Powering the Regions Fund – Safeguard Transformation Stream R2

R2: Open with three new batches
- Batch 1: 5 Feb 2026 – 5 May 2026
- Batch 2: 6 May 2026 – 5 Nov 2026
- Batch 3: 6 Nov 2026 – 6 May 2027
The grant ranges from $500K to $50M, covering up to 50% of eligible project expenses.
Cash co-contribution required

The Powering the Regions Fund – Safeguard Transformation Stream Round 2 is a Federal Government competitive grant program designed to support trade‑exposed facilities covered by the Safeguard Mechanism to reduce their Scope 1 emissions and contribute to Australia’s emissions reduction targets for 2030, 2035 and 2050.

The program forms part of the Australian Government’s Safeguard Mechanism Reforms and supports facilities facing international competitiveness pressures to decarbonise without increasing the risk of carbon leakage. Funding is targeted at on‑site decarbonisation projects and shared user infrastructure that directly reduce Scope 1 emissions at eligible facilities.

Applications are assessed competitively and in funding batches. Successful projects are expected to commence within three months of executing a grant agreement and must be completed by 31 March 2033.

Key Requirements

Emissions Reduction Outcomes: Projects must deliver verifiable Scope 1 emissions reductions at trade‑exposed Safeguard facilities and demonstrate alignment with national emissions targets.
Trade‑Exposed Facility Focus: Funding is restricted to facilities subject to the Safeguard Mechanism that are trade‑exposed and not new or expanded coal or gas production facilities.
Value for Money and Leverage: Applications must demonstrate efficient use of public funds and leverage private and/or state investment through mandatory co‑contributions
Capability and Delivery Readiness: Applicants must show technical, financial and organisational capacity to deliver the project within the approved timeframe.

What is eligible for funding?

Funding may support:

On‑site decarbonisation projects reducing Scope 1 emissions, including:
- Energy efficiency upgrades
- Fuel switching
- Equipment upgrades enabling lower‑carbon fuels
- Fugitive emissions reduction
- On‑site carbon capture, use and storage
Shared user infrastructure that reduces Scope 1 emissions, including:
- Hydrogen and bioenergy production and transport
- Off‑grid electricity generation, storage and transmission
- Shared carbon capture, use and storage infrastructure
Workforce skills development related to new low‑emissions technologies

What companies are eligible for funding?

Eligible applicants must:

Be an owner or operator of a trade‑exposed Safeguard Mechanism facility
Hold an Australian Business Number (ABN)
Be one of the following:
- Australian‑incorporated entity
- Company limited by guarantee
- Incorporated association

Additional considerations:

Cash co‑contribution is mandatory
Projects receiving funding from another Commonwealth grant program are ineligible
Joint applications are permitted, provided the lead applicant is 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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