Simcoa Operations Receives Grant to Reduce Emissions and Boost Solar Supply Chain
Australia’s sole silicon producer, Simcoa Operations, is poised to benefit from a $A39.8 million grant from the Albanese Labor government. This grant, part of the Powering the Regions Fund (PRF) Safeguard Transmission Stream, aims to support the reduction of coal dependency in silicon manufacturing. Federal energy minister Chris Bowen made the announcement during a press conference in Kwinana, where he also disclosed funding for a large green hydrogen production plant in Western Australia and the outcomes of a battery storage tender.
The funding provided to Simcoa Operations is intended to assist the industry in remaining in Australia and fostering a future of clean energy jobs. Given that silicon plays a crucial role in solar PV panels, this financial support could also bolster the Solar Sunshot program, which strives to establish a dedicated solar supply chain within the country.
Transitioning from Coal to Charcoal
Simcoa Operations, which was acquired by Japan’s Shin-Etsu Chemicals in 1996, currently operates a silicon manufacturing plant situated about 140km south of Perth at Kemerton Industrial Park in Western Australia. The company exports approximately 85% of the 52,000 tonnes of high purity silicon it produces annually. Despite its significant export volume, Simcoa remains a key supplier of silicon to the Australian domestic market, albeit the market share in solar cell production is relatively small.
To reduce its reliance on coal, Simcoa plans to utilise the grant from the federal government to enhance the use of charcoal in its silicon manufacturing process. In the production of silicon metal, a carbon source like coal or charcoal is necessary. This carbon source reacts with silicon dioxide to extract the metal, generating carbon dioxide and silica fume as by-products. Simcoa currently produces around 13,000 tonnes of silica fume each year, often used to enhance the properties of concrete.
Supporting the Green Energy Transition
The shift away from oil and gas in heavy industries, including silicon manufacturing, is crucial in the context of the green energy transition. The US Department of Energy notes that 90-95% of the world’s solar panels rely on silicon solar cells, underscoring the significance of government-backed financial incentives like the one received by Simcoa.
During the press conference, Minister Bowen highlighted that transitioning from coal to charcoal would lead to an 89% reduction in emissions at the Kemerton site, equivalent to over 100,000 tonnes annually. Furthermore, he emphasised that the funding would secure the existing jobs at Simcoa’s Kemerton site, where 220 individuals are currently employed.
Bowen also criticised Peter Dutton and the Coalition’s energy plans, suggesting they lack provisions for Australian workers and local industry. Instead, he pointed out their focus on a $600 billion nuclear scheme that relies on a smaller economy. A recent report commissioned by the Clean Energy Council indicated that Dutton’s proposals could inflate the average household electricity bill by up to 41% by 2030.
