CleanTech Bites

Fund created to help small manufacturers cut fossil fuels from their production lines

Small Australian manufacturers will be encouraged to extract the fossil fuels from their production lines with a $10 million fund designed to decarbonise forgotten areas within industry. 

Projects involving metal, coatings and even cooking will be eligible for investments under the scheme that could reach into fields as diverse as the food and beverage market and automotive and construction industries. 

The Australian Renewable Energy Agency (ARENA) announced its multimillion-dollar support for the Advanced Manufacturing Growth Centre on Thursday, revealing it would consider projects worth up to $1 million. 

The announcement comes after recent government investments in decarbonisation projects for sustainable fuels and transport, and as the nation strives to reduce greenhouse emissions by up to 70 per cent in 2035. 

Australian owned and operated manufactures with fewer than 200 staff members will be eligible to apply for funding from the program, with company investments matched by the agency. 

Successful applicants would have to prove they could reduce fossil fuel use by electrification or other low-emission technologies, agency chief executive Darren Miller said, and would share their findings with the wider industry. 

“Australia cannot reach net zero without transforming how we make the materials and goods that underpin our economy,” he said. 

“This funding extends ARENA’s work in industrial decarbonisation to reach small and medium-sized manufacturers, helping them deploy practical solutions and demonstrate approaches that can be replicated across the industry.”

Priority would be given to projects involving metal processing, surface treatments, and industrial applications that use steam, centre managing director Dr Jens Goennemann said, to make the biggest environmental impact across the widest field. 

“To advance Australia’s industrial capability, all areas of manufacturing must be engaged,” he said. 

“This fund supports skills development, operational transition to lower emissions, and sharing knowledge to accelerate industry-wide progress.”

The scheme will remain open until December 2027, and projects must be completed before April 2028. 

Australia has a legislated target to reach net zero emissions by 2050, and the Climate Change Authority introduced an interim goal to cut emissions by 62 to 70 per cent in 2035.

AAP

Jennifer Dudley-Nicholson

Journalist covering technology, transport, AI and renewable energy at AAP

Share

Recent Posts

Australia’s most powerful battery set free of massive “shock absorber” contract after delay to Eraring coal closure

Australia's most powerful battery now free to trade its full capacity on market after its…

10 October 2026

Look, no turbines! Natural landscape returns at site of decommissioned wind farm

The site of one of Australia's very first wind farms now shows little evidence of…

10 October 2026

Kudos where it’s due: Australia’s quiet role electrifying the rallying cry for the COP we never got to host

The "35 by 35" electrification goal has an Australian origin that the government seems to…

9 October 2026

The Queensland LNP plan for coal-powered data centres could cost taxpayers $20 billion a pop

If we fail to ensure data centres pay for new renewables and storage to cover…

9 October 2026

Home batteries and time-of-use tariffs may be best combination to steer households away from evening peaks

Home batteries look like resetting the behaviour of households when it comes to responding to…

9 October 2026

South Australia won’t reach its 100 pct net renewables target on schedule, but it won’t be the fault of households

South Australia energy minister hints that the 100 pct net renewables target may not be…

9 October 2026