Manildra Group's Shoalhaven Starches food manufacturing facility in Bomaderry is in line for a $44.5 million boost to help with energy efficiency upgrades.
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Federal member for Gilmore Fiona Phillips said the project would create new jobs during construction and secure existing roles at the plant which continues to support local families and the community.
The funding has been made available through the Albanese government's Powering the Regions Fund.
The Shoalhaven Starches upgrade is one of nine clean energy and emissions reduction projects at heavy industrial sites around the country.
A total of $330 million will help to keep Australian industry not just surviving but thriving, as demand for low emissions products grows around the world.
Minister for Climate Change and Energy Chris Bowen said the grants would future-proof Australia's heavy industries in a decarbonising world.
He said the nation-wide projects would also cut 830,000 tonnes of emissions every year, equivalent to taking over a quarter of a million cars off Australian roads.
Mrs Phillips said the Shoalhaven Starches project aimed to recover heat to enable transformative emission reductions at the Bomaderry facility which processes wheat to produce flour. It also produces gluten, starch, ethanol, animal stockfeed and syrups.
"The project will deploy a suite of heat recovery upgrades and enabling infrastructure to reduce gas demand," she said.
"It's estimated that emissions will be reduced by 95,266 tonnes of carbon dioxide equivalent per annum."
Shoalhaven Starches has 510 employees and 400 independent contractors. More than 80 temporary jobs will be created during the project.
"Shoalhaven Starches is a major employer in the Shoalhaven and I'm thrilled to see this funding going towards infrastructure upgrades to help reduce emissions," Mrs Phillips said.