The NSW Government has announced an $80 million funding package to help mining and manufacturing industries reduce emissions as part of the state’s ongoing net zero transition.
In a news release, the government said the funding forms part of the new Industrial Decarbonisation Initiative, which includes two major grant programs designed to support industries in shrinking their carbon footprint and accelerating the shift to sustainable energy sources.
The $40 million Renewable Gas Production Program will co-fund up to 50 per cent of costs for commercially mature biomethane production projects.
Biomethane, made from organic waste such as food scraps and agricultural by-products, can replace natural gas in homes and businesses without changes to existing infrastructure.
Eligible projects are required to inject at least 0.1 petajoules of biomethane into the network each year by June 2030, with the aim of replacing nearly 4 per cent of the natural gas currently used by industry.
A second $40 million Low Emissions Industry Program will support NSW manufacturing and mining facilities reporting to the National Greenhouse Gas Emissions Reporting Scheme with emissions below 100,000 tonnes of CO2 per year.
Grants will fund on-site projects such as fuel switching to lower-carbon energy sources, heat pump installations, and facility retrofits or process improvements.
Jenny Merkley, Executive Director of Business and Industry Decarbonisation at the NSW Government, said the initiative would provide practical opportunities for industries to lower energy costs and reduce carbon emissions.
“Decarbonising industry is critical to reaching net zero while protecting the health of our communities and environment,” Merkley said.
“Under the new Low Emissions Industry Program, manufacturers and mining operators have real opportunities to lower energy costs, strengthen performance and implement proven solutions that reduce carbon pollution. Meanwhile, the Renewable Gas Production Program will help scale biomethane production, capturing gas that would otherwise enter the atmosphere and converting it into a cleaner fuel supply.”
The Industrial Decarbonisation Initiative aims to streamline the government’s emissions reduction grants, making it easier for businesses to apply and deliver projects. Applications for both programs are now open.
More information is available on the NSW Government energy website.
