The federal government has unveiled a new $30 million funding program to help “promising” early-stage climate and renewable energy startups turn their ideas into a commercial reality.
The Arena-managed “Launchpad” program will provide targeted grants using a streamlined application process for Australian based startup companies that are developing technologies to lower emissions and accelerate the country’s clean energy transition.
The program will also provide funding to “ecosystem” partners that specialise in providing support for new renewable energy and climate businesses trying to get off the ground.
“Australia has no shortage of talented founders and ambitious ideas, but early-stage funding can be difficult to secure for technologies that take time and capital to develop, particularly for energy and climate startups,” said Darren Miller, Arena CEO.
According to Miller, Launchpad will help the next generation of local renewable energy innovators take the next step towards commercialising their ideas. The program will also address the funding gap that can sometimes prevent promising innovations from escaping the early stages of development.
“Launchpad is an ARENA program designed primarily for early-stage startups,” said Miller.
“We have heard from startups that they need a simpler and faster pathway to smaller amounts of funding that will help them reach their next technical or commercial milestone.”
“By backing innovators early and strengthening the ecosystem around them, we can help more Australian renewable energy technologies move from a great idea to a real-world solution.”
The $30 million in federal funding will be split evenly between the two streams, startup funding and ecosystem funding.
The startup stream will take the form of a competitive funding round, primarily targeting eligible pre-seed to seed-stage companies. Successful applicants will receive $500,000, with up to a further $500,000 available for projects with high capital expenditure requirements.
Arena says it expects this first stream to support between 15 and 30 companies, though each applicant must demonstrate that their innovation aligns with the government agency’s strategic priorities.
Funding for the second stream will focus on ecosystem partners such as accelerators and other organisations delivering multi-year programs helping businesses develop and grow. In this case, grants of up to $5 million will be available through an open and non-competitive funding round.
Applications for the startup funding round close on 28 October 2026, while the ecosystem funding stream will remain open until the available funding allocation is exhausted.
The federal government hopes that the new funding will help commercialise innovations in areas like low-cost solar, energy storage, distributed energy, transport, renewable hydrogen, and green metals.
“Through the new Launchpad program, we’re backing Australian ideas, innovation and ingenuity with timely, targeted investment at the crucial early stage,” said Chris Bowen, federal minister for climate change and energy.
“Australia has a strong research and innovation base, but a good idea needs backing to get off the ground. This funding will help energy and climate startups develop and demonstrate their technology and attract further investment.”
The news was immediately welcomed by proponents of Australia’s clean technology industry.
The Climate Capital Forum, a coalition of financial experts, investors, philanthropists, industry bodies and NGOs, praised the decision, saying that it aligns with its long-standing advocacy to accelerate the deployment of public capital into domestic clean energy innovation.
“Arena has heard the message from the cleantech, renewable energy, and decarbonising innovators that the money needs to get out the door faster and more effectively, so our own companies can succeed in the global market,” said Blair Palese, founder of Climate Capital Forum.
“Australia’s window to lead on cleantech is closing fast, and today’s announcement shows the government is listening.”
Tim Buckley, director of think tank Climate Energy Finance, a member group of Climate Capital Forum, similarly praised the announcement.
“Excellent to see Arena funding being accelerated to stimulate early-stage ventures in the critically important cleantech sectors,” Buckley said.
“This will incentivise more innovation to progress new ideas and ventures up the Technology Readiness Level (TRL) curve towards commercialisation.
“It is great to see the Future Made In Australia initiative working to leverage smart new Australian developments coming out of our world leading universities and innovation hubs.”
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