GGAP funds will provide a capital contribution to qualifying cogeneration projects to be paid to the energy services company that builds and owns the generation facility, and the thermal host, once the commitment to construction is made. Cogeneration is the combined production of heat and electricity from the same fuel source. It achieves efficiencies by recycling heat that is a by-product of electricity generation, for use in other industrial processes. The greenhouse gas abatement arising from the cogeneration projects funded by GGAP will be additional to the emission savings resulting from renewable electricity generation, which is supported by a range of other greenhouse measures, such as the Commonwealth's Mandatory Renewable Energy Target. This Deed of Agreement will cover performance of the project, and will include details such as the milestones against which payments will be made, reporting requirements and delivery of the agreed abatement.
Negotiations are currently under way.
It is anticipated that further information, including project starting dates, will be available once these negotiations have been finalised.