What grants are currently available under the Net Zero Manufacturing Initiative?

There are 3 grants under round 2 of the Net Zero Manufacturing Initiative. 

You can watch our recorded webinar held on 22 June 2026 to learn more about each grant including eligibility and the application process.

What if my product is not included in the eligible product category list?

The products listed under each eligible category in section 4.3 of our funding guidelines are illustrative. You must demonstrate how your product aligns to one of the categories and how it meets the eligibility criteria listed in the guidelines. 

We encourage you to read the funding guidelines and supplementary guidance documents for each grant on our website before applying.  

Can I apply for more than one grant under round 2 of the Net Zero Manufacturing Initiative for my project?

Yes. However, if you are successful, your project will only receive funding from one of the grant streams. 

Can I apply for more than one project under this grant?

Yes, however each project must be unique. 

Can I still apply for round 2 grants if I have previously applied for round 1 grants?

Yes. You can apply with new or different projects for round 2 grants. However, funding for the same project and costs which have already received NSW Government funding is not eligible.

Can one application cover multiple sites in NSW for this grant?

No. You must submit one application per project site to be eligible for funding. 

If I have 2 projects in NSW with a combined total cost of $10 million, is this eligible under one application?

No. You can only submit one application per project. The minimum funding amount you can request for this grant is $5 million and must only cover up to 50% of your total eligible project costs. 

If a project received funding in a previous round, can a similar project through a different applicant still be considered eligible for round 2?

Yes. Similar projects may be eligible for funding, but the same project can’t receive funding twice. To be eligible for this grant, you must demonstrate that your new manufacturing facility or expansion of an existing facility will produce an eligible product. Projects within all product categories are welcomed.

Can I apply for a funding amount outside of what’s listed for this grant?

No. Eligible projects must request grant funding between $5 million to $30 million.  

When do applications open and close for this grant?

Applications opened on 2 June 2026 and closed on 25 August 2026 at 12:00 pm (AEST).

How can I ask questions about the funding or my application?

We encourage you to read our funding guidelines and supplementary guidance first. These contain important details about the eligibility and assessment criteria and what information you require, including supporting documents, to complete your application.

If you still have questions, email us at: [email protected]

Am I eligible if I have already received other grants from the NSW Government for my project?

No. You are not eligible if your project has already received NSW Government funding for the same outputs and outcomes, or any part of the same project. Your eligibility won’t be affected if you received grant funding for a different project.  

My project is not located in NSW. Am I eligible?

No. Projects must be in NSW to be eligible for funding.

Can the department assist me with my application?

No. As all grants under the Net Zero Manufacturing Initiative are assessed through a competitive process, the department must adhere to strict probity principles and therefore cannot assist you with your application directly. 

Do partner organisations need to transfer their funding contributions to the applicant before those funds can be spent?

No. However, you are responsible for maintaining a record and reporting all project expenditure.

If the applicant changes, do I need to inform the Department of Climate Change, Energy, the Environment and Water (the department)?

Yes. Please email us as soon as possible at [email protected] with your application number and details about the proposed changes to the applicant.

All communication is done through the GMS, so please ensure that your contact information is kept up to date.

Proposed changes to the applicant (during the application process or during your project) must be approved by the department in writing and updated in the GMS.

If you have any questions, you can us at: [email protected]

Note: The department reserves the right to determine that the proposed applicant is ineligible if they cannot satisfy the eligibility criteria.

Can applicants use future revenue streams to meet their financial contribution requirements?

Yes. If you can confirm committed financial contributions at the time of submission and are successful, you will be awarded a grant.

If you are using future revenue streams to meet your financial contribution requirements, you must provide evidence that those revenue streams will be available to justify their inclusion (for example, an existing customer contract).

When assessing grant applications, we will consider financial contributions that are already available or committed by you or your partner organisation(s) more favourably than future revenue streams. 

Can I include funding received from other Commonwealth programs as part of my co-contribution amount?

Yes. Funding received by other (non-NSW) government bodies can be included as part of your cash contributions. You must also disclose all Australian Government and/or state, territory grants applied for in relation to your project. Read section 3 in our supplementary guidance for more details. 

Costs already funded by other sources of local, state or Commonwealth government funding are not eligible (i.e. no double-funding of the same expenditure). 

How can I demonstrate that my project would not continue without government support as well as demonstrate the project’s feasibility?

You must submit evidence that clearly justifies that your project will not proceed without government support, such as a letter from a project sponsor. You are also required to demonstrate, with evidence, the commercial and financial feasibility of your product, and this includes details of the market viability of your proposed product. 

Are there any size or turnover requirements for a business to be eligible?

