Made in Australia” bill, emphasizing the importance of working in harmony with the Future Gas Strategy.
Ensuring that emerging industries do not overshadow long-standing sectors was another concern raised by industry members.
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