A MONARTO manufacturer will receive up to $424,000 of Federal Government funding - raised through the carbon tax - as a reward for becoming more energy efficient.
Timber processing firm SA Pine, formerly Recut Industries, will use the retrospective grant funding to reduce its emissions and cut power bills.
Company director Gary Tucker said the grant was welcome recognition for work SA Pine had already begun.
"We decided it was economical for us to put a wood-fired boiler in rather than LPG," he said.
"LP gas out here is pretty expensive, and it only takes four tonnes of chips to get the equivalent heat output of one tonne of gas.
"Pine chips are carbon neutral, so we'll save 17 kilotons of carbon over 17 years."
Federal Industry and Innovation Minister Greg Combet and South Australian Senator Anne McEwen ann-ounced the grant funding on March 26.
Senator McEwen said Recut Industries hoped to reduce its power bills by up to $529,000 and its energy intensity by 92 per cent.
"This will be achieved by substituting liquified petroleum gas with sawmill waste to fuel its timber drying process through the purchase and installation of a sawmill waste storage unit, sawmill waste-fuelled boiler and drying kiln," she said.
"These changes are exactly the sort of practical improvements that the Clean Technology investment programs were design-ed to support," she said.
The company's new boiler will be commissioned this week and the kilns in the next few days.
The Federal Govern-ment will spend $1 billion helping manufacturers reduce their pollution through the Clean Technology Investment Program and Clean Technology Food and Foundries Investment Program.