The NSW Government announced an additional $225 million investment aimed at expanding low-carbon manufacturing across the state, supporting local production, attracting private investment and creating skilled jobs.
The funding, part of the Minns Labor Government’s Net Zero Manufacturing Initiative, will support projects involved in producing products, materials and technologies needed for a low-carbon economy. Applications for the latest funding round opened on Tuesday.
According to the government, eligible projects may include the manufacture of renewable energy components such as wind towers, solar panels, batteries and transmission cables, as well as low-carbon products including blended cement, cross-laminated timber and biofuels.
It noted that emerging technologies such as advanced renewable energy systems, AI-driven agricultural technologies and lithium battery recycling may also be supported.
The government said the investment builds on existing grants that have supported more than 40 projects and are expected to create around 1,000 jobs across NSW.
Projects funded to date include a solar panel manufacturing facility in the Hunter Valley, a renewables manufacturing hub in Western Sydney, the expansion of super high-voltage transformer production, low-carbon housing manufacturing in Orange, and battery component technology development in the Illawarra.
NSW Minister for Climate Change and Energy Penny Sharpe said the additional funding would support further industry growth.
“Our investment in low-carbon manufacturing has already supported the creation of around 1,000 jobs, and this boost will power the next wave of industry and opportunity across NSW,” Sharpe said.
“This additional funding will help ensure NSW does not just import technology, but builds more of it locally to benefit communities and workers.”
Treasurer Daniel Mookhey said the funding was intended to strengthen local industry and employment opportunities.
“By backing local manufacturing, we are helping build the industries that will power the next generation of jobs and growth in NSW,” Mookhey said.
“We want more of the products, materials and technologies needed for a low-carbon economy to be made right here, using skilled local workers.”
The government said the latest funding round will focus on commercial and construction-ready projects capable of delivering near-term outcomes. Grant recipients will be required to match or exceed government funding, with the first round generating $1.50 in co-investment for every dollar of public funding, according to the release.
Minister for Domestic Manufacturing and Government Procurement Courtney Houssos said the initiative would support manufacturers and regional economies.
“This investment will support manufacturers to grow, create local jobs and strengthen regional economies,” Houssos said.
Industry groups also welcomed the funding. Business NSW chief executive officer Daniel Hunter said the investment would help manufacturers expand and compete in emerging industries.
“The funding will help businesses scale up, invest with confidence and make more of the products the economy will need in the decades ahead,” Hunter said.
Australian Manufacturing Workers’ Union NSW/ACT State Secretary Brad Pidgeon said the investment would support workers involved in producing renewable energy and low-carbon products.
“This investment is an important step towards creating secure, skilled jobs in the regions that have powered NSW industry for generations,” Pidgeon said.
The NSW Government said the investment forms part of its broader strategy to support emissions reduction targets of 70 per cent by 2035 and net zero emissions by 2050.
