Grants and funding, Manufacturing News, Regional Manufacturing, Sustainability

ARENA launches $400m program to reduce industrial emissions

ARENA launched the $400m Industrial Transformation Stream to support emissions reduction at industrial facilities in regional Australia.

The Australian Renewable Energy Agency (ARENA) has launched the first funding round of the $400 million Industrial Transformation Stream (ITS) to support emissions reduction at existing industrial facilities in regional Australia.

The Industrial Transformation Stream is part of the Powering the Regions Fund, the design of which was finalised by the
Australian Government in the 2023-24 Federal Budget.

Round one will see $150 million of ITS funding be made available primarily for applications focusing on regional
decarbonisation of industrial process heat and off-road transportation.

The program builds on ARENA’s priority in low emissions metals and previous work under existing programs to drive
innovation and support industry to reduce their emissions.

ARENA has worked closely with the Department of Climate Change, Energy, the Environment and Water throughout the
development of the guidelines for the ITS Program, which will complement other programs under the Powering the
Regions Fund.

To date, ARENA has supported over 660 projects with over $2.25 billion in funding working across the electricity sector
as well as hard to abate sectors such as mining, metals refining and transport. The ITS will continue to build on this
momentum to support Australia’s decarbonisation ambitions.

The Program will support projects ranging from studies to demonstrations and deployment. Opportunities may address a
wide range of solutions, including energy efficiency, electrification, and any renewable energy technologies that support
industrial decarbonisation (e.g. fuel switching to renewable fuels, solar thermal systems or zero emission vehicles).

Enabling technologies such as energy storage or load flexibility / demand management and critical infrastructure to
support on site industrial decarbonisation will also be considered.

Accounting for ~44 per cent of total Australian emissions, the decarbonisation of industry is critical to progressing Australia’s
2030 and 2050 net zero targets. Target sectors with a high emissions abatement opportunity include agriculture,
electricity, gas, water and waste, mining, manufacturing and off-road transport.

ARENA CEO, Darren Miller, said, “Progress in the industrial sector is vital to achieving our emissions reduction goals and
will set Australia up as a renewable energy superpower that will maintain jobs and economic activity in our regions and
capitalise on the world’s shift to green products.

“ARENA is ready to increase its commitment to industrial decarbonisation and provide assistance to help in the clean
energy transition for this sector.”

“Now is the perfect opportunity for the industrial sector to make a meaningful change to adapt and future proof their
businesses as we head towards net zero emissions.”

Minister for climate change and energy, Chris Bowen, said, “When designing our policies to reduce industrial emissions, it
was critical that that we provided support for industries of strategic importance.”

“We’re ensuring that the regions that have always powered Australia are the same regions that will power us into the
future through the global economic transformation to net zero.”

Round 1 of the ITS Focus Areas launched today, with applications accepted from 30th November and run until December
2024, or until funds are exhausted or otherwise updated at ARENA’s discretion. Potential applicants are encouraged to
reach out to ARENA prior to online submission.

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