The Albanese Government has commenced Australia’s largest innovation grant program, making $1.5 billion available for projects that move the country toward net-zero. The plan is to reshape Australia’s industrial base and build sovereign capability for the decades ahead.
What the money is funding
ARENA is administering the Future Made in Australia Innovation Fund, with three streams that indicate precisely where the opportunities sit.
- Green metals
$750 million for iron, steel, alumina and aluminium. This is a pragmatic play for energy-intensive sectors: steel, aluminium, and alumina production, which face mounting pressure to cut emissions and manage rising energy costs. - Low carbon liquid fuels
$250 million for sustainable aviation fuels and renewable diesel. With roughly half of Australia’s energy demand dependent on liquid fuels, government is seeding a cleaner alternatives sector projected to be worth $36 billion by 2050. It will be backed by a separate $1.1 billion package to draw in private investment in the 2030s. - Manufacturing of renewable technologies
An initial $200 million for commercialisation or manufacturing readiness will target: batteries and thermal storage, hydrogen technologies such as electrolysers and related infrastructure, EV chargers and broader EV infrastructure, transmission line technologies and battery electric vehicles. Solar is to be handled separately under the Solar Sunshot program.
What ARENA wants to see
Applications need to show technology that is at least at proof of concept, or that it entails a genuine lift in manufacturing readiness that is more than a simple capacity increase or an electrification upgrade. Co-contributions are expected. Decisions will factor in legislated community benefits principles, such as creating safe and secure jobs and engaging local communities.
The aim is to raise the bar – drive deeper innovation and provide local commercial benefit in a way that does not make it hard for small business to compete. ARENA will seek proof of concepts, co-contributions, and community benefits, so that funding is for projects with real impact, not incremental tweaks.
For larger players, this is an opportunity to lead with scale and credibility. For smaller firms, it can be more challenging. In these instances, collaboration is the key. Strategic partnerships, consortium bids, and early engagement with supply chain partners can turn these requirements into a competitive advantage. Those who adapt quickly will not just compete, they will thrive.
Reading the policy signals
In September, Climate Change and Energy Minister Chris Bowen and Finance Minister Katy Gallagher told ARENA to prioritise domestic manufacturing for wind energy components, like towers, indicating that the government’s focus will be to build a local capability in wind technology.
Yet when ARENA released the official focus areas last month, wind wasn’t listed. This suggests the guidelines are not set in stone and there will be room for flexibility if a project is considered strategically important. So even if your technology isn’t named in the priority list, it could still be supported if it aligns with broader policy goals.
Another important signal: any grant over $50 million needs ministerial approval. That means very large projects will face extra scrutiny and political oversight. It’s not just about ticking boxes; it’s about demonstrating national impact and alignment with government priorities.
Avant Group’s Take: A once in a cycle funding opportunity
Over the years, we have worked with a range of manufacturing leaders, energy innovators and scale ups that have mapped projects to the scale ARENA is seeking. Amongst these proposals, we have seen a few things in common:
- A credible decarbonisation pathway that shows measurable emissions reductions and a clear link to net zero
- A commercialisation strategy that moves beyond pilots and into investable scale, with partners and offtake aligned
- Community benefits built in from day one
Green metals and low carbon liquid fuels will lead the charge in 2026–2027. These sectors have the largest funding allocations and clear decarbonisation pathways, making them primed for rapid scale. Battery storage and hydrogen technologies will follow closely, driven by demand for energy security and electrification.
Where will constraints bite? Critical minerals for batteries, electrolyser components for hydrogen, and feedstock for sustainable aviation fuels will be in short supply. Global competition for these inputs is fierce, so early procurement and strong partnerships will be the difference between success and delay.
The winners will be those who act now. Securing supply chains, locking in partners, and demonstrating readiness is imperative. Waiting until guidelines tighten or markets heat up will leave businesses behind.
How to position your project to maximise your chances of funding
If you are assessing your project for fitment with this grant program, three practical steps will lift your readiness:
- Provide evidence of your baseline and the impact
Gather hard data on energy use, emissions and process efficiency. Build scenarios that show the step change your project delivers. - Design for and scale
Map your pathway through proof, demonstration and early commercial production. Identify which risks remain and how they will be managed. - Lock in partners early
Line up technology vendors, customers and capital. Establish clear roles and obligations so your proposal can progress through ARENA’s due diligence without friction
This fund is a once in a cycle opportunity to accelerate Australia’s shift to cleaner industry while building long term competitive strength. If you have a project in green metals, low carbon fuels or renewable manufacturing and you are ready to move, we can help pressure test eligibility, quantify benefits and shape a persuasive application.
Book in for a free grant eligibility assessment with one of our team members here.