TRaCE SME Scaling Suite

Purpose and Program Overview

The SME Scaling Suite is an open-call co-funding initiative administered by the Trailblazer for Recycling and Clean Energy (TRaCE), a collaborative research and commercialisation program established in partnership with UNSW and the University of Newcastle. The program is designed to address identified gaps in capital, research expertise, and engineering support that currently prevent small and medium enterprises (SMEs) operating in Australia’s clean energy and recycling sectors from scaling their technologies to commercial viability.

The initiative brings together three complementary capabilities — seed investment, R&D co-funding, and embedded engineering expertise — into a single coordinated pathway. Rather than requiring businesses to navigate multiple programs independently, TRaCE assesses each applicant’s needs and matches them to one, two, or all three forms of support. This streamlined model is intended to help SMEs move through the critical early-to-growth stage, commonly referred to as the Valley of Death, with greater speed and reduced commercial risk.

A total funding pool of $2.1 million has been allocated for this round of the SME Scaling Suite. The program forms part of TRaCE’s broader objective to accelerate the development, de-risking, and global commercialisation of Australian climate deep-tech, with particular emphasis on technologies that deliver measurable national benefits such as emissions reduction, GDP contribution, job creation, and export of Australian innovation into global markets.

Key Grant Details

• Total funding pool: $2.1 million
• Expressions of Interest (EOI) deadline: 15 June 2026
• Application method: EOI via online form (tally.so/r/VLYzDy)
• Eligible business types: Australian SMEs with an ABN or ICN and annual turnover or operating expenditure of less than AUD $100 million in each of the last two financial years
• Co-contribution required: Yes — for the R&D Voucher stream, matched cash funding is required (not in-kind)
• Location applicability: Available to SMEs across Australia; R&D activities under the R&D Voucher component must be delivered at UNSW or the University of Newcastle
• Relevant sectors: Clean Energy, Green Fuels, Solar Tech, Circular Economy

Priority Sectors

The SME Scaling Suite is exclusively targeted at businesses operating within TRaCE’s four defined strategic themes:

• Solar Tech — Accelerating the integration and scale of solar technologies.
• Clean Energy — Electrifying energy systems and improving storage
• Green Fuels — Scaling up green fuels and chemicals
• Circular Economy — Recycling, reforming, and reusing waste materials

Applicants must clearly identify a target end-user customer within one of these sectors. The program does not extend to businesses outside the recycling and clean energy technology space.

Funding Scope

The SME Scaling Suite is structured around three distinct program components. Applicants may receive support from one, two, or all three, depending on assessment of need and readiness.

1. R&D Vouchers

• Matched co-funding between $10,000 and $50,000 per project (1:1 cash match required)
• Access to world-class researchers and specialised equipment at UNSW and the University of Newcastle
• Maximum project duration of 12 months from start date
• Flexible, negotiated IP arrangements
• Capital works, infrastructure costs, and in-kind contributions are not eligible expenses under this stream

2. Technology Translation Squad (Engineers)

• Dedicated electrical engineers from UNSW embedded in the applicant’s project
• Focused on solving technical challenges in electrical, electronic, and control systems
• Access is provided as an in-kind expert resource, not direct cash funding

3. Early-Stage Seed Fund (Investors)

• Strategic early-stage investment to support transition from technology validation to scale
• Intended for SMEs requiring capital to progress toward commercial deployment
• Specific investment amounts are subject to individual assessment.

Eligibility Criteria

To be considered for the SME Scaling Suite, applicants must meet the following requirements:

• Hold an Australian Business Number (ABN) or Industry Capability Network number (ICN)
• Have an annual turnover or operating expenditure of less than AUD $100 million in each of the last two financial years
• Demonstrate clear strategic alignment with at least one TRaCE research theme (Solar Tech, Clean Energy, Green Fuels, Circular Economy)
• Identify a defined target end-user customer within the relevant sector.
• Show that the proposed project delivers a net benefit to Australia in relation to emissions reduction, GDP contribution, job creation, or export of technology.
• For R&D Voucher applicants: have not received a TRaCE R&D Voucher within the previous two years.
• For R&D Voucher applicants: commit to delivering the project at UNSW or the University of Newcastle, and match funding with cash (not in-kind)
• Conclude R&D Voucher projects within a maximum of 12 months from the project start date.