No, this grant does not include eligibility criteria relating to business size or turnover. However, there is merit criteria which considers factors such as:

  • the business’s resourcing and capability to deliver the proposed project, and
  • its experience in delivering projects of a similar size or scope.

Read section 4 and 5 in our funding guidelines for more details about eligible applicants and assessment criteria. 

Will I be requested to provide additional details if they are needed to assess my application?

Yes. Where needed to confirm your eligibility or for merit scoring, we might request clarification or supporting documentation through the grant management system (GMS). 

How do I confirm if my application has been received?

You will be notified by email via the grant management system (GMS) that your application has been received. 

If you do not receive an email within 2 working days, email us at: [email protected]

My application and registration will include personal information. How do you manage this information?

We have legal obligations under the Privacy and Personal Information Protection Act 1998 (NSW) in relation to the collection, storage, access, use and disclosure of personal information. 

We will provide a privacy statement in your application form that details how your information will be managed in accordance with privacy law.

If my application is unsuccessful, can I seek feedback?

Yes. After we’ve notified you of the outcome of your application, you can seek feedback by emailing us with your application number at [email protected] 

Feedback is solely at the discretion of the department. 

What is a low carbon product?

A low carbon product has lower lifetime emissions (carbon dioxide equivalent, or CO2e), compared to similar products currently dominant in the market.  

You must be able to demonstrate that your product has emissions reduction potential consistent with established emissions assessment methodologies. 

Read section 4, merit criteria 3.1, in our supplementary guidance for more details.

What is this grant for?

This grant provides funding for capital costs to construct a manufacturing facility or expand an existing facility.

What types of projects will be funded under this grant?

We are funding projects to establish new or expanded manufacturing facilities. These facilities must be in NSW and manufacture low carbon products at commercial scale, from the following categories: 

  • building materials
  • ‘green’ chemicals
  • biofuels derived from biomass, including biodiesel and sustainable aviation fuel
  • power fuels produced with renewable energy
  • inputs needed for agricultural production.

Read section 3, eligibility criteria 2.1 in our supplementary guidance for more details about project eligibility. 
 

What is manufacturing, and how is it distinguished from recycling?

Manufacturing means the industrial transformation of materials into new products, consistent with ANZSIC Division C – Manufacturing. It involves processes such as chemical synthesis, refining, blending, smelting, moulding, or assembly to create a new product with new characteristics or performance.

Recycling, under ANZSIC 2922 – Materials Recovery, refers to collecting, separating, shredding/crushing, cleaning, filtering, or reprocessing waste materials so they can be reused or sold as recovered commodities. The primary purpose is resource recovery, not the creation of a new manufactured product.

In short, manufacturing creates a new product; recycling restores or recovers an existing material.

How is the use of recycled materials considered under this grant?

The use of recycled materials during manufacturing is considered during assessment under merit criteria 3.4 in our supplementary guidance. We assess your project’s resource efficiency and integration of circularity principles.

What is the minimum contribution requirement?

You must provide a cash contribution of at least 50% of the eligible project cost from non-NSW Government sources. In-kind (non-financial) contributions are not counted towards the 50% contribution of the eligible project costs. 

Do I require match funding for this grant? What evidence do I require for private investment to be recognised as match funding and at what stage must I fully secure this?

Yes. You must demonstrate cash contributions of at least 50% of the total eligible project costs and have credible funding arrangements in place when you submit your application.

We accept term sheets for debt or equity, letters of support and other evidence of committed finance from a private investment source. Read our supplementary guidance for more information on the required evidence you must provide.

If successful, you will need to demonstrate your security of cash contributions when you sign a funding deed.

Do you allow in-kind contributions? If so, how much of the 50% co-contribution can be in-kind?

No. In-kind contributions do not count towards your 50% contribution requirement. 

What does ‘costs incurred’ mean?

Costs incurred refers to any legal obligations or commitments to pay for goods, services, or works through, but not limited to, a binding agreement, purchase order, contract or equivalent commitment. Any costs incurred before a funding deed is signed by you and the department is ineligible for grant funding. 

When do projects need to be completed by?

Successful projects must be delivered and operational within 4 years of execution of the funding deed, and no later than 30 June 2032. 

Does my project need to complete front end engineering design (FEED) to be eligible for this grant?

No. You do not need to demonstrate completion of FEED studies to be eligible. However, you must demonstrate the deliverability and technical feasibility of your project. This could include evidence of a completed FEED. Please note that FEED is not an eligible cost under this grant. 

Are research and development, early concept, pre-front end engineering design (FEED), or feasibility study activities eligible for this grant?

