Carbon Capture Technologies Program – Round 2

Grant amount (per project): minimum $1 million to maximum $10 million.
Co-contribution requirement: grant funding is up to 50% of eligible project expenditure; applicant (and partners) must fund the balance. Contributions must be cash.
Project timing: project must be completed by 31 March 2031.
Applications close: May 06 2026 (5:00pm AEST)

The Carbon Capture Technologies Program – Round 2 provides competitive grants to accelerate the research, development and demonstration of novel or emerging technologies to capture, utilise or remove CO₂, particularly for Australia’s hard-to-abate and residual emissions. Funding supports pilot and demonstration projects with grants between $1 million and $10 million, with grant funding covering up to 50% of eligible project costs (cash co-contribution required). Projects must include at least $2 million in eligible expenditure and be completed by 31 March 2031.

Eligible technologies may include emerging carbon capture/utilisation approaches and carbon removal technologies (e.g., direct air capture, enhanced rock weathering, biochar/durable sequestration, mineral carbonation).

Key Requirements

Align to program objectives: Projects must advance novel/emerging CO₂ capture, utilisation and/or removal technologies, including capability building and demonstrated permanence/durability of abatement outcomes.
Minimum project scale: Project must have at least $2 million in eligible expenditure.
Co-contribution (cash): Applicants must fund remaining costs because grant funding is up to 50% of eligible expenditure; contributions must be cash (including partner cash contributions).
Exclusions / declarations: Applicant must declare the project does not involve supporting fossil fuel production/energy generation or specified nature-based sequestration approaches without a technological component.
Round 1 constraint: If currently funded under Round 1, the Round 2 project must be substantially different (distinct scope/objectives/deliverables; not a continuation/duplication).
Delivery timeframe: Project must be completed by 31 March 2031.

What is eligible for funding?

Design, construction, testing, or R&D of CO₂ capture, carbon capture and utilisation (CCU), or novel carbon dioxide removal (CDR) technologies
Equipment and software for prototypes, pilot, or demonstration facilities.
Process/system design and engineering, including feasibility and engineering design studies (noting the project must not solely be a feasibility or engineering study)

What companies are eligible for funding?

Eligible applicants must:

Have an ABN and be GST-registered; and be one of
- An entity incorporated in Australia
- An incorporated trustee applying on behalf of a trust (with trading activities meeting the guideline tests)
- An Australian state/territory government agency or body
- A corporate Commonwealth entity
Joint/consortia applications are acceptable with an eligible lead organisation.

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.

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