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Welcome to a special edition of the CRC Association newsletter profiling the three newest Cooperative Research Centres.

We’re delighted to see the announcement today by Minister for Industry, Hon Christian Porter MP, of the successful bids for Round 22 of the program. The three new CRCs bring the total number of Cooperative Research Centres since the establishment of the program in 1992, to 233. Between them, they have lifted the Australian economy, and created new jobs, new industries, and new products. The thousands of students who have pursued industry-focused PhDs through the program over three decades are the bedrock of our innovation system, and the workforce who can successfully translate between research institutions and industry.

Congratulations to the teams who have worked so hard on their successful bids. The three new CRCs are: the Digital Finance CRC, the Marine Bioproducts CRC and the Heavy Industry Low-carbon Transition (HILT) CRC.

The high quality of all the bids is a hallmark of the program, and we also pay tribute the teams who led the Longevity CRC bid and One Basin CRC bid. Both too were outstanding bids.

The bidding process is complex and intensely competitive, and it is not uncommon for a CRC bid to go up multiple times before it succeeds. To help navigate that process, we are holding a bidding roundtable on Friday 9 July at 2:30pm AEST with a panel of experienced CRC participants, and the Department of Industry, Science and Energy and Resources. Registration details can be found here.

We are delighted to see the continued investment in the CRC program by the Australian Government. Today’s announcement represents a collective investment in innovation of $664.6 million, leveraging some $158 million in Australian Government investment with funding from both industry and universities.  It is an important program and one that continues to return benefit to all Australians.

I hope that you enjoy the profiles of the newest CRCs, and look forward to seeing you at the Roundtable.

Warm regards,  
  
Jane O'Dwyer
CEO

 
 

Tackling the hardest challenge in the low-carbon transition

The Heavy Industry Low-Carbon Transition (HILT) CRC has been awarded funding in Round 22. Professor Gus Nathan, the Research Director, and Susan Jeanes, the Chair of this CRC, talked to the CRC Association about their bid.  

They were overjoyed by the good news. 

Susan said “I was just so pleased for Gus. I see the whole CRC effort as Gus bringing together the best team. I can’t tell you how excited I was when Gus rang me.”  

The vision for the HILT CRC was developed by the University of Adelaide’s Centre for Energy Technology.  ‘It was very exciting to see this come to life through the bid process’, said Gus. 

“As we established strong industry partnerships, structure for the leadership, and prepared for the interview, we realised the importance of having a national framework that industry can invest in and collaborate under. Otherwise, they have to compete.” 

“The CRC framework allows all partners to lower the costs and risk of undertaking the low-carbon transition. Without it, the investment would beyond the capacity of any one industry group to bear alone.”  

Gus considers that the best way to establish such a collaborative framework is through the CRC Program.  

“The CRC model provides a funding mechanism that gives strong leverage, together with a mechanism for knowledge sharing.  This allows industry to justify investment at this kind of scale. 

“Furthermore, the CRC Program has a well-established history that industry is familiar with. 

“Because everyone understood more or less what a CRC is, they could have confidence that this scheme is a well-established pathway.”  

 Susan stressed the importance of the value proposition for industry. "We can show that decarbonisation is actually good business because it taps into Australia’s competitive advantage.”  

“The low-carbon transition has enormous potential to create value for Australian Heavy Industry’, Gus added. ‘Australian industry has the potential to attract a disproportional share of the estimated $5 trillion of global investment needed to transform the sector to carbon neutral by 2050, because of the coincidence of our mineral and renewable energy resources’. 

“Although it costs more to make a low carbon material, the impact of the final product is very small. For example, decarbonised cement may be almost double the cost of cement with current technology, but the cost of a green building is only a few percent extra. 

“Since the market is ready to pay for a small increase, this investment will generate new opportunities to make Australian industry more competitive, and to differentiate us from other products in international markets. 

“The only way we compete internationally is if we remain at the forefront of industry transformation.”   

A feature of the HILT CRC is that it is not just about the steel industry, or the cement industry, or the aluminium industry by themselves. It’s about finding synergies between them. These are also Australia’s three biggest heavy industries.  HILT will generate new synergies and new opportunities for cost-share between these industries.   

 “International players are watching closely to see which opportunities we will develop to make new construction materials from the by-products of other two processes. These can help in positioning the industry to be sustainable and competitive for the 2050 horizon,” said Gus. 

