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NSW Net Zero Manufacturing Initiative - Clean Technology Innovation

NSW Net Zero Manufacturing Initiative – Clean Technology Innovation

The Round 2 Clean Technology Innovation program consists of two funding streams:

  • The commercial readiness stream ended last 5 April 2024.
  • The project development stream will offer grants of up to $250K per project, covering up to 50% of eligible project costs.
    • Detailed applications will be accepted until 3 May 2024.

The Net Zero Manufacturing Initiative, integral to the NSW Government's aim for net zero emissions by 2050, combines three programs:
- Clean Technology Innovation (CTI) for developing low-emission technologies
- Low Carbon Product Manufacturing (LCPM) to support local production of essential low-carbon goods
- Renewable Manufacturing (RM) to boost local production of renewable energy components.

The CTI grants aim to promote innovation across the entire spectrum of product development – from initial research and testing to infrastructure enhancement, commercialisation, and implementation. The goals of the CTI grants include:
- assessing the technical and commercial feasibility, viability, and compliance of a product or project
- speeding up and broadening the research, development, and commercialisation of low emissions technologies with the potential to scale, replicate, and become cost-effective
- cultivating an ecosystem capable of nurturing clean technology innovation
- attracting leading clean technology companies and innovations to NSW, thereby positioning NSW as a hub for clean technology excellence.

Key Requirements

The application process for the commercial readiness stream will involve two stages.
  1. Stage 1: expression of interest (EOI) – applications meeting eligibility criteria and demonstrating merit will proceed to submit a full application
  2. Stage 2: full application – a comprehensive application assessed against merit criteria

Projects need to be completed and operational within 3 years of the funding agreement being executed.

During the EOI stage, eligible applications will be evaluated based on five merit criteria:

  1. Technical deliverability and advancement:
    • Clearly outline the technical functionality, novelty, and potential of the proposed technology, including project scope, objectives, and deliverables.
    • Identify pathways for the clean technology’s progression on the Technology Readiness Level (TRL) scale.
  2. Capacity and capability to deliver:
    • Demonstrate the capacity and capability of the applicant, contractors, and project partners to execute the project within schedule and budget.
    • Provide evidence of past performance on similar projects and suitability of staff or arrangements.
  3. Financial and commercial feasibility:
    • Outline pathways for the clean technology’s progression on the Commercial Readiness Index (CRI) scale and demonstrate commercial feasibility.
    • Present funding arrangements, including a 1:1 co-contribution between grant funding and other sources, ensuring value for money.
  4. Project delivery and challenges:
    • Identify project risks and strategies to manage them, as well as timelines and strategies for achievement.
  5. Alignment with NSW Government Strategic Objectives:
    • Align with objectives and priority areas outlined in the NSW Department of Chief Scientist and Engineer’s Decarbonisation Innovation 2023 Study.
    • Demonstrate potential economic, environmental, and/or social benefits to NSW, including contributions to businesses, communities, industries, and regions.

During the detailed application stage, the assessment will be based on the same five merit criteria:

  1. Technical deliverability and advancement:
    • Provide detailed information on the technology’s functionality, novelty, and potential, supported by engineering design, methodology, and delivery plans.
    • Demonstrate the methodology for advancing the technology on the TRL scale and forecast emissions abatement in the target sector.
  2. Capacity and capability to deliver:
    • Demonstrate the capacity and capability of the applicant, contractors, and project partners, supported by resumes and evidence of past projects.
    • Outline governance arrangements and provide letters of support from industry partners or investors.
  3. Financial and commercial feasibility:
    • Outline the business model and revenue model, supported by market research or economic analysis.
    • Detail the target market, competitors, and competitive advantage, as well as funding requirements.
  4. Project delivery and challenges:
    • Provide a detailed project plan, including key activities, success measures, timelines, and evaluation methods.
    • Outline risk management strategies for technical, delivery, and market challenges.
  5. Alignment with NSW Government Strategic Objectives:
    • Align with commercial readiness objectives and priority areas identified in the NSW Department of Chief Scientist and Engineer’s Decarbonisation Innovation 2023 Study.
    • Forecast social and economic benefits to NSW, including savings, job creation, and productivity improvements.
    • Describe the commitment to sharing project learnings with the NSW Government and broader community.
For the project development stream, the application process will follow a competitive single-stage assessment.

This involves submitting a detailed application evaluated based on merit criteria.

Projects need to be finished within 1 year of the funding agreement being executed.

Eligible applications will undergo assessment based on three criteria:

  1. Purpose and capability to deliver:
    • Show the necessity and rationale for the study.
    • Demonstrate the capacity to achieve study objectives.
    • Identify key risks and suitable mitigation strategies.
    • Contribute to the study budget and activities.
    • Highlight the importance of the study.
    • Demonstrate the applicant’s and study partners’ expertise and experience to execute the study.
  2. Commitment to implementation or progression:
    • Outline a strategy to advance the proposed technology on the TRL and CRI scales.
    • Present evidence of market demand for the proposed technology and a business model to support its growth.
  3. Alignment with NSW Government Strategic Objectives:
    • Align with the objectives of CTI and priority areas outlined in the NSW Office of Chief Scientist and Engineer’s Decarbonisation Innovation 2023 Study.
    • Showcase economic, environmental, and/or social benefits to NSW businesses, communities, industries, and regions.

