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Carbon price cements Wagners future

24 Jul 2013

Cement manufacturer, Wagners Queensland Pty Ltd, will use more than $9.6 million in revenue from the carbon price to slash energy costs and improve its competitiveness.

Parliamentary Secretary for Climate Change, Innovation and Industry, Yvette D'Ath along with Wayne Swan, Federal Member for Lilley, today announced that Wagners Queensland had been offered a grant from the Labor Government's Clean Technology Investment Program.

"Wagners is not only a Queensland success story, but a big supporter of jobs on Brisbane's Northside," said Wayne Swan.

"This investment is further evidence of both Wagners and Federal Labor's commitment to driving Queensland's economic development.

"Thanks to this $9.6 million grant, Wagners will be able to improve the production process by reducing the amount of clinker required in the cement making process," he said.

"Cement production is responsible for 5 per cent of the world's carbon emissions and this project shows how the cement industry can make changes that dramatically slash emissions while also improving competiveness," Parliamentary Secretary D'Ath said.

"This project is an example of the type of smart investments companies across Queensland and Australia are making to save energy costs and help the environment."

In addition to the Government's funding, the company will invest $19.2 million of its own money into the project. This will allow the introduction of vertical roller mill (VRM) technology at Wagners' Pinkenba facility.

The grant will help fund the introduction of new milling technology to cut energy costs by up to $2.7 million a year and reduce carbon emissions.

The technology will improve the grinding efficiency of the mill, cutting energy used and reducing the use of clinker by allowing the use of alternative materials. The improvements to the grinding efficiency alone will reduce the carbon emissions intensity - the carbon emissions released per unit of production - at the site by 23 per cent.

The Clean Technology Investment Program provides grants to assist Australian manufacturers to invest in energy efficient capital equipment and low emissions technologies, processes and products. It supports Australian manufacturers to maintain competitiveness in a carbon constrained economy.

An early transition to an emissions trading scheme from 1 July 2014 will benefit businesses through a reduction in energy and gas bills.

Based on current estimates, manufacturing businesses that use a considerable amount of energy but are not emissions-intensive are likely to see a 75 per cent reduction in the carbon cost component of their electricity and gas bills.

Moving to an emissions trading scheme is fundamental to transforming the Australian economy, allowing the nation to grow industries and create jobs while generating fewer carbon emissions.

For more information contact AusIndustry on 13 28 46 or visit

Media contacts: Parliamentary Secretary's office 02 6277 4501 

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