WA Investment Attraction Fund: New Energies Industries (Round 2)

Purpose and Program Overview

The WA Investment Attraction Fund (IAF) – New Energies Industries Funding Stream is designed to accelerate investment in Western Australia’s emerging energy and advanced manufacturing sectors. The program aims to diversify the state’s economy, drive decarbonisation, and create sustainable local employment by supporting projects in critical minerals, green iron and steel, hydrogen, and carbon capture and storage.

This funding stream specifically targets the commercialisation and scaling-up of innovative projects, supply chain development, and advanced manufacturing capabilities in new energies. By attracting both domestic and international businesses to establish or expand operations in WA, the IAF underpins the state’s transition to a low-carbon, high-tech industrial future.

The IAF is administered by the Department of Jobs, Tourism, Science and Innovation, which announced a second round of funding for IAF New Energies Industries. Funding of IAF is allocated on a competitive basis to projects that demonstrate significant economic, environmental, and employment benefits for Western Australia.

Key Grant Details

• Grant amount: Up to 50% of total project costs, capped at $15 million per project
• Application dates: Investment Attraction Fund (IAF) New Energies Industries Funding Stream Round 2 is now open for applications. Closing date is 4 November 2025 at 17:00 AWST
• Eligible industries: Critical minerals, green iron and steel, hydrogen, carbon capture and storage, battery minerals, renewable energy, and related supply chain sectors
• Co-contribution: Minimum 50% cash co-investment required
• Location: Western Australia (WA)

Priority Sectors

• Critical minerals
• Green iron and steel
• Hydrogen
• Carbon capture and storage (CCUS)
• Battery Minerals
• Renewable energy (solar, wind)
• Advanced manufacturing and supply chain services

Funding Scope

• Funding per project: Minimum and maximum not specified; up to 50% of project costs, capped at $15 million per project
• Categories: Supply chain development, advanced manufacturing, science, innovation, and technology development
• Eligible duration: Project timelines are determined individually; funding is milestone-based and linked to project delivery

Eligibility Criteria

• Must hold or be eligible for an Australian Business Number (ABN)
• A legally sound and solvent entity with at least three years of trading history
• Ability to provide financial statements for the past three years
• Capacity to submit a comprehensive business plan and evidence of technical, managerial, and financial capability
• Open to businesses currently operating in WA, those seeking to diversify, and international entities establishing new operations in WA

Eligible Activities and Expenses

• Supply chain development
• Advanced manufacturing and processing
• Commercialisation and scaling-up of new energy technologies
• Capital equipment and infrastructure
• Science, innovation, and technology development
• Relocation or expansion of business operations within Western Australia

Assessment Process

• Competitive grant: Applications are assessed against mandatory and desirable criteria by a panel
• Key criteria:
  • Alignment with priority sectors and diversification opportunities
  • Co-investment and economic benefits to WA
  • Operational and financial capability
  • Contribution to decarbonisation
  • Sustainable job creation and investment readiness
  • Additionality and risk management

Recent Program Updates

• The next funding round is expected to open in late 2025
• Strategic Industries Fund doubled to $1 billion in the 2025–26 WA Budget, supporting increased investment in industrial and clean energy projects
• Ongoing refinement of eligibility and assessment criteria to align with state economic and decarbonisation strategies

Application Tips

• Review all eligibility and assessment criteria in detail before applying
• Prepare audited financial statements and a robust business plan
• Clearly demonstrate project benefits to WA’s economy, employment, and decarbonisation goals
• Engage early with the Department of Jobs, Tourism, Science and Innovation for guidance
• Consider professional grant advisory support to strengthen your application

Where to Get Help

Consider consulting with a professional grant specialist like Pattens Group. We offer initial assessments to review your business’s eligibility and evaluate how well your project aligns with the grant’s objectives. You can also visit the website of the Department of Jobs, Tourism, Science and Innovation for application templates and further guidance.