ARENA’s new innovation fund sets long timelines for clean fuel, metals and manufacturing projects
A new $1.5 billion funding program administered by ARENA is designed to remain open until funding is exhausted, giving NSW-based proponents flexibility to develop complex clean energy, fuels, manufacturing and metals projects at different stages of readiness.
The Australian Renewable Energy Agency (ARENA) has launched the Future Made in Australia Innovation Fund, an ongoing grant program offering up to $1.5 billion to support pre-commercial innovation, demonstration and deployment of renewable energy and low-emission technologies.
The program opened in December 2025 and will remain open until funding is fully allocated or the agency closes the program. Applications can be submitted at any time, rather than through fixed funding rounds, allowing proponents to apply when projects are technically and commercially ready.
ARENA says the fund is intended to support Australia’s transition to a net zero economy by lifting technology uptake, building domestic capability, strengthening supply chains and improving workforce skills linked to clean energy technologies.
Three priorities shaping where funding will flow
Funding under the program is split across three priority areas, reflecting different parts of the clean energy and industrial supply chain.
The largest allocation, $750 million, is reserved for Green Metals projects, covering iron, steel, alumina and aluminium. ARENA has set this priority to support early and large-scale work on low and zero-emissions metals production, including first-of-a-kind solutions and pathways to commercial operation.
A further $250 million has been allocated to Low Carbon Liquid Fuels, targeting projects such as sustainable aviation fuels and renewable diesel. These projects are expected to focus on domestic production pathways, feedstock development and integrated supply chains.
An initial tranche of $200 million has been set aside for Renewable Energy Technology Manufacturing. This stream is intended to support manufacturing innovation, advanced production techniques and the development of Australian facilities for renewable energy technologies.
Two application streams across all priorities
Across all three priorities, ARENA is using the same two-stream assessment model.
The Innovation stream is aimed at early-stage activity, including prototyping, pilots, pre-commercial demonstrations, small-scale deployments and technical studies such as feasibility and Front-End Engineering and Design work.
The Deployment stream is intended for projects moving into larger-scale activity, where technologies have already been tested at smaller scale but require demonstration under commercial or near-commercial conditions.
ARENA notes that applications may proceed through up to two stages and that proponents can engage with ARENA client managers before submitting proposals to test alignment with program guideline
Low carbon fuels focus on domestic supply chain
Under the Low Carbon Liquid Fuels priority, ARENA is directing funding toward projects that can establish domestic production capability and supply chain integration.
Eligible projects are expected to contribute to technical and commercial viability, support new production pathways or enable feedstock supply within Australia.
Manufacturing and metals reflect longer project timelines
For renewable energy manufacturing and green metals, ARENA has framed the fund to accommodate projects with longer development horizons, including those requiring pilot facilities, industrial trials or investment decision support.
Green Metals projects may include work on iron and steelmaking processes, the use of Australian iron ores in low-emissions production, or technologies supporting alumina and aluminium production. Some projects may also aim to reach a final investment decision on commercial-scale facilities.
Renewable Energy Technology manufacturing projects may involve product development, advanced manufacturing methods, or capacity expansion aimed at improving supply chain resilience.
Information webinars
An information webinar for the Green Metals priority is scheduled for 3 February 2026. Go here for details.
An information webinar for the Low Carbon Liquid Fuels priority is scheduled for 3 February 2026. Go here for details.
An information webinar for the Renewable Energy Technology priority is scheduled for 2 February 2026. Go here for details.
