NSW Net Zero Manufacturing: Clean Technology Innovation Grant

Purpose and Program Overview

The Clean Technology Innovation (CTI) Grant is a competitive government funding program administered by the NSW Government under the Net Zero Manufacturing Initiative. The program is designed to accelerate the commercialisation of low-emission technologies by supporting businesses in moving innovations from laboratory settings into real-world commercial environments. Funded activities focus on pilot testing, product verification, and early-stage market deployment of technologies that contribute to the decarbonisation of NSW industries.

The Clean Technology Innovation Program targets technologies at an advanced stage of development — specifically those with a verified proof of concept or a lab-proven prototype — and provides co-funding to reduce the financial barriers associated with scaling and commercialisation. By targeting Technology Readiness Levels (TRL) 6 to 9, the grant ensures that supported projects are sufficiently mature to achieve tangible near-term outcomes, while still presenting a meaningful innovation challenge.

For the current round, the NSW Government has made up to $25 million available, with individual grants ranging from $500,000 to $5,000,000 per project. The CTI Grant plays a strategic role in positioning New South Wales as a hub for clean technology development, supporting economic growth, reducing industrial emissions, and building local capability in low-carbon manufacturing and technology sectors.

Key Grant Details

• Funding range: $500,000 to $5,000,000 per project
• Total funding pool: Up to $25 million available for this round
• Application open date: 2 June 2026
• Application close date: 8 September 2026 at 12:00 pm AEST
• Eligible entity types: Incorporated Australian companies; universities and research organisations launching a commercial spin-out; state and local government bodies
• ABN requirement: All applicants must hold a valid Australian Business Number (ABN)
• Co-contribution required: Yes — minimum 1:1 cash co-contribution from non-NSW government sources (in-kind contributions are not eligible)
• Location applicability: New South Wales only — primary project operations and development must be entirely based in NSW
• Project duration: Projects must be completed within 3 years of commencement

Priority Sectors

The CTI Grant does not fund general business activities. Projects must directly align with a Decarbonisation Opportunity Cluster as identified in the NSW Office of the Chief Scientist and Engineer’s Decarbonisation Innovation Study. These clusters represent the key industrial and technology sectors where NSW has the greatest opportunity to reduce emissions through innovation.

Eligible sectors include, but are not limited to, those featuring low-emissions technologies relevant to:

• Industrial process decarbonisation
• Clean energy generation and storage
• Low-emissions manufacturing
• Sustainable materials and resources
• Carbon capture, utilisation, and storage

Applicants should review the Decarbonisation Innovation Study and confirm that their proposed technology aligns with a recognised cluster prior to applying.

Funding Scope

The CTI Grant operates as a single funding stream with project-specific allocations. There are no defined sub-streams or tiered categories within this round.

• Minimum grant amount: $500,000 per project
• Maximum grant amount: $5,000,000 per project
• Total round pool: Up to $25 million
• Funding rate: Up to 50% of eligible project costs
• Co-investment: A minimum 1:1 cash match is required — that is, for every dollar of grant funding received, at least one dollar must be contributed by the applicant from non-NSW Government sources
• Project duration: All funded projects must be completed within 3 years of commencement

In-kind contributions, such as the value of staff time, equipment use, or premises, are not eligible as co-contributions for this program.

Eligibility Criteria

Both the applying organisation and the proposed project must satisfy all of the following requirements to be considered eligible for funding.

