ARENA National Industrial Transformation Program

Purpose and Program Overview

The ARENA National Industrial Transformation Program is designed to accelerate the decarbonisation of Australian industry. Its core intent is to support projects within industrial facilities that significantly reduce Scope 1 and/or Scope 2 emissions, ensuring alignment with Australia’s 2030 emissions reduction targets and the long-term transition to net zero by 2050.

The program is critical in fostering innovation by improving key decarbonisation technologies’ technology readiness level (TRL) and commercial readiness. These include renewable energy, energy efficiency, and electrification technologies. Furthermore, the grant encourages collaboration, knowledge sharing across industrial sectors, and the upskilling of the industrial workforce in new sustainable activities.

A total funding pool of $40 million has been made available under this program. Grants are offered competitively to entities demonstrating robust projects that deliver measurable and replicable decarbonisation outcomes for industrial processes.

Key Grant Details

Key details for the National Industrial Transformation Program include:

• Grant amount or funding range: Grants of up to $15 million are available per project.
• Application open and close dates: Applications opened on December 20, 2023, and are accepted at any time until the total funding pool is exhausted or the program is otherwise modified by ARENA.
• Eligible industries or business types: The program targets projects that benefit an industrial facility in Australia.
• Required co-contributions: Applicants are expected to match at least the funding sought for the project (minimum 1:1 funding ratio).
• Location/state/territory applicability: Projects must primarily occur in Australia and benefit an industrial facility directly.

Priority Sectors

This grant specifically targets the industrial sector, focusing on existing or planned industrial activities that generate Scope 1 and/or Scope 2 emissions. The program is not open to a broad range of sectors but is strictly focused on projects that deliver industrial decarbonisation and energy efficiency outcomes.

Funding Scope

The funding structure supports technology development and implementation:

• Maximum funding: A single project’s maximum grant is $15 million.
• Categories or streams of funding: Funding supports the development, demonstration, deployment, or commercialisation of:
  • Renewable energy technology (including hybrid and enabling technologies).
  • Electrification technology (replacing fossil fuels or facilitating the use of electricity).
  • Energy efficiency technology (including energy conservation and demand management).
• Project scope focus: Projects must be at Technology Readiness Level (TRL) 4 or higher, excluding initial concept studies, options analysis, or TRL 1-3 research activities unless they are part of a larger commercialisation project.

Eligibility Criteria

Eligible applicants must meet the following key requirements:

• ABN/GST status: Must hold an Australian Business Number (ABN).
• Business structure: Must be one of the following:
  • An Australian entity incorporated under the Corporations Act 2001 (Cth).
  • An Australian State or Territory-owned corporation, or a subsidiary of one.
  • An Australian local government, council, or a related organisation representing local governments.
• Project focus: The project must address Scope 1 and/or Scope 2 emissions of an existing or planned industrial activity.
• Administrative requirement: Applicants must contact the program administrator before formally submitting an Expression of Interest (EOI).

Eligible Activities and Expenses

The grant supports activities integral to the industrial decarbonisation process:

• Activities that significantly reduce Scope 1 and/or Scope 2 emissions through eligible technologies.
• Technology development, demonstration, deployment, and commercialisation of renewable energy, electrification, and energy efficiency solutions.
• Projects that encourage collaboration and knowledge sharing across industrial regions or sectors.
• Activities directly related to the upskilling of the industrial workforce for new decarbonisation initiatives.

Ineligible activities include: Options analysis, projects at new or expanded coal/gas facilities, repair and maintenance, predominately deploying established technologies already proven in Australia, and measures not integral to the industrial process (e.g., general building lighting or HVAC).

Assessment Process

The program is competitive and operates via a structured, two-stage application process:

1. Expression of Interest (EOI): Initial submission.
2. Full Application: By invitation only, following a successful EOI assessment.

Applications will be assessed regularly against the following key evaluation criteria:

• Contribution to the program objectives: How well the project aligns with emissions reduction goals and net zero pathways.
• Applicant capability and capacity: The experience and resources of the entity to successfully deliver the project.
• Project design and methodology: The proposed approach’s clarity, feasibility, and technical merit.
• Financial viability and co-funding commitment: The project’s financial structure and the co-funding contribution.
• Knowledge sharing: The proposed plan is to share insights and outcomes with the broader industry.

Recent Program Updates

The National Industrial Transformation Program is an open, ongoing grant. It commenced on December 20, 2023, and accepts applications continuously. ARENA may implement targeted funding rounds for specific activities from time to time within the overall program structure. The program remains open until the $40 million funding pool is exhausted.

Application Tips

Applicants should prepare a rigorous proposal, financially sound, and strategically aligned:

• Pre-submission contact: Crucially, applicants must contact the program administrator before preparing and submitting an Expression of Interest.
• Demonstrate Net Zero Pathway: Clearly articulate how the project contributes to a complete net zero pathway, avoiding solutions that offer only partial or isolated abatement without a broader strategic context.
• Evidence Replicability: Highlight the path to commercial deployment and the potential for the technology to be replicated across the wider industrial sector.
• Secure Co-funding: Provide evidence that the required minimum 1:1 co-contribution has been secured and is financially viable for the project’s duration.

Where to get help

Consider consulting a grant specialist for a personalised eligibility assessment and expert assistance in preparing a strong, compliant and competitive application. Contact us today, and we will connect you with Australia’s best grant specialist, boasting over 35 years of experience in the industry and a 100% success rate. For official guidelines, application details, templates, and further information, visit the official website of ARENA and other Australian government websites.