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

There are 3 grants open for applications:

For the clean technology innovation grant, applications close on 8 September 2026 at 12:00 pm (AEST).

For the low carbon product manufacturing grant, applications close on 25 August 2026 at 12:00pm (AEST).

For the renewable manufacturing grant, applications close on 25 August 2026 at 12:00pm (AEST).

We encourage you to use our eligibility checker to help select the right grant for you.

You can also register for our webinar on Monday 22 June from 10:30 am to 11:30 am (AEST) to learn more about each grant including eligibility and the application process.

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

Yes, you can apply for more than one grant under the Net Zero Manufacturing Initiative. However, if you are successful, your project will only receive funding from one of the grant streams. We encourage you to use our eligibility checker first, to ensure you apply for the grant which is most relevant to your project.

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

Yes, however each project must be unique. 

When do applications open and close for this grant?

Applications opened on 2 June 2026. The deadline to submit your application is 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.

How do I submit my application for this grant?

You must submit your application using our grant management system (GMS), a secure online grant management tool. You can submit your application any time before the closing date on 25 August 2026 at 12:00 pm (AEST).

For more information on how to apply and key dates, read our funding guidelines and supplementary guidance.

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

No. However, the applicant is 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, email 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. Grants will be awarded to applicants who confirm committed financial contributions by the time they submit their application. 

Applicants that propose to meet their financial contribution requirements by using future revenue streams 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 the applicant or a partner organisation more favourably than future revenue streams.

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.  

As an applicant, 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.

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. 

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. 

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.

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.

What is the application process for this grant?

This is a single stage application process. You must submit an online application via the Grant Management System (GMS) application portal.  

Read section 3 in our funding guidelines for more details about the application process.

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.

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 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.