Organisation Eligibility

• Must hold a valid Australian Business Number (ABN)
• Must be one of the following entity types: an incorporated Australian company; a university or research organisation establishing a commercial spin-out; or a state or local government body
• Primary project operations and development must be located entirely within New South Wales

Project Eligibility

• Technology Readiness Level (TRL): The project must have a TRL of 6 to 9, indicating that the technology has a verified proof-of-concept or lab-proven prototype and is ready for real-world scaling
• Commercial Readiness Index (CRI): The project must have a CRI below 4, confirming that the technology is not yet fully commercialised or widespread in the market
• Strategic alignment: The project must directly align with a Decarbonisation Opportunity Cluster identified in the Office of the Chief Scientist and Engineer’s Decarbonisation Innovation Study
• Geography: All primary activities must be conducted within New South Wales
• Co-investment: Applicants must demonstrate a minimum 1:1 cash co-contribution from non-NSW Government sources

Eligible Activities and Expenses

Grant funding is specifically intended to support the transition of lab-stage innovations into commercial market environments. The following activities are eligible for funding under this program:

• Prototyping, product verification, and full-scale operational testing
• Construction of project-specific testing infrastructure
• Front End Engineering Design (FEED) studies and technical viability assessments
• Scaling up production processes or establishing pilot manufacturing facilities

Activities that are not related to the piloting, testing, or commercialisation of a clean technology, or that do not meet the required TRL and CRI thresholds, are not eligible for funding. Routine business operations, general administrative costs, and activities already completed or underway prior to grant approval are also excluded.

Assessment Process

The CTI Grant is a competitive program. Applications are assessed against merit-based criteria, and funding is not guaranteed simply by meeting eligibility requirements. The number and quality of eligible applications will determine project outcomes within the available funding pool.

While the full assessment criteria are detailed in the official program guidelines, applicants should expect evaluation across the following dimensions:

• Project merit: The technical quality, innovation level, and feasibility of the proposed project, including evidence of TRL and CRI ratings
• Strategic alignment: The degree to which the project addresses a priority Decarbonisation Opportunity Cluster and contributes to NSW’s net zero objectives
• Value for money: The efficiency and impact of the requested grant funding relative to projected outcomes, including commercialisation potential and emissions reduction benefits
• Organisational capability: The applicant’s demonstrated ability to deliver the project within the proposed timeline and budget
• Co-investment: The strength and credibility of the cash co-contribution commitment from non-NSW Government sources

Applications are submitted through the NSW Energy Grant Management System (GMS), and all supporting documentation — including technical proposals, financial breakdowns, and evidence of co-contributions — must be submitted before the closing deadline.

Recent Program Updates

Round 2 of the Clean Technology Innovation Grant launched on 2 June 2026, with applications closing on 8 September 2026 at 12:00 pm AEST. Up to $25 million has been allocated for this round under the Net Zero Manufacturing Initiative. The current round reflects the NSW Government’s continued commitment to accelerating industrial decarbonisation and the commercialisation of clean technology. Businesses that were unsuccessful or did not apply in earlier rounds are encouraged to review the updated guidelines and submit a revised or new application for this round.

Application Tips

Applicants are encouraged to review the following guidance before commencing their application:

• Read the full program guidelines available on the NSW Energy Grant Management System (GMS) and confirm that both the organisation and the project meet all eligibility requirements before investing time in a full application
• Confirm that the project’s Technology Readiness Level (TRL) is between 6 and 9 and that the Commercial Readiness Index (CRI) is below 4, as these are mandatory thresholds — projects outside these parameters will not be considered
• Clearly map the proposed technology to a specific Decarbonisation Opportunity Cluster from the Office of the Chief Scientist and Engineer’s Decarbonisation Innovation Study — vague or indirect alignment will weaken the application
• Secure and document cash co-contribution commitments early in the preparation process, as in-kind contributions are explicitly excluded and the 1:1 cash match requirement is non-negotiable
• Prepare detailed financial breakdowns and project budgets that demonstrate value for money and clearly distinguish eligible from ineligible expenditure
• Articulate measurable outcomes, including projected emissions reductions, commercialisation milestones, and economic benefits to NSW
• Register on the NSW Energy Grant Management System (GMS) and familiarise with the system’s requirements well in advance of the September closing date
• Allow sufficient time for internal approvals, co-investor sign-offs, and document compilation — last-minute submissions carry the risk of incomplete or insufficient supporting evidence

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 Pattens Group today and connect 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 NSW Energy Grant Management System (GMS) and associated NSW Government websites.