Under the 16-year fund project, the government aims to accelerate the development of new large-scale greenhouse gas abatement technologies by providing competitive grants of $20 million and upwards to individual Australian projects demonstrating the commercial viability of their technologies, according to resources and industry minister Ian Macfarlane.
The government expected the fund to leverage an additional $1 billion in private sector investment in such technologies.
"The demonstration fund will support low-emission technologies across the full spectrum of energy sources - from renewable energy initiatives to fossil fuel and energy efficiency technologies," Macfarlane said.
"It's a serious investment that will ensure Australian industry is an active and innovative partner in securing a low-emissions future for our nation."
Eligible technologies could include hot dry rocks, new renewable energy technologies such as large-scale solar concentrators, coal-fired generation with carbon capture and storage, and energy efficiency technologies in the stationary and transport energy sectors.
“The key criterion will be the ability of the technology to reduce Australia’s energy sector emissions by at least two per cent per annum over the longer term, and the potential to be available commercially by 2020 to 2030,” he said.
But the inclusion of coal in its low emissions technology would only delay the serious action needed to address climate change, according to the Australian Greens.
"The integrity of the fund is undermined by including coal-fired generation with carbon capture and storage," Greens energy spokesperson Christine Milne said.
"The overwhelming majority of government funding already goes to coal-fired power. This latest fund is another example of corporate welfare for the coal industry whose greenhouse gas pollution will continue to be subsidised by public funds at the rate of $1 of government funds for every $2 from industry."
She criticised the government's goal of reducing emissions by 2% per annum from 2030 as emiisions growth was currently running at 2.4% per annum.
"This is nowhere near good enough when we need to aim for a reduction of around 60%," Milne said.
"This fund should be devoted to supporting proven renewable energy technologies and energy efficiency, aiming at no emissions, if we are to avert catastrophic damage to Earth's ecosystems that we all rely upon.
"Capping greenhouse gases and introducing a trading scheme with a maximum level of emissions from any new power station would drive innovation in the energy industry."
