Energy and renewables in business

Challenges and innovative solutions shaping the energy landscape for large-scale manufacturers were discussed at Committee for Echuca Moama’s Thursday breakfast.

Hosted at Echuca Workers, Jason Limbrick, CEO of Australian Consolidated Milk (ACM), spoke about several challenges facing businesses.

Jason began by acknowledging the Victorian Government’s commitment to achieving 75% renewable energy by 2035, a target that demanded significant transformation across industries.

‘‘There’s a lot of work to do to reach this target,” he said, “and commercial businesses are going to be caught up in this.”

One of the key challenges he highlighted was the fragility of the current energy grid, which struggled to accommodate energy being returned from renewable sources. Ironically, even when businesses like ACM reduce their reliance on the grid — thanks to innovations like their new biodigester — the system can become unstable, leading to unreliable power supply or outages.

Jason said the decision to look at more sustainable energy solutions began during the economic shock of the COVID-19 pandemic, which exposed vulnerabilities in energy pricing.

‘’Gas and electricity prices doubled and even tripled for some businesses over a very short space of time,” he said, adding that today’s geopolitical instability continued to undermine market confidence.

Faced with these challenges, ACM took the bold step of looking to create a circular economy and reduce energy costs. Partnering with Griffith University, the company developed a waste-to-energy biodigester that transforms organic waste into biogas and fertiliser. The biodigester now supplies about half of the factory’s electricity, marking a significant step toward sustainability.

However, the road to renewable integration was not without hurdles, including the complex approval process with Powercor and the need for board-level financial justification.

“The numbers have to make sense, with a return on investment,” he emphasised.

In addition to internal solutions, Jason encouraged businesses to engage with local renewable options as a way to reduce power bills and support community-based renewable initiatives.

“Look to engage with people near you, for example solar farms,’’ he said. ‘‘I would also advise doing an energy audit. Find out what’s using energy and when, are you using it in the day or night? There are opportunities to create your own solutions.’’

Discussion also led to the risk of Australia losing its manufacturing base if the energy transition was not managed carefully.

‘‘It’s difficult to compete with countries that are using nuclear or those that don’t have sustainable plans in place,” he said, highlighting the competitive disadvantage faced by Australian manufacturers under current conditions.

Adding to the urgency for businesses to embrace sustainability, the Australian Securities and Investments Commission (ASIC) has introduced mandatory climate reporting requirements, which will be phased in over the next three years:

·                  Group 1 entities — large businesses and financial institutions — must begin preparing annual sustainability reports for financial years starting on or after 1 January 2025.

·                  Group 2 entities will follow for financial years commencing on or after 1 July 2026.

·                  Group 3 entities will be required to report from 1 July 2027.

These reports must include detailed disclosures on climate-related governance, strategy, risk management, and performance metrics, in line with new standards issued by the Australian Accounting Standards Board (AASB) and the Auditing and Assurance Standards Board (AUASB).

ACM’s story is a powerful example of how businesses can lead the way in renewable energy adoption, even amid regulatory and economical challenges. As Victoria pushes toward its 2035 goal and ASIC’s climate reporting regime takes hold, companies like ACM are proving that innovation and resilience can pave the way to a cleaner, more sustainable future.