What is eligible for funding?

For the commercial readiness stream, eligible projects must meet the following criteria to qualify for funding:
  • Location: Projects must be based in NSW.
  • Funding range: Applicants can apply for funding between $250,000 and $5 million.
  • Completion timeframe: Projects should be expected to be completed within 3 years of commencement.
  • Technological readiness: Projects must have a TRL between 6 – 9.
  • Commercial readiness: Projects must have a CRI of less than 4.
  • Alignment: Projects should align with a Decarbonisation Opportunity Cluster as outlined in the Department of Chief Scientist and Engineer’s Decarbonisation Innovation 2023 Study.
  • Co-contribution funding: Co-contribution funding arrangements of at least 1:1 between grant funding (from this grant) and other sources (e.g., applicant, collaborators, private or other public organisations) are required. Projects with cash contributions from potential customers or institutional investors will be viewed favourably during the assessment. Higher cash contributions will also be favoured. In-kind (non-financial) contributions are not eligible.

Furthermore, the lead applicant must confirm that the proposed activities will advance or potentially progress the clean technology product or solution towards commercialisation. Eligible activities may include technology development, construction of specific testing infrastructure, prototyping, product verification, demonstration and deployment, or any other activities assisting with the commercialisation of a clean technology product or solution. Projects may also encompass supplementary activities such as late-stage feasibility studies, business case development, and front-end engineering and design as critical milestones contributing significantly to achieving the commercialisation of the product or project.

For the project development stream projects to qualify for funding, they must meet the following criteria:
  • Location: Projects must be based in NSW.
  • Funding amount: applicants can apply for funding up to $250,000.
  • Completion timeframe: Projects should be expected to be completed within 12 months of commencement.
  • Technological readiness: Projects must have a lab-proven technology or a TRL between 5 – 9, representing a clear go/no-go decision point requiring a technical, feasibility, or equivalent study.
  • Commercial readiness: Projects must have a CRI of less than 4.
  • Alignment: Projects should align with a Decarbonisation Opportunity Cluster outlined in the Office of Chief Scientist and Engineer’s 2023 update to the Decarbonisation Innovation Study.
  • Co-contribution funding: Co-contribution funding arrangements of at least 1:1 between grant funding (from this grant) and other sources (e.g., applicant, collaborators, private or other public organisations) are required. Projects with cash contributions from potential customers or institutional investors will be viewed favourably during the assessment. Higher cash contributions will also be favoured. In-kind (non-financial) contributions are not eligible.

Additionally, the lead applicant must confirm that the proposed activities will advance or potentially progress the clean technology product or solution. Eligible activities may include technical feasibility studies, commercial viability studies, development of business cases, front-end engineering design (FEED), gaining approvals or certifications, or any other activities assisting with the commercialisation of a clean technology product or solution.

What companies are eligible for funding?

To qualify for funding, applicants must:

  • hold an Australian Business Number (ABN)
  • fall under one of the following eligible categories:
    • an Australian entity duly incorporated under the Corporations Act 2001 (Cth), holding and complying with all necessary authorisations critical to the conduct of their business operations
    • a private or publicly funded research organisation, applying through its relevant commercialisation or technology transfer department, which will establish a separate entity for the commercialisation of the clean technology (such as a university spin-out)
    • a Commonwealth entity under section 10 of the Public Governance, Performance and Accountability Act 2013 (Cth)
    • an Australian state- or territory-owned body corporate, or a subsidiary of such
    • an Australian state, territory, or local government or council
    • an international non-government organisation aiming to establish an Australian-based entity for the commercialisation of a clean technology not yet adopted in NSW.
  • be the legal and beneficial owner of, or possess all necessary rights to use, any intellectual property essential for project execution
  • hold or obtain all insurances mandated by law, including $20 million public liability insurance and worker’s compensation
  • substantially comply with all:
    • obligations under employment contracts, industrial agreements, and awards
    • relevant codes of conduct and practice governing conditions of service and relations between the applicant and its employees
    • applicable Workplace Health and Safety legislation.
  • not be subject to any insolvency event, including being the subject of an order or resolution for winding up or dissolution (except for reconstruction or amalgamation), or the appointment of a receiver, liquidator, administrator, or similar
  • not be listed on the Australian Department of Foreign Affairs and Trade sanctions list
  • disclose any ongoing or pending legal proceedings or investigations, including litigation, arbitration, mediation, or conciliation, involving the applicant or any related body corporate (as defined in the Corporations Act 2001 [Cth])
  • disclose all Australian state, territory, and/or commonwealth government grants applied for regarding the project, including the history of grant funding (both successful and unsuccessful applications)
  • each application must have a lead applicant. If the funding recipient differs from the lead applicant at any stage of the application process or grant program, the lead applicant must explicitly indicate this in their application.

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.