The CRC’s goal is to demonstrate new low carbon products of each of these industries - both for local consumption and for export. 

Research is vital to the heavy industry low-carbon transition. “The PhD program will have industry-embedded positions, so students will be able to get direct experience with industry. 

“We see this as being a really important growth industry and transformational sector for 2050 period. There’s going to be massive investment in this area for transformation to a much more sustainable system that is carbon neutral. It’s being part of the future and being part of the solution and not part of the problem.” 

“This is going to attract the next generation of top-quality researchers, scientists and students who want to be part of this transformation.” 

“Our education and training program will show researchers that there are jobs coming for them and will provide people to our industry partners who are appropriately trained.” 

The HILT CRC will establish several regional hubs throughout Australia in areas where heavy industry is based. They will establish partnerships with local communities, particularly with First Nations people, to include them in their process of transforming these regions to be more sustainable.  

“We’re looking at employment and local opportunities. Indigenous communities are a key stakeholder in these processes.”  

Susan shared some final thoughts on the future of HILT CRC 

“By 2031, I hope Australia will have made and will continue to make a material effort to decarbonise not only heavy industry but a lot of what we’re going to do can trickle down to other areas of industry. Heavy industry is the hardest, so we’re tackling that and in doing so, providing the technology and knowhow to the world.” 

The CRC Association warmly congratulates Gus and Susan and their team at the HILT CRC for their bid approval. 

 
 
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Digital Finance – a strong foundation for Australia’s digital economy 

The Digital Finance CRC is one of the newest CRCs after a successful bid in Round 22. Its CEO-elect, Dr Andreas Furche, spoke with the CRC Association about the opportunities which come with the green light. 

The CRC will ensure Australia is ready to take advantage of the next transformation of the financial markets which will see the universal digitisation of all assets so they can be traded and exchanged directly and in real-time between any individual or organisation. 

“Digitised assets have come of age” says Andreas. “This lays the groundwork for the new world of digital finance which is going to be the next generation of economic interaction.” 

“The basic technology for the creation and exchange of digital assets has been around since the mid-1990s but created relatively little impact for a while. With Blockchain coming up as another key technology to create digital assets and asset registers, people are now paying more attention to the changes this can make in financial interactions.” 

“You can create digital coins, you can create digital certificates or tokens directly representing the ownership real-world assets, and then instantly buy or sell them. You could even include graphics to increase the analogy – ownership of the token means ownership of the asset. And once you’ve got that, you can change how you invest, what you can invest in, you can also change what you sell, and how you sell it.” 

“The entire internet instantly becomes one effective, efficient global financial marketplace.” 

Andreas says that we are in a period similar to when the internet started, and it wasn’t clear what the commercial possibilities might be.  

“When some time down the track all your investments are held on digital registers, and you are buying and selling them instantly whenever you choose, you’ll come back to this time and think ‘why would have anyone doubted it could be useful?’” 

“It’ll take time, but the transition will have so much impact and we have a good opportunity to turn that into a positive direction if we do it right.” 

The CRC will play a critical role in that transition for Australia and aims to make Australia a leader in digital finance, able to bring together all the players to ensure we have the right skills, right legal framework and the right system that ensures we make the market fairer and more efficient in a real-time trading environment. “Because we will be trading in real time, we need be built the ruleset into the actual transactional technology,” says Andreas. 

“Our job is to work out, with the stakeholders and regulators, what a good ruleset is, and then ensure that we can enforce that in our part of the global marketplace.” 

Andreas says that if Australia gets that right, it sets itself up to be an attractive marketplace for generating and managing digital assets, even for assets located or originated outside Australia..  

The CRC model offered the highest chance of success. 

“To build a good model in this new area, you can’t leave it to a single industry group because it could create prejudice towards existing business models.  Participants have to be willing to challenge their own established business models, even if it initially appears to work against their interests.” 

“It is one of those topics that really needs to be a collaborative effort.” 

He says the CRC model works in a new industry where the regulatory environment will matter. “Regulators are very difficult to engage when you are a single industry group because they rightly assume that what you are trying to do is promote your own interests.” 

“But if you have a collaborative body, which has research expertise leading in the field, combined with the economic interests of a diverse group, it’s much easier to engage the regulators.” 

Andreas says that the Digital Finance CRC needs significant research because of the complexity in the system. “It’s not just a matter of applying blockchain to asset registers,” he said, “you also need to change the processes and legal statutes around it. For example, if you want to make a blockchain title for real estate and allow instant changes in ownership, it has to be legally effective and secure. This requires research in several areas, such as technology, finance and law.” 

