Time running out for manufacturers seeking Net Zero funding
NSW manufacturers have just weeks remaining to apply for up to $225 million in Net Zero Manufacturing Initiative funding, with the state encouraging businesses developing renewable energy infrastructure, low-carbon products and clean technologies to submit applications before grant rounds close.
Businesses seeking support through the NSW Government's $225 million Net Zero Manufacturing Initiative have entered the final application period, with grants closing over the coming weeks across three funding streams designed to expand manufacturing capacity for renewable energy infrastructure, low-carbon products and clean technologies.
The latest funding round opened earlier this year and is aimed at businesses manufacturing products needed for a lower-emissions economy in NSW. The program is intended to encourage private investment, increase local manufacturing capability and support skilled employment.
The initiative follows an earlier funding round that supported more than 40 projects across NSW and was credited by the NSW Government with creating around 1,000 jobs.
Projects funded previously included a solar panel manufacturing facility in the Hunter Valley, a renewable manufacturing hub in Western Sydney, production of super high voltage transformers for Renewable Energy Zones, expanded low-carbon housing manufacturing in Orange and battery component technology development in the Illawarra.
Three grant streams available
Funding is available through three separate grant streams.
The Clean Technology Innovation stream offers $25 million, with grants of up to $5 million for pilot and demonstration projects that are moving established technologies towards commercial deployment.
A further $100 million has been allocated to Low Carbon Product Manufacturing, supporting commercial-scale production of products including blended cement, cross-laminated timber and biofuels.
Another $100 million is available through the Renewable Manufacturing stream for projects producing equipment such as wind towers, solar panels, batteries and transmission infrastructure.
For both manufacturing streams, grants of up to $30 million are available for individual projects, covering up to half of eligible project costs. Successful applicants must match or exceed the grant value with private investment.
According to the NSW Government, the first funding round attracted about $1.50 in private co-investment for every dollar provided through the program.
Commercial deployment remains the priority
The current funding round gives priority to projects that are ready to move into construction or commercial production.
Minister for Climate Change and Energy Penny Sharpe said the initiative had already delivered employment outcomes and would continue supporting manufacturing across the state.
"Our investment in low-carbon manufacturing has already supported the creation of around 1,000 jobs, and this boost will power the next wave of industry and opportunity across NSW."
"This additional funding will help ensure NSW does not just import technology, but builds more of it locally to benefit communities and workers."
Business NSW Chief Executive Officer Daniel Hunter said the funding would assist manufacturers looking to expand production and pursue new industrial opportunities.
Australian Manufacturing Workers' Union NSW/ACT State Secretary Brad Pidgeon said:
"NSW manufacturing workers have the skills and experience to build the products needed for the future, from renewable energy components to low-carbon building materials."
Final deadlines approaching
The NSW Department of Climate Change, Energy, the Environment and Water is reminding businesses that applications are closing soon.
Applications for the Low Carbon Product Manufacturing Grant and Renewable Manufacturing Grant close at 12:00 pm (AEST) on 25 August 2026, while applications for the Clean Technology Innovation Grant close at 12:00 pm (AEST) on 8 September 2026.
The department has also made available a recorded webinar featuring members of the grant assessment team and previous funding recipients, along with updated frequently asked questions for each grant stream to assist applicants in preparing submissions.
With projects expected to be commercially ready and supported by private investment, the remaining application period gives NSW manufacturers an opportunity to secure funding for facilities and technologies intended to expand local production capacity across renewable energy, low-carbon products and clean technology industries.
