Economic diversification behind $148m funding push

The state government will invest more than $148 million in 40 projects state-wide, with DUG Technology, Austin Engineering, Kimberley Cotton Company and Stanley International College among the winners.

The co-funding initiative will see the state dish out grants through its Investment Attraction Fund, to projects spanning the eight priority sectors identified in the economic diversification strategy released earlier this year.

The biggest funding winner was Future Energy Exports Cooperative Research Centre, which was given $15 million towards its Kwinana Energy Transformation hub (KETH) – a cryogenic gas and green hydrogen testing facility.

Funding of $5 million was provided to 12 businesses – Austin Engineering, DUG Technology, European Foods Wholesalers, Future Green Solutions, Infinite Green Energy, Linley Valley Pork, Milne Feeds, Opal Biosciences, Rose Hotel Bunbury, Stanley International College and Wide Open Agriculture.

Austin’s funding will go towards automation manufacturing technology for the mining sector.

Space sector funding incorporates DUG’s climate-positive high performance computing campus at Geraldton. Stanley International College will be supported to establish nursing and allied health, culinary arts and ICT schools.

Primary industries projects attracting maximum funding include European Foods’ Blue Cow Dairy project in the Swan Valley; Linley’s manufacturing and traceability technology for pork; Future Green’s closing the loop food supply chain initiative; Milne’s John Street mill fibre and compound ruminant feed mill expansion; Kimberley Cotton Company’s Ord cotton gin; and Wide Open’s plant-based milk production facility.

Fertiliser firm Richgro Garden Products was given $4.8 million of funding.

Infinite’s MEGHP1 green hydrogen project attracted maximum funding in the energy space, with FutureEnergy Australia’s Narrogin project and Magellan Power’s advanced manufacturing battery ecosystems hub for the Pilbara and Rockingham also receiving grants above $4 million.

Opal’s funding falls under health and medical life sciences, towards small scale formulation and manufacturing of sterile liquids, including vaccines. VitalTrace was given $4 million towards its medical biosensor technology.

Rose Hotel will put its funding towards its West End precinct project, also in Geraldton.

In all, 29 businesses received grants ranging from $500,000 to $4.8 million.

Speaking at the Perth Airport facilities of $2.4 million funding recipient and renewable technology manufacturer Pacific Energy, Premier Roger Cook said the funding was allocated to businesses which would help the state broaden its economic scope.

“As we diversify our economy, our economy becomes more resilient, and we can ride out the boom and bust cycles which we have been a victim of for so many years because of our reliance on the resources industry,” he said.

“More than half of the successful 40 projects are located in regional WA or have statewide operations, with the remaining 19 here in the metropolitan area.”

Pacific Energy, one of two companies which supplies standalone power systems to government entity Western Power, says it will be able to employ an extra 50 people at its Perth Airport facility off the back of today’s announcement.

Pacific Energy chief operating and technology officer Michael Hall said demand was growing significantly for standalone power systems.

“Western Power in its own right has a large program to deliver on,” he said.

“They’ve identified 6,000, to date they’ve only delivered, as a consortium with all the other companies, around 300. So there is a lot of trajectory there.

“We’re also seeing a lot of demand growth in mining community as well. These small systems add a lot of value to the overall picture of trying to hit those last elements of their [energy] targets.”

The largest grant recipient, Kwinana Energy Transformation Hub, said its $15 million grant was a vital milestone in its progression to a final investment decision. 

"This grant will provide us with the momentum needed to take a final investment decision on phase one which will include hydrogen, training, and research and development facilities," KETH chief executive Simona Chady said. 

"With this milestone, the project will be one of the first operational facilities in Kwinana, WA.

"Over 50 separate research projects are planned for KETH and it will also play a crucial role training the workforce needed for tomorrow’s energy system."

DUG managing director Matt Lamont said the funding towards the firm's Geraldton computing facility would help it grow its computing power 13-fold. 

"The project has the potential to be transformational for the business and for WA in data processing and storage," he said.

"We have been committed to this project since 2021 and have been working through project funding solutions and groundworks required to the site."

Mr Lamont said Geraldton was the ideal site for the project, with ready access to wind and solar power and physical space available for expansion. 

More than 200 businesses applied for the round of funding support.