Victorian manufacturers are shifting from gas to electric technologies, backed by a $10 million state government grant program through the Department of Energy, Environment and Climate Action.
Applications will open in September 2025, with businesses eligible for up to $2 million in funding to replace fossil fuel-powered equipment with electric alternatives.
The program aims to help food and beverage manufacturers embrace innovative technologies that reduce emissions, improve energy efficiency and enhance long-term sustainability.
According to the Department of Energy, Environment and Climate Action, the fund is designed to accelerate electrification in the sector by supporting scalable, replicable solutions that improve energy security and promote sustainable growth.
“These upgrades mean lower energy bills, less exposure to volatile gas prices and a cleaner way of operating,” the Department stated.
“They also open the door to new and emerging technologies that are better suited to the future of manufacturing.”
MainStream Aquaculture, located in Werribee, hosted the announcement of the latest funding round. The company previously received a $19,000 grant through the Victorian Energy Upgrades (VEU) Large Energy User Electrification Support program to conduct a feasibility study.
The study proposed replacing two 650kW natural gas boilers with a 550kW water-to-water heat pump, and integrating a geothermal and trade waste heat pump to enhance efficiency and reduce water usage.
If implemented, the proposed upgrade could deliver annual savings of over $110,000 with a five-year payback period.
The shift toward efficient electric systems is also expected to reduce demand on the state’s gas network, making it more reliable for industries still dependent on gas.
To support the growing demand for electric technologies, the Victorian Government is also investing $5 million in free training for plumbers, electricians, and construction workers. Training will cover the installation of heat pumps, solar system wiring, and the construction of energy-efficient, all-electric homes.
More than 6,000 workers have already completed government-funded training programs, including 5,000 electricians, 1,200 plumbers, and 1,500 building practitioners and tradespeople.
The Department of Energy, Environment and Climate Action said electrification is gathering pace in Victoria’s manufacturing sector, helping businesses cut costs, build resilience, and prepare for a more sustainable future.
More details about the Energy Innovation Fund are available at energy.vic.gov.au/grants/energy-innovation-fund.
