NSW Renewable Gas Production Program – Industrial Decarbonisation Initiative

Grant up to $20M (Grants above this limit may be awarded in exceptional circumstances)
Funds projects that inject renewable gas into NSW gas networks to decarbonise high-emitting industrial users.
50% co-contribution required
EOI applications close April 24th, 2026

The NSW Renewable Gas Production Program is a competitive, state‑based funding initiative delivered under the Industrial Decarbonisation Initiative. It supports the commercial deployment of large‑scale, front‑of‑meter biomethane production facilities that inject renewable gas into the NSW gas network to decarbonise high‑emitting industrial users.

The program forms part of the NSW Renewable Fuel Strategy and aims to accelerate the development of a viable biomethane market by co‑investing in infrastructure that delivers cost‑effective, large‑scale renewable gas. Biomethane is recognised as a critical decarbonisation solution for industrial processes that are difficult or uneconomic to electrify, including high‑temperature heat and chemical feedstock applications.

Funding is targeted at projects that demonstrate strong commercial and technical maturity, firm industrial offtake pathways, and the ability to deliver meaningful emissions reductions for NSW industry. Supported projects must produce and inject biomethane into the NSW gas network and displace fossil gas use at high‑emitting industrial facilities that report under the National Greenhouse and Energy Reporting (NGER) Scheme.

Key Requirements

Large‑scale biomethane production Projects must deliver commercially mature, front‑of‑meter biomethane facilities capable of injecting renewable gas into the NSW gas network at scale, with a minimum production capacity of 0.1 PJ per year.
Industrial emissions reduction Biomethane must be supplied to high‑emitting NSW industrial facilities, particularly where gas is used for high‑temperature processes or as feedstock that cannot be easily electrified.
Co‑investment and value for money Applicants must provide a minimum 50% co‑contribution toward eligible project costs, with higher cash contributions preferred to demonstrate commercial commitment and value for public funding.
Firm supply chain and offtake pathways Applicants must demonstrate engagement with feedstock suppliers, gas network operators, and industrial offtakers, progressing to commercial agreements prior to milestone payments.
Operational readiness by 2030 Projects must be operational and injecting biomethane into the NSW gas network on or before 30 June 2030.

What is eligible for funding?

Capital works for biomethane production facilities
Feedstock collection, storage and preparation infrastructure
Gas upgrading, purification and methanation systems
Biomethane compression, pipelines and network injection assets
Detailed engineering design, procurement, construction and commissioning
Operational readiness activities directly linked to project delivery

What companies are eligible for funding?

Eligible entities

Applicants must:

Hold an Australian Business Number (ABN)
Be an Australian incorporated entity
Be the biomethane plant owner or have operational control
Intend to participate in GreenPower’s Renewable Gas Certification
Not be insolvent or subject to sanctions

Additional considerations

Projects must be located in NSW
Feedstock must be sourced in NSW
Biomethane must be injected into the NSW gas network
Behind‑the‑meter projects and early‑stage feasibility studies are not eligible

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.

This grant is open

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