National Industrial Transformation Program
Grants for Australian companies and eligible public bodies to study, demonstrate or deploy renewable energy, electrification and efficiency technologies that cut industrial emissions.
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Fund a chosen solution for an industrial facility, from feasibility and engineering studies through demonstration and deployment. Industrial activity means manufacturing, producing or processing goods or waste materials, including associated distribution and storage. The project must reduce direct emissions from the activity (Scope 1, such as burning fuel on site) or emissions from purchased energy (Scope 2, such as grid electricity).
Grants total up to A$15 million per project. ARENA contributes at most 50% of eligible costs and expects at least a matching contribution, which can combine cash and approved in-kind contributions: non-cash resources used on the project. ARENA seeks the minimum support needed for a project that is not commercially viable without its assistance. In some cases the grant agreement may require part or all of the grant to be repaid through a negotiated recoupment mechanism.
Eligible expenditure must relate directly to the project and is calculated excluding GST. Costs incurred before signing the funding agreement need ARENA's prior written approval; requests can be made after a funding offer. Tell ARENA about other grants and funding arrangements offered on terms that are not commercial or agreed between independent parties. It considers these in its funding assessment, while finance from the Clean Energy Finance Corporation (CEFC) and Northern Australia Infrastructure Facility (NAIF) is excluded from its concessional-funding calculation.
Eligibility
All eligibility requirements must be met when applying and throughout the project.
Hold an Australian Business Number throughout the project and be an Australian entity incorporated under the Corporations Act 2001, a state or territory-owned corporation or its subsidiary, a local government or council, or an Australian organisation representing and supporting local governments or councils. Universities and other research institutions cannot lead an application but may partner with an eligible applicant.
Carry out the project primarily in Australia for the direct benefit of an industrial facility. The project must have a direct contractual connection to an eligible industrial facility. If the facility is not the lead applicant, it is expected to be a project partner. Projects at new or expanded coal and gas facilities are excluded. A new facility means one that was not already operating before 1 June 2023.
Use renewable energy, energy efficiency or electrification technology. Electrification replaces fossil-fuel technology with equipment using electricity, or enables that replacement. Technology Readiness Levels track progress from early research to a working system; ARENA uses the US Department of Energy scale. Standalone early research at levels 1–3 is excluded; research components may form part of a larger development, demonstration, deployment or commercialisation activity. ARENA assesses the project's contribution to the programme objectives.
Projects need a pathway to net zero, replicability and further commercial deployment. Excluded activities include early options assessments or energy audits identifying possible solutions; commercially proven renewable electricity installations or power-purchase agreements; predominantly scaling established Australian technologies or business models; routine repairs and maintenance; plant closures; and measures outside the industrial process, such as building lighting or space heating and cooling.
ARENA-funded expenditure outside Australia is limited to 10% of ARENA funds, excluding equipment and materials, including software. Exceptional circumstances must be justified and agreed by ARENA in writing. Request an exemption before lodging the full application, explaining why the work cannot be done in Australia or would benefit from being done overseas.
Have the intellectual property rights or access needed for the project. You must meet applicable workplace gender equality obligations, declare compliance and not appear on the non-compliant organisations list. Declare that you will identify and address modern slavery risks in project operations and supply chains, comply with applicable Modern Slavery Act obligations and assist ARENA with its compliance.
You, related corporate bodies and personnel must not have breached Australian sanctions laws; you must comply during delivery, ensure related corporate bodies comply and make reasonable efforts to ensure subcontractors comply. Disclose relevant legal proceedings or investigations after proper enquiry. Neither you nor a related corporate body may appear on the National Redress Scheme list of institutions that have not joined or indicated an intention to join.
Do not apply to both this programme and the Industrial Transformation Stream (ITS) for the same project. You may apply to both programmes for separate eligible projects.
How to apply
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- Contact ARENA before submitting your Expression of Interest.
Discuss your proposal with ARENA at industrialtransformation@arena.gov.au before submitting an Expression of Interest through ARENANet using the programme page's application link. Submit a project plan of no more than 20 pages, a conflict-of-interest declaration and the project budget template. The programme accepts ongoing applications until funds are exhausted or ARENA terminates it.
Successful EOI applicants are invited to submit a full application and receive its application link. Review the funding agreement template and record clauses you disagree with in the compliance table; submit a blank table if you agree. ARENA can, at its discretion, offer a one-stage full application for simpler, low-cost projects such as feasibility or front-end engineering design studies.
Agree a plan to share lessons from the project so others can adopt its technologies; commercially valuable information and intellectual property are excluded from knowledge sharing. Fulfil the project's reporting requirements. The agreement template requires regular progress information and, when ARENA requests it, carbon-abatement data and reports on direct jobs during the agreement and for five years after the final milestone. Keep project financial books and records, and require subcontractors to do so, during the agreement and for seven years afterwards. Agreement changes must follow the written variation process, with a separate notice-and-agreement route for minor changes.
ARENA can recover misspent funding and unspent funding not legally committed at the agreement's specified checkpoints. A repayment notice requires repayment within 20 business days, including interest where applicable.