Manufacturing sector roadmap to double energy productivity

CSIRO manufacturing
Image: CSIRO

The Australian manufacturing industry is aiming to double energy productivity by 2030.

The2xEP Manufacturing Sector Roadmap has been developed by the Australian Alliance to Save Energy (A2SE) and a steering committee of senior business leaders to determine what manufacturers can do to improve energy productivity. The report also explores policy support from government, and how policies can unlock manufacturing productivity improvements throughout Australia.

Minister for Resources, Energy and Northern Australia Josh Frydenberg said industry can drive growth and innovation in the transition to a low carbon future.

“Improving energy productivity is about obtaining more value from the energy we consume. By improving Australia’s energy productivity, we boost our competitiveness, help consumers manage their energy costs to reduce bills, and reduce our carbon emissions,” the Minister said in a statement.

Manufacturing contributes 8 per cent of the nation’s GDP and uses about $14 billion worth of energy a year. The A2SE estimates in doubling its energy productivity by 2030, the manufacturing sector could reduce the cost of its energy use by $5 billion per annum.

“The Government is committed to improving Australia’s energy productivity by 40 per cent between 2015 and 2030. The National Energy Productivity Plan (NEPP), developed by the COAG Energy Council, brings together a wide range of opportunities into a coordinated, national plan to achieve this target,” Minister Frydenberg said.

To date, the government has provided $260,000 to A2SE to support the development of five sector roadmaps, of which manufacturing is the first. As part of the NEPP, the government is also supporting the A2SE to develop a proposal for the 2xEP Challenge. The Challenge, outlined in the manufacturing roadmap, will recognise leading companies for their public commitments to greatly improve their energy productivity.