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The resources sector has welcomed the Federal Government’s $1 billion technology fund to boost investment in Australian companies to develop new low emissions technology.

The Low Emissions Technology Commercialisation Fund will combine $500 million of new capital for the Clean Energy Finance Corporation (CEFC) with $500 million from private sector investors.

Minerals Council of Australia (MCA) chief executive officer Tania Constable said the fund will play an important role in driving the development and deployment of the technologies required to decarbonise Australia.

“By addressing an investment gap facing these new technologies, the fund will allow these to be properly developed,” Constable said.

“Many of these technologies are being developed by Australia’s world leading resources sector including carbon capture use and storage, hybrid energy systems at mine sites and creation of clean hydrogen.

“The MCA sees the focus on developing and deploying low emission technologies as the best way to meet Australia’s goal of net zero emissions by 2050, while also encouraging new investment in the broad range of minerals and resources required to meet rising domestic and international consumer demand.”

Australian Petroleum Production and Exploration Association chief executive Andrew McConville said technology is already leading the charge in the oil and gas industry.

‘With the fund supporting further investment in technology, it will help reach the targets that have been set and agreed,” McConville said.

‘’The oil and gas industry will also create new jobs and new exports using these technologies as we make our way to net zero.”

Minister for Industry, Energy and Emissions Reduction Angus Taylor said the fund will support Australian innovators to develop their intellectual property and grow their businesses in Australia.

“It will address a gap in the Australian market, where currently small, complex, technology-focused start-ups can be considered to be too risky to finance,” Taylor said.

The Government will introduce legislation to establish the fund in this term of Parliament.

Prime Minister Scott Morrison said Australia can become a world leader in creating low emissions technology that is both affordable and scalable, helping get emissions down while creating jobs.