QEM (ASX:QEM) to benefit from Queensland's $2b renewable energy subsidy

Company News

by Michael Luu

The State Government of Queensland has announced a $2 billion stimulus package to support employment in the renewable energy and hydrogen sector, while also accelerating the region’s pursuit of sustainability objectives.

The Queensland Renewable Energy and Hydrogen Jobs Fund has upgraded its original allowance by $1.5 billion and operates as part of the $3.34 billion Queensland Jobs Fund.

Queensland Premier Annastacia Palaszczuk emphasised the fund’s significance “This $2 billion Queensland Renewable Energy and Hydrogen Jobs Fund is all about more jobs and more industries”.

The increase in funding is considered a shot in the arm for the local renewable resources sector, which aims to capitalise on the surge in demand for minerals required to make eco-friendly vehicles, batteries and equipment.

The subsidy is also a driver for the state authorities’ mission of reaching their 50 per cent renewable energy target.

Queensland’s north-west region boasts a wide range of resources linked to clean energy technologies such as cobalt, copper, scandium, nickel, vanadium, bauxite and alumina.

Queensland Exploration Council chair Kim Wainwright has highlighted QEM as a direct beneficiary of the stimulus scheme, as the company’s Julia Creek project in Queensland hosts one of the world's largest vanadium deposits.

Wainwright said, “Companies like Multicom and QEM (ASX:QEM) are targeting vanadium in the Julia Creek area and will benefit from a common user demonstration processing plant”.

The subsidy focused on renewable resources shows the state government’s initiative in “supporting the resources sector, from exploration right through to manufacturing”.

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