Australian small and medium-sized manufacturing businesses will be able to access a new $10 million co-investment fund aimed at supporting emissions reduction, improving energy efficiency and transitioning away from fossil fuel-based industrial processes, according to the Advanced Manufacturing Growth Centre (AMGC).
Funded by the Australian Renewable Energy Agency (ARENA) through its Advancing Renewables Program and delivered by AMGC, the SME Industrial Decarbonisation Fund will provide matched funding for projects that modernise manufacturing operations while reducing emissions.
In a news release, AMGC said the fund is intended to support manufacturers implementing electrification and other low-emissions technologies, delivering projects with measurable emissions reductions and commercial potential, sharing lessons with the broader industry, and building workforce capability to operate new equipment and meet certification, safety and compliance requirements.
Priority will be given to projects in three manufacturing areas identified as having significant decarbonisation potential: surface treatment, including powder coating and galvanising; process steam applications such as sterilisation, drying and cooking; and metals processing, including extraction, fabrication, refinement and transformation.
ARENA Chief Executive Officer Darren Miller said industrial decarbonisation would play a key role in Australia’s transition to net zero 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.”
Eligible Australian-owned manufacturers employing fewer than 200 staff can apply for co-investment for projects valued between $400,000 and $1 million, with successful applicants required to contribute 50 per cent of eligible project costs on a dollar-for-dollar basis.
AMGC Managing Director Dr Jens Goennemann said the initiative was designed to strengthen both the competitiveness and sustainability of Australia’s manufacturing sector.
“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,” Dr Goennemann said.
“To advance Australia’s industrial capability, all areas of manufacturing must be engaged. This Fund supports skills development, operational transition to lower-emissions, and sharing knowledge to accelerate industry wide progress.”
Applications open in July 2026 and will be assessed on a rolling basis until 31 December 2027 or until the available funding has been allocated.
According to AMGC, the organisation has facilitated more than 500 national collaborations and co-funded more than 170 manufacturing projects over the past decade.
It said these initiatives have contributed to the creation of more than 4,400 jobs and involved more than $137 million in combined industry and government investment, generating an estimated $1.72 billion in additional national revenue.
