Manufacturing and other energy-intensive industries in regional Australia are being targeted under a new $180 million funding round announced by the Australian Renewable Energy Agency (ARENA) to help cut emissions and modernise industrial operations.
The funding is part of the third round of ARENA’s $400 million Industrial Transformation Stream (ITS) Program, which supports regional businesses seeking to reduce emissions while contributing to Australia’s net zero commitments.
“The ITS Program is aimed at businesses that are significant energy users in regional Australia that are looking for cleaner, more energy-efficient ways to operate,” said Darren Miller, CEO of ARENA.
“We know many businesses want to reduce emissions but aren’t sure where to start. This funding is designed to help them take that step.”
ARENA said projects eligible for support could include both innovative and proven technologies, from electrifying cold storage in meat processing to recovering biogas from dairy waste. The program’s two focus areas are designed to encourage new solutions as well as accelerate uptake of existing ones.
“Whether you’re electrifying cold storage at a meat processing facility, implementing thermal energy storage technologies, or recovering biogas from dairy waste—if you are tackling emissions and energy use in an innovative and scalable way, we want to hear from you,” Mr Miller said.
ARENA noted focus areas include supporting new technologies such as alternatives to fossil fuels in high-temperature industrial processes like chemical manufacturing, and scaling up proven options such as electric heat pumps, already used in industries like food processing and paper manufacturing to provide industrial-grade heat without emissions.
To be eligible, projects must be located in regional Australia, involve significant energy use, and generate either direct (Scope 1) or indirect (Scope 2) emissions.
Applicants must also report under the National Greenhouse and Energy Reporting Scheme and demonstrate that their projects can be scaled or replicated across industries.
The ITS Program is a measure under the $1.9 billion Powering the Regions Fund, part of the federal government’s Powering Australia plan.
It contributes to national targets of reducing emissions by 43 per cent below 2005 levels by 2030 and achieving net zero by 2050.
Since the program’s launch in November 2023, ARENA said it has allocated around $220 million across the first two funding rounds to projects that are either announced or under assessment.
