Australia’s only silicon manufacturer awarded $39.8 million grant

Australia’s only silicon manufacturer, Simcoa Operations, will receive a $39.8 million grant under the federal government’s Powering the Regions Fund to expand the use of charcoal and end the use of coal in its production.

According to a statement from energy minister Chris Bowen on Thursday, the move will reduce Simcoa’s greenhouse emissions by 89 per cent.

The grant will also help maintain silicon production in Australia, support 220 direct jobs and “create several new roles”, said Bowen.

“This investment will help industry stay in Australia to support a future of clean energy jobs and low-emissions products made right here,” he added.

According to its website, Simcoa (Silicon Metal Company of Australia) exports about 85 per cent of the 52,000 tonnes per annum of very high purity silicon made at its Wellesley site. It also makes about 13,000 tonnes of silica fume.

It uses low ash charcoal, coal and high purity quartzite in production.

Simcoa had previously cited a lack of access to locally-grown jarrah hardwood – used as a source for its charcoal – as something that could mean it ended up using more coal.

“Normally we require around 140,000 tonnes of hardwood timber in the manufacturing process. This year we’ve received about half that,” vice president David Miles told the ABC in 2022. 

The plant was opened in March 1990.

The grant is the third awarded under the PRF’s $600 million Safeguard Transformation Stream.

Picture: credit Simcoa