$10m funding to help manufacturers decarbonise industrial process

The Australian Renewable Energy Agency (ARENA) is supporting the Advanced Manufacturing Growth Centre (AMGC) to help small to medium-sized Australian manufacturers decarbonise.

The $10 million co-investment fund targets electrification of industrial processes currently reliant on fossil fuels, including use cases such as metals processing, surface treatment and process steam.

The funding will help manufacturers to reduce emissions, improve energy efficiency and transition away from fossil-fuelled based industrial processes. The fund will support manufacturers to:

• Implement electrification and other low-emissions technologies in place of existing fossil fuel processes.
• Deliver projects with clear pathways to commercial viability and measurable emissions reductions.
• Share knowledge and lessons learned to help scale successful approaches across the wider manufacturing industry.
• Build workforce capability to operate new equipment and meet certification, safety and compliance requirements.

The fund prioritises three areas where Australian manufacturers have decarbonisation potential:

1. Surface treatment: including powder coating, galvanising and metallic finishing.
2. Process steam: including sterilisation, drying and cooking.
3. Metals processing: including extraction, fabrication, refinement and transformation.

ARENA Chief Executive Officer Darren Miller said decarbonising manufacturing is essential to Australia’s energy transition and that targeted support can help smaller businesses take practical steps to cut emissions.

“Australia cannot reach net zero without transforming how we make the materials and goods that underpin our economy,” Miller said.

“This funding extends ARENA’s work in industrial decarbonisation to reach small and medium-sized manufacturers, helping them deploy practical solutions and demonstrate approaches that can be replicated across the industry.”

Who’s eligible?

“This important initiative supports manufacturers across a range of industrial sectors, from food and beverage to surface finishing and metal processing, to improve efficiency and future-proof their operations,” said AMGC Managing Director Dr Jens Goennemann.

Eligible companies can apply for co-investment for projects valued between $400,000 and $1 million with lead manufacturers contributing 50% of eligible project costs on a dollar-for-dollar basis.

To qualify, manufacturers must currently employ fewer than 200 staff, be Australian-owned and operate in Australia.

Applications are now open until 31 December 2027 or until funding is fully allocated.

For more details, visit www.amgc.org.au/decarbonisation-fund.

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