The Australian Government has committed $39.8 million to support Simcoa Operations, the country’s only silicon manufacturer, as part of efforts to reduce emissions and bolster local manufacturing.
The funding, delivered under the Powering the Regions Fund (PRF), will be used to expand charcoal production at Simcoa’s Wellesley facility in Western Australia, eliminating the use of coal in silicon manufacturing.
The investment is expected to lower emissions while maintaining Australia’s silicon manufacturing capability, the government said in a news release.
By replacing coal with renewable charcoal, Simcoa’s emissions will be reduced by 89 per cent, cutting over 100,000 tonnes of carbon dioxide per year—comparable to removing around 30,000 cars from the road.
According to the government, the funding will also secure existing jobs and create new roles in the region.
“The Albanese Government is building a Future Made in Australia by backing manufacturing and securing jobs that support regional communities,” said Minister for Climate Change and Energy Chris Bowen.
“That’s why we are investing in Simcoa and ensuring silicon used in solar panels and products vital for our clean energy transformation not only survives but thrives in a net zero economy.”
Simcoa produces high-purity silicon, which is used both domestically and in export markets. The $39.8 million grant is part of the third batch of the PRF’s $600 million Safeguard Transformation Stream, which aims to support emissions reduction in Australia’s heavy industries under the Safeguard Mechanism.
“This investment will help industry stay in Australia to support a future of clean energy jobs and low-emissions products made right here,” Bowen added.
