Plans to develop a massive plant protein facility capable of producing 25,000 tonnes a year of high value plant protein extract in the Adelaide region are under threat due to the cancellation of federal government funding.
Federal shadow minister for industry Sussan Ley confirmed the government was planning to pull its $113 million contribution, made under its Manufacturing Modernisation Initiative Collaboration Stream, to the $378 million proposal, overseen by a consortium of Australian Plant Protein, AGT Foods and TFI.
The government declined to comment on the matter, but it appears it has quietly withdrawn the funding allocated to the project by the previous government last year.
There will be a domino effect from this move, with the South Australian government confirming its $65 million pledge to the project was contingent on federal funding as well.
The funding cut for the plant protein facility is part of what Ms Ley said was $442 million in federal government cuts in the manufacturing space.
"Ed Husic claims to be someone who wants to "build things in Australia", yet with every decision he makes, Australia's industrial base diminishes," she said.
A South Australian government spokesperson said it remained in discussions with the developers of the plant.
"The Government of South Australia recognises the growing global demand for high quality plant proteins and the local jobs and exports boost this industry can create," they said.
"The importance of attracting national and global investment to South Australia is also very important and discussions with the plant protein consortium are ongoing."
However, the SA government did confirm its grant would be contingent on federal support.
Federal government officials were tight-lipped as to what has caused the about-face.
"The project proposals and negotiations under the Modern Manufacturing Initiative Collaboration Stream are covered by commercial in confidence provisions as outlined in the program guidelines," said a Department of Industry spokesperson.
"In keeping with that provision, the Department is not in a position to discuss individual outcomes or specific issues relating to proposals."
APP, TFI and AGT Foods all declined to comment.
The plant concept was to have APP constructing a major plant protein extraction facility while TFI and AGT Foods were to build and operate a complementary plant-based extraction facility along with meat alternative manufacturing operations.
The APP facility, if completed, will be one of the largest of its kind in the world.
Similar to APP's existing Horsham facility the plans for the proposed plant were for APP to extract high protein isolates from pulses including faba beans and lentils.