The NSW Government has unlocked $80 million to help mining and manufacturing industries cut emissions as NSW continues its journey towards net zero.
Two major grant programs are now open as part of the new Industrial Decarbonisation Initiative to support industries to shrink their carbon footprint and accelerate the transition to sustainable energy sources.
The new $40 million Renewable Gas Production Program grant will boost the production of biomethane gas, supporting the shift to renewable energy by providing a cleaner fuel supply for the state.
Biomethane is made from organic waste such as food scraps and agricultural by-products and can be used in the same way as natural gas to supply homes and businesses without the need to change existing infrastructure.
The new grant will co-fund up to 50 per cent of the costs to develop commercially mature biomethane production that can turn our state’s waste into energy.
Eligible projects must inject at least 0.1 petajoules (PJ) of biomethane into the network each year by June 2030, supporting the programs aim to generate enough renewable gas to replace almost 4 per cent of the natural gas currently used by industry.
Additionally, the new $40 million Low Emissions Industry Program grant will support NSW manufacturing and mining facilities reporting to the National Greenhouse Gas Emissions Reporting Scheme emitting less than 100,000 tC02 per year to deliver practical, on-site emissions reductions projects including:
- Fuel switching: replacing carbon intensive energy sources with lower-carbon or zero-carbon alternatives
- Heat pump installations: shifting industrial heating from fossil fuels to clean, efficient, electricity-driven technology
- Facility retrofits and process improvements: upgrading existing infrastructure and optimising operations to reduce emissions, rather than building new facilities from scratch.
Together, the grants will give NSW industries a competitive edge, securing long-term prosperity while tackling climate change head on.
The Industrial Decarbonisation Initiative streamlines the NSW Government’s industrial emissions reduction grants to make it easier for businesses to apply for grants and deliver projects.
Applications for both grants are now open. To apply or for more information please visit our webpage.
Executive Director of Business and Industry Decarbonisation, Jenny Merkley said:
“Decarbonising industry is critical to reaching net zero while protecting the health of our communities and environment.
“As a streamlined gateway to NSW Government funding, the Industrial Decarbonisation Initiative plays a key role in the broader energy transition, backing solutions that can be delivered now rather than years down the track.
“Under the new Low Emissions Industry Program, manufacturers and mining operators have real opportunities to lower energy costs, strengthen performance and implement proven solutions that reduce carbon pollution.
“While the Renewable Gas Production Program will help scale biomethane production which is a practical and affordable solution to put our state’s waste to work, capturing gas that would otherwise enter the atmosphere, and converting it into a cleaner fuel supply.”