Australian small and medium-sized manufacturers will have access to a new $10 million co-investment fund designed to help reduce emissions, improve energy efficiency and replace fossil fuel-based industrial processes with lower-emissions technologies.
Funded by the Australian Renewable Energy Agency (ARENA) through its Advancing Renewables Program and delivered by the Advanced Manufacturing Growth Centre (AMGC), the SME Industrial Decarbonisation Fund will provide matched funding for projects aimed at modernising manufacturing operations while cutting emissions.
The fund will support businesses implementing electrification and other low-emissions technologies, delivering projects with clear pathways to commercial viability and measurable emissions reductions, building workforce capability to operate new equipment and sharing lessons learned to encourage wider industry adoption.
Priority will be given to projects in three manufacturing areas with significant decarbonisation potential – surface treatment, process steam and metals processing.
ARENA chief executive officer Darren Miller said supporting smaller manufacturers was an important part of Australia’s transition to net zero.
“Australia cannot reach net zero without transforming how we make the materials and goods that underpin our economy,” Miller 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.”
Eligible Australian-owned manufacturers employing fewer than 200 staff can apply for co-investment on projects valued between $400,000 and $1 million. Successful applicants must contribute 50 per cent of eligible project costs through matched dollar-for-dollar funding.
AMGC managing director Dr Jens Goennemann said the initiative would help manufacturers strengthen both their competitiveness and sustainability while accelerating industry-wide adoption of lower-emissions technologies.
“This important initiative supports manufacturers across a range of industrial sectors, from food and beverage to surface finishing and metal processing, to improve efficiency and future-proof their operations,” Goennemann said.
“To advance Australia’s industrial capability, all areas of manufacturing must be engaged. This Fund supports skills development, operational transition to lower-emissions, and sharing knowledge to accelerate industry wide progress.”
Applications open in July 2026 and will be assessed continuously until 31 December 2027 or until the available funding has been fully allocated.
Over the past decade, AMGC has facilitated more than 500 national collaborations and co-funded more than 170 industry projects, creating over 4,400 jobs nationwide. Combined industry and government investment of more than $137 million has generated an estimated $1.72 billion in additional national revenue.
