Australia’s only silicon manufacturer has received an almost $40 million grant from the federal government, securing local supply of the key input for solar panels and semiconductors.
Simcoa secured the funding under the Powering the Regions Fund on Thursday, allowing the company to remove the use of coal at its silicon processing plan in Wellesley, Western Australia.
It will use the $39.8 million grant to substitute coal with renewable charcoal, reducing its emissions by 89 per cent, over 100,000 tonnes per year – the equivalent of new data centre emissions last year.
Silicon is a key input used in solar panels, which the federal government has identified as a key focus through its Future Made in Australia policy, as it seeks to wean itself from Chinese solar dominance.
The government has allocated $1 billion to building supply chain resilience in solar panel manufacturing through its Solar Sunshot program, which was criticised by some economists.
Announcing the grant on Thursday, Climate Change and Energy minister Chris Bowen said the investment would maintain Australia’s silicon manufacturing capability, providing job security for 220 existing employees.
“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,” he said.
“This investment will help industry stay in Australia to support a future of clean energy jobs and low-emissions products made right here.”
The Silicon grant is part of the third batch of funding from the Powering the Region Fund’s $600 million Safeguard Transformation Stream, which closed in November.
The program, which aims to help Australia become a renewable energy superpower and reduce its emissions to net zero by 2050, offered up to $50 million to heavy industry companies covered by the Safeguard Mechanism.
Other recent grant recipients since the stream opened in August 2023 include Incitec Pivot Fertilisers ($30.8 million), Kestrel Coal ($40.9 million) and Shoalhaven Starches ($48.9 million).
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