Manufacturers invited to modernise equipment through new co-investment fund
A new $10 million co investment program is inviting Australian small and medium sized manufacturers to replace fossil fuel based industrial processes with lower emissions alternatives, while supporting equipment upgrades, workforce training and compliance as part of commercially viable projects.
Australian small and medium sized manufacturers are being invited to apply for a new $10 million co investment program that supports practical emissions reduction projects while helping businesses modernise industrial operations.
Funded by the Australian Renewable Energy Agency (ARENA) through its Advancing Renewables Program and delivered by the Advanced Manufacturing Growth Centre (AMGC), the SME Industrial Decarbonisation Fund provides matched funding for projects that replace fossil fuel powered industrial processes with lower emissions alternatives.
Applications are now open and will be assessed on a continuous basis until 31 December 2027, or until all funding has been allocated.
Targeting industrial processes
The fund supports businesses to upgrade or replace equipment and manufacturing processes, introduce electrification and other lower emissions technologies, train employees to operate new equipment, meet certification and compliance requirements, and share successful project outcomes with the wider manufacturing sector.
Eligible projects must demonstrate a pathway to commercial viability while delivering measurable reductions in direct greenhouse gas emissions.
The program focuses on three manufacturing activities where practical emissions reductions can be achieved. These are surface treatment, including powder coating, galvanising and metallic finishing, process steam applications such as sterilisation, drying and cooking, and metals processing covering fabrication, refinement, transformation and extraction.
Eligibility and funding
Australian owned manufacturers employing fewer than 200 people can apply for projects valued between $400,000 and $1 million. Successful applicants must contribute 50 per cent of eligible project costs through matched funding.
ARENA Chief Executive Officer Darren Miller said manufacturing would play an important role in Australia's transition to net zero, stating, "Australia cannot reach net zero without transforming how we make the materials and goods that underpin our economy."
Mr Miller said the funding extends ARENA's industrial decarbonisation work to smaller manufacturers by helping them deploy practical solutions and demonstrate approaches that can be replicated across the industry.
Supporting capability across manufacturing
AMGC Managing Director Dr Jens Goennemann said the initiative would support manufacturers operating across sectors including food and beverage, surface finishing and metals processing.
Dr Goennemann said, "To advance Australia’s industrial capability, all areas of manufacturing must be engaged. This Fund supports skills development, operational transition to lower-emissions, and sharing knowledge to accelerate industry wide progress."
Over the past decade, AMGC has facilitated more than 500 national collaborations and co funded more than 170 manufacturing projects. Together, industry and government have invested more than $137 million through those projects, generating an estimated $1.72 billion in additional national revenue and creating more than 4,400 jobs.
For manufacturers considering investment in new production equipment, electrification or process improvements, the fund provides an opportunity to undertake projects that reduce emissions while strengthening operational capability and preparing businesses for future manufacturing requirements.
Learn more before applying
Manufacturers considering an application will also have access to further guidance through an AMGC information webinar dedicated to the SME Industrial Decarbonisation Fund to be held online on July 26.
The online session will explain how the program operates, outline the assessment process and provide a walkthrough of the Good Grants application platform. It will also cover the available support materials, project financials, milestone payment arrangements and practical information to help businesses prepare their applications.
The webinar will be recorded and made available on the AMGC website, allowing manufacturers to access the information at a time that suits their business. To register for the webinar, go here.
