NSW Net Zero Manufacturing: Low Carbon Product Stream

Purpose and Program Overview

The Low Carbon Product Manufacturing (LCPM) stream is part of the NSW Net Zero Manufacturing Initiative (NZMI). This stream supports clean manufacturing through the use of low-carbon technologies. Its main intent is to establish local industrial facilities and manufacturing capabilities for low-carbon industries.

The program aims to support new low-carbon industries and accelerate the domestic production of critical low-carbon products. This helps NSW achieve its goal of net zero emissions by 2050.

A total of $200 million has been allocated to Round 2 of the NZMI. Up to $100 million of this total is specifically for the establishment of LCPM capabilities. The initiative boosts economic activity, creates jobs, and builds resilient low-carbon supply chains across the state.

Key Grant Details

• Grant amount or funding range: Up to $100 million is allocated for the LCPM stream. Specific grant amounts per entity are not yet released for Round 2.
• Application open and close dates: The program is currently not open. Round 2 documents are being finalised and the program will open soon.
• Eligible industries or business types: Businesses establishing or expanding manufacturing capabilities for low-carbon products. This includes products like low-carbon concrete and bio-diesel.
• Required co-contributions: Not specified in the current details, but generally expected for large capital projects.
• Location/state/territory applicability: The funded projects must be located in NSW.

Priority Sectors

The grant targets manufacturing projects that produce low-carbon products and materials. The focus is on new and emerging low-carbon industries.

Examples of products include:

• Low-carbon concrete panels.
• Bio-diesel.
• Low-carbon laminate timber.

Funding Scope

The LCPM stream provides funding to support capital works. It focuses on large-scale, market-ready manufacturing projects.

• Minimum and maximum amounts per stream: Specific ranges are not yet detailed for Round 2. Up to $100 million is allocated to the stream as a whole.
• Categories or streams of funding: Funding supports the development of new industrial facilities or the expansion of existing ones. Projects must involve market-ready products ready for commercial scale-up.
• Project timeline or eligible funding duration: Not specified in the current details.

Eligibility Criteria

Detailed eligibility requirements for Round 2 are yet to be finalised. General information suggests applicants must:

• Have a project focused on manufacturing market-ready, low-carbon products in NSW.
• Seek to establish new facilities or expand existing manufacturing capabilities.
• Have products ready to be scaled up.

More comprehensive requirements regarding ABN, GST, and business structure are expected when the official guidelines are published.

Eligible Activities and Expenses

Funding is directed toward major investment in manufacturing infrastructure and capacity.

• Capital equipment: Building new facilities or installing production lines for low-carbon products.
• R&D or tech upgrades: Commercial scale-up of manufacturing processes using low-carbon technologies.
• Focus: Establishing local manufacturing capabilities for specific low-carbon products and materials.

Assessment Process

The Low Carbon Product Manufacturing stream is a competitive grant program. It is not an entitlement. A judging panel assesses applications against other submissions. Applicants must prepare a strong business case for evaluation.

Key criteria are expected to focus on:

• Project merit and commercial viability.
• Strategic alignment with the NSW net zero emissions targets.
• Impact on job creation and economic growth in NSW.

Recent Program Updates

The program is currently preparing for Round 2 funding. Round 2 documents are being finalised and will be available soon. The NSW Government has allocated a total of $200 million to the broader NZMI, with up to $100 million for this LCPM stream.

Application Tips

• Register your interest immediately to receive notification when applications open. Review the full guidelines once they are released.
• Prepare for a competitive process. Applications need significant project analysis and financial forecasting.
• Align your proposal with the government’s objectives. Clearly show how your project supports the transition to net zero and strengthens local supply chains for low-carbon products.
• Demonstrate commercial readiness. Provide forecasts, including a cost-benefit analysis and a project milestone plan.

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 Pattens Group 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 program details, eligibility criteria, and upcoming deadlines, visit the NSW Net Zero Manufacturing Initiative – Low Carbon Product Manufacturing webpage.