SME Industrial Decarbonisation Fund

Total funding available: $10 million ex GST.
Funding available per applicant: AMGC co-investment from $200,000 to $500,000, with projects generally expected to have total matched funding between $400,000 and $1 million.
Matched funding requirement: applicants must contribute at least 50 per cent of eligible project expenditure in cash. In-kind contributions may be provided over and above the required cash contribution but are not obligatory.
Activity period: project activities and expenditure must be completed before 31 March 2028.
Applications close December 31st 2027, or earlier if funding is fully exhausted.

The SME Industrial Decarbonisation Fund supports Australian small-to-medium manufacturers to reduce direct greenhouse gas emissions by transitioning eligible fossil fuel-powered manufacturing processes to renewable energy technologies, including electrification. The program focuses on three manufacturing areas: surface treatment, process steam and metals processing. Funding is provided through dollar-for-dollar co-investment, with AMGC contributing up to 50 per cent of eligible project expenditure.

Eligible projects must clearly demonstrate a pathway to commercial viability, deliver measurable emissions reductions and provide opportunities for broader industry learning. The program also supports activities that build workforce capability, enable updated certification or compliance, upgrade relevant equipment and share practical knowledge across the manufacturing sector. Applications are assessed on an open, continuous and competitive basis, with funding allocated until exhausted.

Key Requirements

Support SME manufacturers to lower Scope 1 emissions through renewable energy solutions, including electrification. Projects must focus on reducing direct emissions from fossil fuel use in eligible manufacturing processes.
Focus on eligible manufacturing processes. Projects must relate to surface treatment, process steam or metals processing, including examples such as powder coating, galvanising, sterilisation, drying, cooking, fabrication, refinement, transformation or extraction.
Demonstrate commercial viability and measurable emissions reduction. Applicants must show that the project can deliver clear decarbonisation outcomes and provide measurable reductions in emissions, using appropriate baseline and post-implementation data.
Provide industry co-investment. Applicants must contribute at least 50 per cent of eligible project expenditure in cash and demonstrate access to funds for their contribution.
Build workforce and organisational capability. The program supports upskilling, certification and technology upgrades connected to decarbonisation processes.
Support knowledge sharing and replicability. Applicants must be prepared to share non-confidential learnings with AMGC, ARENA and the broader manufacturing ecosystem to support wider adoption of successful decarbonisation approaches

What is eligible for funding?

Renewable energy assessments, up to 10 per cent of total project cost.
Employee training, certification and assessment related to renewable energy technologies.
Power supply upgrades needed to increase electricity capacity.
Regulatory compliance activities for power or facility upgrades.
Capital equipment that enables a transition from fossil fuel to renewable energy, up to 75 per cent of total project cost
Labour and on-costs associated with equipment training and business changes required for installation of new renewable energy equipment.
Contractor costs for agreed project activities, where costs directly relate to the approved project and are properly evidenced

What companies are eligible for funding?

Eligible applicants must:

Be an SME with up to 200 employees.
Have an Australian Company Number and Australian Business Number.
Be non-tax-exempt and registered for GST.
Be incorporated in Australia, including start-ups and trading corporations where trading activities are sufficiently significant.
Apply for activities taking place in Australia.
Use fossil fuels for surface treatment, process steam or metals processing and propose transition to renewable energy technologies for those processes.
Request AMGC co-investment between $200,000 and $500,000 in cash, unless a lower amount is considered on a case-by-case basis.
Contribute at least 50 per cent of total eligible project expenditure in cash.
Be able to deliver the project before 31 March 2028.
Provide evidence of financial capacity, including an accountant declaration.
Consent to communications and media activity as part of the program requirements

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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