BOC has secured a $10 million grant funded from the federal government’s carbon tax revenue to upgrade its Kwinana facility.
The announcement came as Prime Minister Julia Gillard and Energy and Resources Minister Gary Gray toured the facility today.
The supplier of compressed gases will use the grant to replace its existing air separation unit and nitrogen liquefier unit with an air gas liquidation plant.
BOC will also provide $25 million for the upgrade, bringing the total investment to $35 million.
Both BOC and the federal government say the new plant will reduce the carbon emissions by 50 per cent, and reduce energy costs by $3.5 million a year.
BOC Tonnage business director Stephen Sheppard thanked the government for its contribution and said the upgrade would also increase the plant’s production.
The $10 million grant was awarded to BOC as part of the federal government’s Clean Technology Investment Program, one of three programs that awards grants with funds collected from carbon price revenue.
In a statement, the government said the grant to BOC was an example of how it was working with manufacturers across Australia to reduce energy costs, increase competitiveness, and reduce emissions.
The Kwinana plant is described as a key milestone in BOC’s $100 million investment strategy for Western Australia, with production expected to start in 2014.
