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NSW Net Zero Manufacturing Initiative – Low Carbon Product Manufacturing Grant Round 2

  • Grants of between $5 million and $30 million are available
  • Applicants must provide a minimum cash contribution of at least 50 percent of eligible project costs from non NSW Government sources. In kind contributions are not counted.
  • Projects must be fully delivered within 4 years of executing a funding deed and no later than 30 June 2032.
  • Applications close August 25 2026

The NSW Low Carbon Product Manufacturing Grant supports projects that establish new or expanded industrial facilities in NSW to manufacture eligible low carbon products at commercial scale. Funding is targeted to projects that help decarbonise the NSW economy by building local manufacturing capability and advanced production capacity. Eligible products include low carbon building materials, green chemicals, biofuels derived from biomass, power fuels produced with renewable energy, and inputs for agricultural production. Projects must request between $5 million and $30 million and can receive up to 50 percent of eligible project costs.

A minimum 50 percent cash contribution from non-NSW Government sources is required. Projects must be sustainable without ongoing government support, have a viable commercial strategy, and demonstrate lower lifetime emissions than conventional incumbent products. The program is a competitive, single stage grant process and projects must be fully delivered within 4 years of deed execution and no later than 30 June 2032.

Key Requirements

  • Support new or expanded commercial scale manufacturing in NSW. Projects must deliver new or expanded industrial facilities in NSW that manufacture eligible low carbon products or materials at commercial scale. Eligible product categories include building materials such as cement, steel, aluminium and cross laminated timber, green chemicals such as ammonia and methanol, biofuels derived from biomass, power fuels produced with renewable energy, and inputs for agricultural production such as fertilisers and animal feeds
  • Demonstrate emissions reduction potential and strategic value. Projects must manufacture products with lower lifetime carbon dioxide equivalent emissions than equivalent conventional incumbent products and provide evidence using an established emissions assessment methodology. The program also seeks projects that contribute to economic growth, investment, employment, circular economy outcomes, process efficiency and broader benefits for NSW businesses, industries or regions.
  • Be commercially viable and investment ready. Applicants must show a viable commercial strategy, market viability, financial viability and profitability, and readiness to deliver an operational commercial scale facility within 4 years of executing a funding deed and no later than 30 June 2032. The technology used to manufacture the product must be proven through successful operations and the project must have a commercial readiness index between 3 and 6.
  • Provide substantial co-contribution and demonstrate additionality. Applicants must request between $5 million and $30 million, representing no more than 50 percent of eligible project costs, and provide at least 50 percent cash contribution from non NSW Government sources. Projects must also show they would not occur in NSW at all, or in the same timeframe, without government support.

What is eligible for funding?

  • Purchasing land where necessary and where suitable rental alternatives do not exist.
  • Purchasing, constructing, installing and commissioning new plant, equipment and machinery.
  • Purchasing, constructing, establishing and fitting out new facilities, buildings or hubs.
  • Purchasing technology and intellectual property required for the project.
  • Upgrading existing facilities, buildings, plant, equipment, machinery or technology where necessary to deliver the project and achieve its outcomes.
  • Limited labour costs for new roles, up to 10 percent of total grant funding, including external project management, specialists, machine operators, consultants, tradespeople and apprentices

What companies are eligible for funding?

Eligible entities:

• Companies incorporated in Australia.
• Companies limited by guarantee.
• Incorporated trustees on behalf of a trust.
• Incorporated associations or co operatives.
• Aboriginal and or Torres Strait Islander Corporations registered under the relevant legislation

Other considerations for applicants:

• Applicants can be based internationally, interstate or in NSW.
• Applicants must hold or be willing to obtain an ABN prior to executing a funding deed.
• Applicants must be or become registered for GST before signing a funding deed.
• Applicants must hold or obtain required insurances, including $20 million public liability insurance and workers compensation, before entering a funding deed.
• Applicants must be solvent, not be subject to insolvency events, and must disclose relevant legal proceedings and grant history.
• Applicants must materially comply with employment, industrial and workplace health and safety obligations.
• If required, applicants must obtain Foreign Investment Review Board approval before project commencement

Is this grant competitive or entitlement based?

Competitive. Your application will be assessed among other applications by a judging panel.

How can I increase my chances of winning this grant?

By engaging an accredited government grants consultant, such as Avant Group.

Competitive grants often require significant business case development and project analysis to support the application, this may include detailed presentations supporting the project’s merit, projected sales, cost-benefit analysis and more.

As part of your engagement with Avant Group, your account manager will assess the required documents and will provide the following as needed to support your grant submission.

Grant application writeup including a detailed presentation illustrating how the grant funding will contribute to your project, how the funding will contribute to the project’s budget, a project milestone plan, delivery timeline, impact on employment if applicable and a breakdown of the management and leadership team for the project

  • Industry analysis presentation
  • Competitor Analysis Presentation
  • Marketing and Sales Analysis Presentation
  • 3-5 year Cashflow Forecast
  • 3-5 year Balance Sheet Forecast
  • Cost-Benefit Analysis of Grant Funding
  • End-to-end grant application including information collating, analysis and application writing
  • CAPEX (Capital Expenditure) cost-benefit analysis
  • Stakeholder relations and Risk Mitigation Plans
  • Any other relevant forecasting that will support your application

How can I get help with my application? Or know if I’m likely to win funding?

Avant Group offers a no-obligation assessment of your eligibility for funding and will assess your likelihood of a successful grant application.