Funding is available for businesses to help establish new or expanded commercial scale facilities in NSW that manufacture low carbon building materials, chemicals, biofuels, power fuels, or inputs for agricultural production.

Key information

• Status: Open
• Grant amount: From $2,000,000 to $20,000,000
• Application opened: 26 February 2024
• Application closes: 19 April 2024, 5:00 pm

Program objective

The low carbon product manufacturing – construction ready stream is part of the net zero manufacturing initiative. The fund will invest in new or expanded commercial scale facilities in NSW, manufacturing low carbon building materials, chemicals, biofuels, power fuels, or inputs for agricultural production.

The initiative plays a pivotal role in achieving NSW’s commitment to net zero emissions by 2050 through the following 4 objectives:

• drive economic growth across NSW - increase economic activities by providing funding for new or expanded low carbon manufacturing facilities.
• increase investment and employment in new low-carbon industries - attract more investors to engage in the low carbon manufacturing sectors, leading to more job opportunities.
• support a diverse, self-sufficient, resilient, and competitive low-carbon manufacturing sector - foster a dynamic and robust economic landscape, reduce dependency on a single sector, and promote the export of low carbon products and technologies.
• establish new industrial facilities and advanced manufacturing capabilities to help decarbonise NSW’s economy - facilitate the establishment and development of low carbon manufacturing with advanced capabilities, contributing to the overall reduction of NSW’s economy's carbon footprint.

This program is administered by Department of Climate Change, Energy, Environment and Water.

Eligibility

Who can apply

• Applicants can be based internationally*, interstate or in NSW. To be eligible for funding, the lead applicant must:
• hold or be willing to obtain an Australian Business Number (ABN) prior to entering into a funding agreement
• be or will become an entity type listed below prior to entering into a funding agreement:
• a company incorporated in Australia
• a company limited by guarantee
• an incorporated trustee on behalf of a trust
• an incorporated association or a co-operative
• an Aboriginal and/or Torres Strait Islander Corporation registered under the Corporations (Aboriginal and /or Torres Strait Islander) Act 2006.
• be or will become registered for goods and services tax (GST) prior to signing a funding agreement
• hold or obtain all insurances required by law, including $20 million public liability insurance and current worker's compensation policy, prior to entering into a funding agreement
• not be subject to any insolvency event including the subject of an order or resolution for winding up or dissolution (other than for reconstruction or amalgamation) or the appointment of a receiver, liquidator, administer or similar
• not be listed on the Australian Department of Foreign Affairs and Trade (DFAT) sanctions list
• disclose any legal proceedings or investigations including litigation, arbitration, mediation or conciliation that are taking place, pending or (to the best of the applicant's knowledge, after having made proper enquiry) threatened against the applicant or a related body corporate (as defined in the Corporations Act) that may adversely impact the applicant’s ability to fulfil its obligations under the funding agreement
• disclose all Australian Government and/or Australian state territory grants applied for in relation to the proposed project including a history of any grant funding awarded over the last 5 years (including both successful and unsuccessful applications)
• materially comply with all:
• obligations under employment contracts, industrial agreements and awards
• codes of conduct and practice relevant to conditions of service and to the relations between the applicants and the employees employed by the applicant
• applicable Workplace Health and Safety legislation.
• achieve Foreign Investment Review Board (FIRB) approval before commencement of the project should it be required.

Joint applications

Joint applications are permitted provided the lead applicant satisfies the eligibility criteria. The lead applicant must enter into the funding agreement and will be held ultimately responsible for the delivery of the project. The lead applicant must complete the application form and identify all other joint applicants in the application. If invited to submit a detailed application, the application must include a letter of support from each organisation involved in the application. Each letter of support should include:

• details of the joint applicant
• an overview of how the joint applicant will work with the lead applicant and any other joint applicants (if applicable) to successfully complete the proposed project
• an outline of the relevant experience and/or expertise the partner organisation will bring to the application
• the roles and responsibilities of the joint applicant and the resources they will contribute (if applicable)
• the amount and source of any financial contribution to the proposed project (if applicable)
• endorsement by an executive of each joint applicant committing to participation in the proposed project
• details of a nominated contact (management level).

Applicants must ensure they provide correct organisation names and details as this cannot be changed once the proposed project has been assessed. Signed formal agreements between all joint applicants will be required prior to executing the funding agreement.

*International businesses will need an ABN, be registered for GST, have at least $20 million in public liability insurance and be an eligible entity (as listed above) to enter into a funding agreement if successful.

Who the grant is targeted towards

Manufacturing industries

Outcomes for projects funded under this grant

The expected project outcome is a new or expanded commercial scale manufacturing facility for low carbon products. 

What costs you can apply for

Funding may be used for capital expenses (CAPEX) and other costs directly related to the delivery of the project. Eligible costs may only be occurred once both parties have signed a funding agreement.

Eligible costs include:

• purchase of land (if necessary for the project and suitable alternatives to rent do not exist)
• purchasing, constructing, installing and/or commissioning new plant, equipment and/or machinery
• purchasing, constructing, establishing and/or fitting out new facilities, buildings or hubs
• purchasing technology and/or intellectual property (IP) required to undertake the project
• upgrading existing facilities, buildings, plant, equipment, machinery and/or technology where necessary to deliver the project
• external project management and administration costs (up to 10% of project cost).

Who can’t apply

Ineligible applicants include:

• Australian or NSW Government agencies, state owned corporations or statutory authorities
• local government authorities or their Section 355 committees
• organisations that do not have an ABN and are unable to obtain an ABN to enter a funding agreement
• unincorporated associations
• an individual (including sole traders)
• partnerships without nominating a lead applicant
• insolvent businesses.

What costs you can't apply for

The following costs are ineligible:

• funding the day-to-day operations of business
• marketing and promotional costs
• costs incurred before both parties have signed a funding agreement
• cost already funded by other local, state or commonwealth government funding.