Manufacturers looking to upgrade their equipment or undertake energy efficiency boosting projects will benefit from a new CEFC loan agreement.
The Clean Energy Finance Corporation (CEFC) has committed $50 million to support businesses looking to improve their energy productivity.
The CEFC commitment for Energy Efficiency Loans (EEL) is matched by Commonwealth Bank.
The arrangement is a significant scale up on the previous agreement that Commonwealth Bank had with Low Carbon Australia to co-finance energy efficiency and small scale renewable projects.
Some $10.5 million of investment projects have already been funded by the co-financing arrangement with Low Carbon Australia, which has now been integrated into the CEFC, to assist manufacturers to reduce energy costs, including a trigeneration plant, industrial refrigeration upgrade and more efficient printing presses.
The partnership between CEFC and Commonwealth Bank will provide over $100 million in new funding for mid-range businesses seeking to reduce their energy costs.
The Energy Efficiency Loans are designed to help businesses upgrade equipment for improved energy efficiency and can be used to finance up to 100 per cent of the project cost.
The EEL can be used to fund a wide spectrum of equipment including energy efficient lighting, industrial refrigeration, methane capture, heat exchangers, energy efficient motors, pumps and fans, solar panels, compressed air and variable speed drives, cogeneration and trigeneration plants.
Some companies that have already leveraged EEL include Labelmakers, who installed new printing presses that cut energy costs by 14 per cent and saved them more than $4 million a year in operational costs; and apple and pear supplier Radevski Coolstores in Victoria, which its refrigeration energy use by about a quarter and reduced costs by about $140,000 a year.