The VACC last week issued a press release announcing it has received support from the Victorian government and the state Labor opposition for an initiative proposed jointly by the VACC and Gas Energy Australia (GEA).
That initiative would see the regional city of Geelong become a 'Centre of Excellence' for the automotive LPG industry. David Hodgett, the government's Minister for Manufacturing, has volunteered a $55,000 grant to partly fund a demand study into the feasibility of an LPG vehicle production plant in Geelong.
Hodgett's commitment followed a similar offer from Shadow Treasurer Tim Pallas. As the VACC acknowledges in its press release, the commitment to the demand study will be honoured, irrespective of which party wins power at the state election this coming weekend.
"This is an important milestone," David Purchase (pictured), VACC Executive Director, was quoted saying in the press release.
"The demand study will establish if the LPG vehicle production proposal has legs. VACC, GEA and the next State Government will each contribute financially to the study and it will determine, one way or another, if the plan is sustainable."
Geelong is facing a bleak economic future once Ford ceases to build six-cylinder engines for its Falcon and Territory models in 2016, but the regional city has also been knocked for a loop by announcements other production facilities outside the automotive industry would close, such as the Alcoa smelter, for instance.
The LPG plan would see hundreds of new jobs created to displace those lost. Up to 500 workers formerly employed by the automotive industry (including many in Adelaide, where Holden will close its manufacturing plant at Elizabeth from 2017) would effectively remanufacture vehicles to run on LPG, which would contribute to the country's energy security.
Australia has massive LPG reserves, and increased reliance on the fuel for automotive use would reduce Australia's dependency on petrol and diesel fuel imported from OPEC nations. It would also help lower the country's greenhouse gas emissions.
In addition to production facilities in Geelong and Adelaide, the plan calls for a 'Centre of Excellence' resource to be established in Geelong, where R&D, training, accreditation and product certification would be carried out.