Carbon Capture Technologies Program – Round 2

Purpose and Program Overview

Carbon Capture Technologies Program is an Australian Government initiative administered by the Department of Climate Change, Energy, the Environment and Water (DCCEEW). The program provides competitive grant funding to accelerate the research, development, and demonstration of novel and emerging carbon capture, utilisation, and removal (CCUS/CDR) technologies. Its primary objective is to address Australia’s hard-to-abate industrial emissions and support the national pathway to net-zero by 2050.

The program focuses specifically on pilot and demonstration-scale projects that have the potential to create new, low-emissions or net-zero industries. It targets sectors where decarbonisation is technically and economically challenging, such as cement, chemicals, and steel. Eligible technologies include those that capture CO₂, convert it into valuable products, or permanently sequester it through novel means.

With a total funding pool of $32.6 million available over the program’s eight-year duration (2023–24 to 2030–31), Round 2 provides grants of up to $10 million per project. The program plays a strategic role in advancing Australia’s commercial readiness for emerging carbon management technologies, building domestic capability, and supporting the transition to a low-emissions economy.

Key Grant Details

• Grant amount: $1 million to $10 million per project
• Application closing date: Wednesday, 6 May 2026, 5:00 PM AEST
• Eligible applicants: Australian-incorporated entities, incorporated trustees on behalf of eligible trusts, Australian state/territory government agencies or bodies, and corporate Commonwealth entities
• Co-contribution required: Yes — applicants must fund at least 25% of eligible project expenditure (grant covers up to 75%)
• Minimum eligible expenditure: $2 million
• Location: Projects must be located in Australia
• ABN and GST registration: Required
• Program duration: Projects must be completed by 31 March 2031

Priority Sectors

The program explicitly targets hard-to-abate industrial sectors where conventional emission reduction approaches are insufficient. Priority sectors include:

• Cement
• Chemicals
• Steel

The program also supports novel carbon removal technologies that may apply across a broader industrial base, including biochar production, direct air capture, and mineral carbonation. Conventional, purely biological, or land-based carbon approaches — such as afforestation, reforestation, peatland restoration, and agroforestry — are not eligible under this program.

Funding Scope

The program operates as a single funding stream focused on pilot and demonstration-scale projects. There are no separately defined sub-streams or categories. Key parameters include:

• Minimum grant amount: $1 million
• Maximum grant amount: $10 million
• Maximum government contribution: 75% of eligible project expenditure
• Minimum applicant co-contribution: 25% of the eligible project expenditure
• Minimum total eligible project expenditure: $2 million
• Project completion deadline: 31 March 2031
• Program operational period: 2023–24 to 2030–31 (8 years)
• Total program funding: $32.6 million

Projects that are solely feasibility or engineering studies are not eligible. The project must involve substantive research, development, and demonstration activity.

Eligibility Criteria

Applicants must satisfy all of the following requirements:

Entity requirements:

• Must hold a valid Australian Business Number (ABN)
• Must be registered for Goods and Services Tax (GST)
• Must be one of the following entity types:
  • A corporation incorporated in Australia
  • An incorporated trustee on behalf of an eligible trust
  • An Australian state or territory government agency or body
  • A corporate Commonwealth entity

Entities that are not eligible include:

• Individuals
• Partnerships
• Unincorporated associations
• Trusts (except where an incorporated trustee applies on behalf of the trust)
• Regional Development Australia Committees
• Organisations listed on the National Redress Scheme’s non-participating institutions list
• Employers of 100 or more employees that have not complied with the Workplace Gender Equality Act 2012

Project requirements:

• The project must be located in Australia.
• Must aim to reduce, utilise, and/or remove greenhouse gas emissions
• Must involve research, development, and demonstration of novel or emerging CO₂ capture, utilisation, or removal technologies
• Must not solely be a feasibility or engineering study
• Must have at least $2 million in eligible expenditure
• Must not be a project previously funded under Round 1 of this program
• Must be completed by 31 March 2031

Eligible Activities and Expenses

Grant funds may be used to support the following activities:

• Design, construction, testing, or R&D of CO₂ capture, carbon capture and utilisation (CCU), or novel carbon dioxide removal (CDR) technologies
• Equipment and software, including prototype, pilot, or demonstration facilities
• Process or system design and engineering, including feasibility and engineering design studies (where these form part of a broader eligible project)

Examples of eligible technologies include:

• Novel or emerging carbon capture and/or utilisation technologies for hard-to-abate sectors
• Direct air capture (DAC)
• Enhanced rock weathering
• Biomass carbon removal and storage, including durable sequestration of carbon in biochar
• Mineral carbonation technology (e.g. capturing carbon in building materials)

Assessment Process

This is a competitive grant program. Applications are assessed against defined criteria, and not all eligible applicants will receive funding. The Senior Executive in the Department of Climate Change, Energy, the Environment and Water makes the final funding decision.

Assessment criteria and weightings:

Assessment Criterion	Points
Alignment with program objectives	50
Capacity, capability, and resources to deliver the project	30
Impact of the grant funding on the project	20
Total	100

Applications are first assessed for eligibility before being evaluated against the above criteria. The amount of supporting evidence provided should be proportionate to the size, complexity, and grant amount requested.

Recent Program Updates

• Round 2 is currently open, with a closing date of 6 May 2026.
• The program has been updated from Round 1 — projects previously funded under Round 1 are not eligible for Round 2.
• The maximum grant amount per project has been set at $10 million for Round 2 (note: the program guidelines from business.gov.au specify up to $10 million, which supersedes earlier references to $15 million in broader program documentation).
• The application process for Round 2 is a direct application model via the online Business Grants Portal — applicants should review the current grant opportunity guidelines and sample application form available on the official website before commencing.

Application Tips

Prospective applicants are advised to consider the following when preparing their submission:

• Review the grant opportunity guidelines thoroughly before commencing an application. Eligibility requirements and assessment criteria are clearly defined and non-negotiable.
• Download and review the sample application form prior to starting to understand the scope of information required and plan accordingly.
• Prepare supporting evidence early, including financial statements demonstrating co-contribution capacity (minimum 25%), project plans, and technical documentation.
• Align the project narrative directly with the three assessment criteria, with particular attention to Criterion 1 (alignment with program objectives), which carries 50% of the total score.
• Demonstrate technological novelty — the program specifically requires that proposed technologies be novel or emerging. Conventional land-based or biological approaches will not be considered.
• Quantify project outcomes wherever possible, including projected CO₂ reduction volumes, commercial readiness milestones, and industry applicability.
• Do not submit an incomplete application — once submitted, corrections cannot be made. Ensure all required fields, declarations, and attachments are complete before final submission.
• Apply well before the closing date to allow time to resolve any technical issues with the portal.

Where to Get Help

Consider consulting a grant specialist like Pattens Group for a personalised eligibility assessment and expert assistance in preparing a strong, compliant, and competitive application. Contact us today and get connected 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 the Carbon Capture Technologies Program at business.gov.au and other associated Australian Government websites