Eligible Activities and Expenses

Depending on the program component accessed, eligible activities and support include:

• R&D activities conducted in partnership with university researchers at UNSW or the University of Newcastle
• Technology feasibility testing to de-risk early-stage innovation and generate quantifiable evidence for investors and partners
• Engineering problem-solving in the areas of electrical, electronic, and control systems (via the Technology Translation Squad)
• Commercialisation support, including facilitated access to TRaCE’s networks, program facilitators, and research infrastructure
• Early-stage investment capital to support scaling from validation to commercial deployment (via the Seed Fund)

The following activities and expenses are not eligible under the R&D Voucher stream:

• Capital works and expenditure
• Infrastructure costs
• In-kind contributions (cash matching only)

Assessment Process

The SME Scaling Suite operates as a competitive, merit-based program. Expressions of Interest are received on a rolling basis and assessed by TRaCE Program Managers according to fit with TRaCE themes and availability of relevant services. Applicants should allow approximately 10 business days for an outcome following EOI submission.

Key evaluation criteria include:

• Strategic alignment: The degree to which the proposed project aligns with TRaCE’s research themes and national benefit criteria
• Technology readiness and commercial potential: Evidence that the technology has the potential to scale and reach global markets
• SME readiness: The applicant’s capacity to engage with university partners and deliver the project within the required timeframe
• Needs assessment: TRaCE’s determination of which program components (engineers, researchers, investors) are most appropriate to the applicant’s current stage

If an EOI is progressed, the applicant is placed in contact with a dedicated Program Facilitator who assists in preparing a full application, including detailed project purpose, scope, timeline, budget, and deliverables — all developed collaboratively with the TRaCE team.

TRaCE reserves the right to limit the number of approved applications in a given financial year based on demand and the availability of resources.

Recent Program Updates

• The current open call has a revised EOI deadline of 15 June 2026 (the information document previously indicated 25 May 2026; applicants should confirm the current deadline via the official TRaCE website).
• The program page was updated in May 2026 to reflect the extended deadline.
• TRaCE continues to operate the SME Scaling Suite as part of its broader co-funding portfolio, which also includes the Concept to Pilot program, Major R&D Project Funding, and the Early Stage Seed Fund.

Application Tips

Businesses considering applying to the SME Scaling Suite should take the following steps to strengthen their Expression of Interest:

• Confirm eligibility before applying. Review the ABN/ICN, turnover, and sector alignment requirements carefully. Misalignment with TRaCE themes is the most common reason for ineligibility.
• Articulate the national benefit clearly. TRaCE places significant weight on the project’s contribution to Australia’s emissions targets, economic growth, employment, and global technology export. Applicants should quantify these outcomes where possible.
• Define the target end-user. A clearly identified customer or market application within the clean energy or recycling space strengthens the commercial case.
• Understand the matched funding obligation. For R&D Voucher applicants, the cash co-contribution must be confirmed and documented. In-kind contributions are not accepted.
• Prepare evidence of technology readiness. Quantifiable data, prior test results, or validation evidence will support the assessment of project merit and scalability.
• Engage early. Given that TRaCE assesses applications on a rolling basis and support is matched to individual needs, early engagement with the program team can help applicants better understand which components of the suite are most relevant to their stage of development.
• Leverage the partnership advantage. UNSW and the University of Newcastle bring significant R&D infrastructure, sector credibility, and investor networks. Applicants should reflect on how university collaboration would add value to their project proposal.

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 TRaCE SME Scaling Suite at trace.org.au/sme-scaling-suite and other associated Australian government and university websites.