No. You need to demonstrate your project’s maturity and provide evidence that supports the deliverability and technical feasibility of your project. This could include feasibility assessments or engineering designs. Feasibility studies are not an eligible cost under this grant. 

Can applicants outside of NSW apply for funding?

Yes. Applicants based interstate or internationally can apply. However, to be eligible for funding, the project must be based in NSW.

Am I required to reach Financial Investment Decision (FID) before applying for this grant?

No. If your application is successful, we will provide you with a written offer of funding. If FID is not reached by this stage, it will be a condition under the funding deed. 

Can I partner with a local government for my project?

Yes. You can partner with a local government authority. However, they cannot be the lead applicant as they are ineligible for this grant. 

What costs are eligible under this grant?

Eligible costs include capital and other expenses directly associated with project delivery. Ongoing costs associated with the day-to-day operation of the business such as staff wages are ineligible as well as costs that are incurred prior to the execution of the funding deed. 

Read section 4.5 in our funding guidelines for more information about eligible costs.

Can I use grant funding to purchase land?

Yes. Funding may be used to purchase land if it is demonstrated as necessary for your project and suitable alternatives to rent land do not exist. Please note that any costs must not be incurred until you have signed a funding deed with the department. Also, you cannot use funding to pay existing land costs. 

Can I use grant funding for costs associated with facility upgrades to enable onsite electrification?

Yes. You can use funding to cover costs associated with purchasing, constructing and installing new plant, equipment and/or machinery where necessary to deliver your project. This includes upgrading existing equipment. Read section 4.5 in our funding guidelines for more information.

Can I use grant funding to purchase specialised equipment or hire sub-contractors outside of NSW or Australia?

Yes. You can use funding to cover costs relating to specialised equipment or the hiring of sub-contractors outside of NSW or Australia. Read section 4.5 in our funding guidelines for more details on eligible labour costs.

Your application must also outline how your project will contribute to economic benefits for NSW businesses, industries or regions. Read merit criterion 3 in our supplementary guidance for more information and required evidence.

Are applications assessed on a first come-first served basis?

No. Applications are all individually assessed after the application closing date. This opportunity is a competitive grant, and applications are assessed based on their ability to address the merit criteria. 

What criteria will my application be assessed against?

A team of subject matter experts will assess your application against the following merit criteria:

  • deliverability and technical feasibility of your project
  • financial and commercial feasibility of your project
  • strategic significance of your project
  • value for money and affordability to government.

Read section 4 in our supplementary guidance for more information about evidence you are required to provide in your application. 

How will my application be assessed? How long is the review process?

An assessment team consisting of subject matter experts will score your application against the merit criteria. An independent review panel will oversee the assessment and make recommendations to the decision maker.

We expect the merit assessment of applications to take approximately 6-10 weeks. Applications will be assessed on their own merits in a competitive environment.

Can I look at the funding deed before applying for this grant?

Yes. The funding deed template will be available to download via the grant management system (GMS) application portal and represents the terms we consider appropriate. 

Does my project need to meet a specific target for government dollars invested per tonne of CO2 ($/tCO2e) abated?

No. Your project does not need to meet a specific $/tCO2e target. However, when assessing your project, we will consider the potential abatement of CO2e. 

Who determines the commercial readiness index (CRI) score of my project?

The CRI can be used to indicate the commercial readiness of your project or product.  
Your project or product with a CRI of 3 (commercial scale up) or higher may be suitable for this grant.  

We do not determine a CRI score. The assessment team reviews and scores your application against the merit criteria outlined in our funding guidelines. This includes financial and commercial feasibility.

For further information, read ARENA’s Commercial Readiness Index.

How is ‘commercial scale’ defined and measured?

There is no defined threshold for what ‘commercial scale’ is. In broad terms, commercial scale describes operations that are conducted at a size and capacity suitable for the relevant market of your product. 

Do I need to provide details on regulatory and legal requirements for my project?

Yes. You need to provide details on applicable standards and or regulatory requirements for your project, including the status of meeting them.

Do I need to have a partner organisation to be considered eligible for this grant?

No. You are not required to have a partner organisation to be eligible. You may partner with other organisations to support the delivery of your project in a technical, operational and/or financial capacity. If you do, you must clearly outline the roles and responsibilities of the partner organisation and provide evidence, which can include letters of support. 

Do I need a confirmed project location with development approvals at the time of applying?

Yes. Projects must be based in NSW (eligibility criterion) and you will need to to provide an address to demonstrate you meet this requirement in your application. You will also need to provide details on required development approvals for your project and the status of those. 

Are there particular areas of NSW that are strategically important?

Yes. While projects can be located anywhere in NSW, we encourage projects located in the Hunter and the Illawarra for their strategic alignment with those industrial centres.