“This research can lay the foundation to make real-time exchange just as safe as if lawyers were sitting down in an office in person for real estate settlements.” 

“So it’s much more than just putting it on a register of one digital kind or another, it’s actually about making an ecosystem around that whole space.”   

Nurturing researchers with industry experience are an important part of the ecosystem Andreas wishes to create.  

“We’ve made the PhD program a centrepiece of this CRC.” 

“A lot of our industry partners are expecting to work with PhD students as interface point to the CRC. That is important because these new concepts of how a digital marketplace might work are abstract and difficult to get across.” 

“[PhD students] need to get into organisations that work in that space, so that the organisations can start thinking differently. Instead of feeling threatened by change, organisations need to think how they can adapt and use it for their business models.” 

“You won’t get that unless you have people who are actually trained in innovative thinking and the necessary details of the new field. Our PhD students will be a blend of industry and research. We’ve got quite a high target for numbers [of PhD students]. About 150 over the ten-year lifespan.” 

“We’re also implementing  an MBA program. It’s a shortcut to get the innovative thinking around digital finance into [industry] organisations where people already hold positions. In the discussions with industry partners leading up to this, it was quite well received.” 

Andreas thought about the end of the CRC’s lifespan. Ten years is a short amount of time for the digital economy transition, but he has high expectations for the impact of the CRC.   

What we’d like to see in ten years, is that this digital finance ecosystem is working well in key pilot areas. If in ten years’ time we have a fully working ecosystem, with some meaningful assets being traded that way, then we’ll be happy.   

We welcome the Digital Finance CRC to the community and wish Andreas and his team the best for their endeavour.   

 
 
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Harnessing the ocean to grow a new industry

The Marine Bioproducts CRC (MB-CRC) was one of three successful bids in Round 22. Its Chair, John Gunn, shared his reaction on hearing the good news.

“Relief was the first reaction. Our CRC has been a long time in gestation!”

This was MB-CRC’s second attempt at a bid after not succeeding in Round 20. 

“Having had the disappointment of first stage rejection in 2018 (Round 20), we took time to review the feedback and worked closely with our industry, research and government partners to develop a focussed and much-improved bid for Round 22.  This benefited from unwavering support from Flinders University as the bid leader, and sustained commitment and effort from a leadership team comprising researchers and industry.”

John’s second reaction was excitement. He was “thrilled to be able to share the good news with all those involved with the bid, from company directors to University DVCR’s and researchers - they’re all overjoyed!”

His excitement was tangible as he explained the vision of MB-CRC.  

“The bid focusses on accelerating the development of an emerging and ambitious industry sector in Australia. Success will require all elements of the marine bioproducts supply chain to grow their capability and work together.” 

This includes primary producers, advanced manufacturers a diverse range of companies working to develop and certify products for global markets.

“The CRC has brought all those people together, and over two years they have determined their technology requirements and developed a plan for how the CRC can drive a collaborative approach to the development of an effective and efficient supply chain. We call it the MB-CRC ecosystem.” To support the producers and manufacturers in the ecosystem, the CRC partnership also includes major global marketing companies, and a dedicated investment house (Aquafund P/L) to support market penetration and company investment opportunities.   

John strongly believes in the CRC model as the best vehicle for developing the marine bioproducts industry in Australia. 

“I’ve been involved in CRCs for nearly 20 years, as a researcher, and then as a board member. A key factor in the success of the CRC Program over the last two decades has been its drive to focus R&D on industry challenges and needs. The CRC “innovation engine” obviously has  a positive impact on all industry members, but it is especially important for small and medium enterprises. Our CRC has a number of SMEs that would struggle to raise the cash to co-invest at scale with Government research agencies or Universities. And they’d likely not find it easy to develop collaborations with similar businesses. The MB-CRC solves both of these challenges for our partners. 

“There’s an analogue for the MB-CRC in previous CRC investments. In the 1980s, a number of small Australian companies began development of an aquaculture industry. This industry has benefitted immensely from three rounds of CRC funding and now contributes $1.4 Billion a year to the Australian economy.

The MB-CRC will also deliver significant benefit to the Australian economy. The CRC Program Impact Modelling tool predicts it will generate $8.6 billion in direct economic benefits and 26,470 direct and indirect jobs through to 2035. Many of our industry partners view this as a conservative effort, and we hope they are correct! 

