Key information
- Status: Applications are now closed.
- Sign up for the latest news and future funding opportunities
- If you have any questions, please email us at [email protected]
Heat pumps are an effective solution to cut costs and decarbonise heating systems. Switching to heat pumps can benefit your business in many ways, including:
- lowering energy costs
- reducing exposure to volatile global energy prices
- reducing carbon emissions.
Discover energy savings that were identified during our Heat Pump Feasibility pilot program.
About the Heat Pump Feasibility Grant
The Heat Pump Feasibility Grant is now closed.
The grant assisted eligible NSW businesses to assess whether a heat pump would be a feasible option for their site. The grant accepted applications for up to $30,000 to cover 75% of the project costs.
For more information on the eligibility and assessment criteria, please read the funding guidelines (PDF, 637KB). For more information about the funding agreement, please see our sample funding deed (PDF, 429KB).
Applications are now closed
Applications for the grant closed on Thursday 30 April 2026 at 5 pm AEST. Applicants can expect to be notified of an outcome within 20 business days of submitting an application.
If you have any questions about the grant, please contact us at [email protected].
AstraZeneca cuts natural gas use by 46% after installing a heat pump
Pharmaceutical company AstraZeneca participated in our pilot program to conduct a heat pump feasibility study at their Sydney manufacturing plant. After completing the study, they installed a heat pump to reduce the load on their gas boilers. Nathan Collett, Senior Environmental Engineer at AstraZeneca said:
‘The feasibility study supported our business case for this investment, and since installing the heat pump, we've seen an impressive 46% reduction in natural gas use across our Sydney site. We now aim to investigate further energy saving opportunities and replicate this model across our global sites.’
Discover what AstraZeneca learned through their feasibility study and how it guided their decision to proceed with heat pump installation.
As part of AstraZeneca's sustainability targets, we'll be reducing our Scope one and Scope 2 emissions by 98% from our 2015 baseline before 2026.
AstraZeneca's been manufacturing for over 50 years. Our pharmaceutical operations site is located in North Ryde, Sydney.
We produce liquid sterile products using blow-fill-seal technology.
In order to reach our targets, we need to replace our gas boilers on site.
Initially we did not have the internal expertise on alternative options and we also had to be mindful that we operate in a very built up area.
We then had the opportunity to join the NSW Government's Heat Pump Feasibility Pilot, which provided both funding and expert guidance.
As part of the feasibility study, we considered using heat pumps to replace some of the functions of the boiler.
That included providing high temperature and high pressure steam for our processed water, integrating the heat pump with some heat exchangers to support our heating, ventilation and air conditioning system, as well as providing steam for our autoclave.
HVAC hot water emerged as the best option and became the focus of this feasibility study.
The feasibility study included a site assessment, learning about heat pumps and their applications, as well as collecting data. Robust data allowed us to understand our heat loads, temperature differentials and seasonal usage.
The study showed that a heat pump is a highly viable option from a technical perspective.
We estimate the heat pump will reduce our energy consumption by 33.8% compared to our current boilers.
We plan to leverage an incentive under the NSW Energy Security Safeguard to cover part of the capital cost of the heat pump. This will help us pay it back within five years.
We secured capital funding based on this feasibility study.
As part of this project, we've had a team uplift in our understanding of heat pumps.
I encourage other businesses to see similar opportunities to drive sustainability and cost savings.