The Australian Renewable Energy Agency (ARENA) has announced that applications are now open for Round 3 of its $400 million Industrial Transformation Stream (ITS) program, aimed at supporting industrial decarbonisation projects across regional Australia.
According to ARENA, the Industrial Transformation Stream provides funding for a range of solutions designed to reduce emissions, including electrification, energy efficiency, low-emissions processing, and fuel switching.
The agency said enabling technologies such as energy storage, demand management, and critical infrastructure that support onsite decarbonisation may also be eligible for funding consideration.
The program is designed to assist industrial facilities in regional areas to cut emissions in line with Australia’s 2030 emissions reduction goals and transition to net zero by 2050.
ARENA stated that the ITS also seeks to improve the readiness of renewable and energy efficiency technologies, encourage collaboration and knowledge sharing across industry sectors, and support workforce upskilling in new decarbonisation activities.
The agency noted that Round 3, which opened in September 2025, allocates the remaining $180 million of the ITS budget and will remain open until all grant funding is awarded.
The two focus areas for the current round are “Innovation in industrial decarbonisation” and “Advancing commercial deployment.”
ARENA noted that eligible projects can range from feasibility studies and front-end engineering and design (FEED) to trials, demonstrations, and deployment activities.
Projects combining multiple stages, such as both feasibility and deployment, may also be considered under the program.
The ITS operates through a two-stage assessment process involving an expression of interest followed by a full application.
Only projects that meet the eligibility requirements outlined in the ITS Program Guidelines and fall within ARENA’s funding mandate will be considered.
ARENA stated that previous rounds of the Industrial Transformation Stream have already committed $150 million in Round 1, which opened in November 2023 and closed in March 2025, and $70 million in Round 2, which opened in March 2025 and closed in July 2025.
ARENA encouraged interested applicants to review the program guidelines and reach out through its Funding Advice form on ARENANet for further discussion about potential projects.