“With demand for marine bioproducts, include nutraceuticals, omega 3 oils, cosmetics, plant-based proteins, agrochemicals and bioplastics growing rapidly, the global market for these commodities is projected to be worth $780 billion by 2035”.  

“No doubt global competition will be stiff, but Australia’s natural advantages and advanced R&D sector provide confidence that we can be successful in garnering a sizeable share.  
Australia's vast marine estate has supported food production from commercial fisheries for more than a century, with aquaculture emerging as a major industry in the last thirty years. Until recently however, we have not capitalized on the huge potential outside of food production from the broad range of other species in our uniquely biodiverse, clean and green coastal waters.    

“The MB-CRC is set to revolutionize the way we utilize these rich natural marine assets. The CRC’s innovative R&D programs will focus on production of new sources of marine biomass such as seaweeds, marine micro-algae and filter feeding animals and the use of advanced manufacturing technologies and processes to produce a suite of novel bioproducts. “

A special focus of the MB-CRC will be involvement and capability development of First Nations Sea country people, on whose country the primary products for this industry will be grown.  

“Our board will include a well-qualified First Nations community member and our innovative education and training program, which ranges from VET training through to university and advanced education, will included dedicated resources and programs for First Nations people.  

The CRC Association congratulates John Gunn and the team at the Marine Bioproducts CRC for their bid success. 

 
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CRC Bidding Roundtable

The Cooperative Research Centers Association in collaboration with the Department of Industry, Science, Energy and Resources will host a roundtable session on CRC bidding to coincide with the opening of Round 23 of the CRC Program.

In this roundtable, you will hear from experienced participants in CRCs, the CRC Association, and the CRC Program team on what makes a competitive bid, how to address the selection criteria and common pitfalls.

The session will take place from 2:30pm to 3:30pm on Friday 9 July 2021 via zoom. The session is free, but you must register.

Speakers:

  • Jane O’Dwyer, CEO, CRC Association
  • Hon. Kate Lundy, Acting Chair, Cyber Security CRC
  • Dr Guy Boggs, CEO, Transformations in Mining Economies CRC
  • Dr Liz Barbour, CEO, Honeybee Products CRC
  • Mr Chris Gonzales, Manager, CRC Grants, Department of Industry, Science, Energy and Resources
  • Ms Nicole Cortese, Assistant Manager, Department of Industry, Science, Energy and Resources
 
Register here

Three New Cooperative Research Centres Supercharge Australian Innovation

The Cooperative Research Centres Association today welcomed the announcement by the Minister for Industry, Science and Technology, the Hon Christian Porter, of three new Cooperative Research Centres.
The new centres, Digital Finance CRC, Heavy Industry Low Carbon Transition (HILT) CRC and Marine Bioproducts CRC, have been funded under Round 22 of the Cooperative Research Centres Program, which marks its 30th Anniversary this year.
 
They represent a collective investment of $664.6 million, leveraging some $158 million Australian Government investment with funding from both industry and universities.
 
“Industry-led cooperative research enabled through the Cooperative Research Centres Program is an Australian success story, translating research into action,” said CRC Association CEO Jane O’Dwyer.
 
“The program has a 30-year track record of bringing together industry, research institutions and government to collaborate in a way that delivers results.
 
”We know that for every dollar invested by government in collaborative research through the program, some three times the value is returned, generating more than $14 billion in direct economic benefits to the nation from CRC produced technologies, products and processes since the program was founded.
 
“This has translated into new Australian industries, new Australian businesses and new Australian jobs,” she said.
 
“A huge congratulations must go to our newest CRC’s. The field was incredibly strong, and all five of the bids that went through to the final round were excellent.
 
“Our newest CRCs give Australia a  boost in tackling some of the most  crucial transitions to a low carbon future, growing new marine bioproducts industries and the digital transformation of financial markets. They represent the absolute best of research and industry working together.
 
“They will supercharge Australian innovation and create new opportunities and jobs for Australians.”
 
More information on the CRC Program and successful applicants is available at www.business.gov.au/crc
 
About The Cooperative Research Association (CRC Association)

Established in 1994, the CRC Association advocates to enhance Australia’s industrial, commercial, and economic growth through collaborative research and innovation. The CRC Association represents the cooperative research community in Australia including CRCs, CRC-Ps, post CRC entities, universities, and firms involved in cooperative research.

 
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