Manufacturing News

$3.5m Green Car grant for LPG fuel system could be last on agenda

A Melbourne company that is developing a hi-tech new LPG liquid injection system for vehicles could be one of the last firms to receive a grant from the Green Car Fund, following the Government’s decision to scrap it earlier this month.

The LPG Liquajet system will boost LPG power performance to match that of petrol-powered engines, while cutting average fuel costs by up to 50%. It will lower the greenhouse gas emissions of individual vehicles by a minimum 10%.

Liquajet’s developers, Alternative Fuel Innovations (AFI), will reportedly receive a $3.54 million grant from the Australian Government’s Green Car Innovation Fund, even though the Prime Minister, Julia Gillard, announced earlier this month that the Fund would be discontinued so the Government could provide more relief for flood victims in Queensland, Victoria and regional New South Wales.

Innovation Minister Senator Kim Carr said the fund was equipping the Australian auto industry to compete in the carbon-constrained economy of the twenty-first century.

The Fund has since been scrapped, with $429 million previously earmarked for the automotive industry now being provided to flood victims.

The automotive industry is outraged at the decision to drop the Green Car Fund, claiming it will hurt Australia’s industry and hinder innovation — especially since the automotive sector is known for bringing new technologies to the manufacturing arena, including innovation in plastics, metals and glass.

The Green Car Innovation Fund previously supported projects involving light-weight mirrors, more efficient batteries and better engine systems.

Liquajet is an example of the potential in Australia’s automotive sector, which is now going to have to struggle for funding.

How will the absence of the Green Car Fund impact on Australia’s industry? Comment below or on Twitter @manmonthly.

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