SME Industrial Decarbonisation Fund
Matched grants help Australian small and medium manufacturers replace fossil fuel processes with electric or renewable energy technologies for surface treatment, process steam and metals processing.
Questa opportunità è attualmente disponibile in inglese.
You can fund installation, deployment and certification of equipment that reduces emissions from fuel burned at your manufacturing site. Examples include electric curing ovens for coatings, electric boilers or heat pumps for process steam, and induction furnaces for metals processing.
AMGC offers up to 50% of eligible project expenditure, normally AUD 200,000–500,000. Requests below AUD 200,000 can be considered individually. You must provide at least 50% in cash and cover all ineligible costs; in-kind support can be added beyond the required cash contribution. Other Commonwealth, state, territory or local government funding cannot pay your required balance of project expenditure.
There are two separate fees calculated on the industry contribution: a 3% commencement fee at the start and a 3% management fee spread across project milestone payments. For a AUD 200,000 industry contribution, each fee is AUD 6,000.
Eligible costs include renewable energy assessment consultants, relevant employee training and certification, power-supply upgrades, regulatory compliance and equipment. Assessment consultants are capped at 10% of total project cost. Eligible capital equipment is capped at 75% of total cash project funding. Direct project salary costs are capped at AUD 175,000 per person per financial year, reduced proportionally for shorter periods; eligible salary costs may include a further 30% allowance for employer costs such as superannuation, payroll tax and workers compensation insurance. Leadership and administrative staff costs qualify only when directly managing the project.
Payments reimburse approved expenses after each milestone is completed and accepted, supported by receipts and progress reports. Spending on a milestone is at your own risk until AMGC gives written authorisation. Keep project books and records for seven years after the agreement expires or ends, including payment evidence and contractor cost records; missing records can make an expense ineligible. You must provide progress and final reports, including expenditure, outcomes and emissions reductions.
You must share non-confidential lessons and agree to a public case study. Project intellectual property normally belongs to the lead participant, subject to the project application or a separate agreement; AMGC receives a perpetual, royalty-free licence to relevant materials for knowledge sharing and its ARENA obligations, without commercial exploitation rights.
Eligibility
- Your company must be incorporated in Australia, have up to 200 employees, hold both an Australian Company Number and Australian Business Number, be non-tax-exempt and be registered for GST. Trading must be a substantial part of its activities; start-ups can qualify. Individuals, partnerships, trusts and government bodies, including government business enterprises, cannot apply. An incorporated trustee may apply for a trust with additional documentation.
- Your Australian project must replace fossil fuel use with renewable energy technologies, including electrification, in surface treatment, process steam or metals processing. It must show how it can become commercially viable and deliver measurable emissions reductions. Eligible renewable energy technologies use or enable energy from sources such as solar, wind, hydro, wave or geothermal; hybrid systems and enabling technologies such as energy storage can qualify. AMGC funds may pay for overseas activities only with its written agreement and up to 10% of eligible expenditure; equipment and materials are excepted from that limit.
- Show your financial viability and ability to pay your cash share and ineligible costs using the required external accountant declaration. The declaration records available cash and financial facilities, debt, financial ratios and your contribution. You must also demonstrate relevant project delivery experience, how you will protect intellectual property (IP) in products or energy technologies developed during the project, including your own IP and your customers’ IP, and how the project can scale within your business or be shared with peers. Stand-alone software is excluded; software must be integral to manufacturing decarbonisation.
- Estimate emissions savings against the previous 12 months of energy or fuel bills, then verify actual savings using post-installation data that accounts for seasonal variation. Highly variable production can use emissions per unit produced instead of absolute volumes.
- The fund excludes carbon capture, storage and utilisation, incineration of non-putrescible waste (waste that does not readily decompose), and projects predominantly deploying commercially established Australian renewable energy supply technologies or business models, including ordinary solar, wind or battery installations and power purchase agreements. Projects must incorporate eligible renewable energy technologies.
- Costs already supported through other sources, including government funds, are ineligible. In-kind contributions, financing costs, debt financing, depreciation, maintenance, insurance, rent, renovations, utilities, general office assets, unrelated training and routine operating expenses are also excluded. You must still maintain adequate insurance or similar coverage for liabilities arising from funded activities. AMGC’s Director Renewable Energy may approve expenditure exceptions in the co-investment agreement or by notice.
- Project activities and expenditure must be completed before 31 March 2028. AMGC will not approve a second project until your first is complete. Participation also requires consent to fund communications and media activities.
How to apply
- Stato
- chiude 31 dic 2027
- Apre
- Chiude
- Restrizioni del bando
- Applications close earlier if the fund is fully allocated.[^c1]
- Create a Good Grants profile and pass the eligibility checklist to access the full application.[^c16][^c17]
- Project activities and expenditure must be completed before 31 March 2028.[^c11]
Read AMGC’s fund guidance, FAQ and sample project agreement, then create a profile in the Good Grants portal linked from the programme page. Complete the eligibility checklist: you must answer yes to every question before the full application unlocks. Submit the requested information and attachments and address the merit criteria. AMGC’s Director Renewable Energy can assist with eligibility and project costs; application problems go to applications@amgc.org.au.
Applications are open until 31 December 2027 or until the fund is fully allocated. The guidance allows applications received after that date to be handled individually; this is not a guaranteed extension. The merit assessment requires at least 50 out of 100 and technical and commercial verification, including evidence that the project would not proceed without funding support.
If successful, sign the project agreement within 30 days of the written offer, unless AMGC extends that period. Start after board approval is notified and the agreement is executed; pre-approval costs are ineligible. Payments require an executed agreement, satisfactory progress and proof of eligible expenditure. Request any changes to milestones, activities or timing in writing before the agreement ends; changes to the agreement must be written and signed by all parties, and funding cannot increase. AMGC may recover funding for a breach.
Amounts are exclusive of GST unless stated otherwise. AMGC adds GST where applicable and issues a recipient-created tax invoice; tell AMGC if your GST registration changes. Funding is assessable income unless exempted by tax law.