The Australian Conservation Foundation slammed the decision not to renew the $10.4 million the Australian Co-operative Research Centre had received since July 1996, saying the closure comes as more taxpayer funds are diverted into the minerals sector.

Federal Science Minister Peter McGauran this week announced $68.5 million worth of research and development funding for the minerals and energy sector.

"These moves by the Federal Government show that its entire energy program is hostage to the commercial imperatives of large resource companies," said an ACF climate campaigner.

In response, a spokesperson for Industry Minister Ian Macfarlane said it was the Government's priority to encourage technologies that would impact on greenhouse gas emissions directly and within a short time frame.

"We need results in our lifetime and ones that make sense in terms of the Australian economy," Mr Macfarlane spokesperson said.

WA Deputy Premier and Energy Minister said the Howard Government's decision for one of the nation's leading renewable energy research centres was a devastating blow to the development of clean, green energy projects.

"The Federal Government's decision will set back renewable energy research and development in WA by years," Mr Ripper said.