The Australian Renewable Energy Agency (ARENA) has outlined details of its Powering the Regions Industrial Transformation Stream (ITS), a funding program designed to support industrial decarbonisation projects in regional Australia.
According to a media release from ARENA, the ITS is part of the Powering the Regions Fund, a broader Australian Government initiative aimed at reducing emissions and advancing energy transition goals.
The program was allocated up to $400 million in the 2023–24 federal budget to back a range of projects that lower industrial greenhouse gas emissions, improve energy efficiency, or support electrification and low-emissions processing across regional industrial facilities.
ARENA said the ITS has operated through multiple funding rounds since it opened in November 2023. The first two rounds – worth $150 million and $70 million respectively – have now closed.
The initial focus was on decarbonisation of industrial processes, while the second round included emphasis on innovation in industrial decarbonisation and advancing commercial deployment of technologies and solutions.
The program is now accepting applications under Round 3, which opened in September 2025 with $180 million of funding still available.
ARENA said this round remains open on an ongoing basis and will continue to accept submissions until the ITS grant funding is exhausted. Projects at various stages, from feasibility studies and engineering design to trials, demonstrations and deployment, may be considered.
According to ARENA, the ITS aims to help participating facilities reduce scope 1 and scope 2 emissions – direct and indirect emissions associated with fuel use and purchased electricity – while also improving technology readiness and encouraging knowledge sharing across industry and regions.
The agency said eligible projects could involve solutions such as electrification, energy efficiency improvements, fuel switching and enabling technologies like energy storage and demand management.
Applicants seeking funding are required to submit an initial expression of interest, followed by a full application if invited. ARENA said it will only fund low-emissions projects that meet its eligibility criteria as defined in the ITS program guidelines.
ARENA’s information materials state that the ITS is intended to support industrial facilities in regional areas as they work to align with Australia’s emissions reduction goals for 2030 and net-zero by 2050.
