The Government is rolling out the newly expanded $250 million Future Fuels Fund to support uptake of low and zero emissions vehicles in commercial fleets.
Businesses will be able to apply for grants under the second round of the expanded $250 million Future Fuels Fund to support the uptake of low and zero emissions vehicles over the next four years.
Up to $127.9 million will be available to support the integration of electric vehicle technologies into both light and heavy vehicle fleets, as well as to support the commercialisation of hydrogen as a transport fuel in fleets.
The program will be managed by the Australian Renewable Energy Agency (ARENA).
Through the Future Fuels and Vehicles Strategy, the Government has committed $2.1 billion to partner with industry to support the uptake of low and zero emissions vehicles. The Strategy identified commercial fleets as a priority area for support.
Minister for Industry, Energy and Emissions Reduction Angus Taylor said the program will help Australian fleet operators shift to future fuel technologies by co-investing in EV charging and hydrogen refuelling infrastructure.
“The Government backs businesses making decisions to switch to future fuel technologies where it makes sense for their fleets,” Minister Taylor said.
“Through co-funding the essential enabling infrastructure – such as charging stations or even electrical upgrades to three phase power – we will ensure Australian business can embrace technologies that will help to both save on their operation costs and reduce emissions.
“Including hydrogen refuelling as a priority area will help accelerate the decarbonisation of heavy and long-distance vehicle fleets where battery EVs may not be a viable option.
“This fleets-first approach will also create a larger market for second-hand vehicles, which will improve affordability and accessibility for other consumers.
“Our technology-led approach is in stark contrast to Labor’s policy, which will have a negligible impact on EV prices. We will not force Australians out of the vehicle they want to drive or put the costs up for those who can afford it the least.”
Assistant Minister to the Minister for Industry, Energy and Emissions Reduction Tim Wilson said that “the Government is getting Australia to carbon neutrality by 2050 and we are empowering Australian businesses and households to be part of that solution.
“Unlike Labor’s policy, our Future Fuels Strategy works to address the challenge of range anxiety and does not restrict consumer choice for lower income Australians.”
The Future Fuels and Vehicles Strategy was released in November 2021 and expanded the Future Fuels Fund to $250 million. Future funding will target public charging infrastructure, public hydrogen refuelling stations, and private household smart charger installations.
The expanded Fund is expected to result in more than $500 million of private and public co-investment, result in around 84 per cent of the Australian population having access to convenient access to fast public charging and create more than 2,600 new jobs.
Round 2 of the Future Fuels Fund opens on 19 February 2022 and further information about the program is available on the Future Fuels Fund webpage.