The Australian Government has announced a two-year restructuring package to allow the Latrobe Valley’s Energy Brix Australia Corporation to maintain briquette production while regional businesses that rely on briquettes transition to a cleaner fuel source.

 

Briquettes produced by Energy Brix are used by around 50 businesses nationwide as part of their operations.  Currently, there is no alternative supplier of cost effective briquettes and making the transition to other cleaner forms of fuel or feedstock will take time and investment.

 

As a result, the Government will provide $50 million through a restructuring package to help the Latrobe Valley-based company maintain its production of briquettes for a limited period of time so that downstream users have the required time and certainty to switch to cleaner fuels, such as gas.

 

This restructuring package is in addition to payments of Energy Brix’s entitlements to transitional assistance under the Energy Security Fund.

 

The businesses that rely on briquettes range from abattoirs, horticultural and char producers, food processors, dairy processing plants and generators and together employ more than 2500 people throughout regional communities.

 

The restructuring package will help ensure Energy Brix is better equipped to meet its obligations with respect to site rehabilitation and employee entitlements.

 

Energy Brix customers that satisfy the eligibility criteria will be able to apply for grants from these Clean Technology Programs for projects that for example switch their in-house energy production to clean energy sources.

 

The Department of Industry, Innovation, Science, Research and Tertiary Education will manage the transition arrangements.