ARENA and AMGC launch $10M SME Industrial Decarbonisation Fund
What's the deal? The Australian Renewable Energy AgencyDealroom has a profile for this one. Try Dealroom → (ARENA) and the Advanced Manufacturing Growth CentreDealroom has a profile for this one. Try Dealroom → (AMGC) have unveiled a $10 million co-investment fund to help small and medium-sized manufacturers cut emissions and improve energy efficiency. The SME Industrial Decarbonisation Fund, backed by ARENA's Advancing Renewables Program and run by AMGC, provides matched funding for projects that modernise operations while moving away from fossil fuel-based processes.
Who qualifies? Australian-owned manufacturers employing fewer than 200 staff can apply for projects valued between $400,000 and $1 million. Successful applicants must contribute 50 percent of eligible costs on a dollar-for-dollar basis.
What's the focus? Priority goes to three areas identified as having significant decarbonisation potential: surface treatment, including powder coating and galvanising; process steam applications such as sterilisation, drying, and cooking; and metals processing. The fund also targets electrification, workforce skills, and compliance capability.
Why now? ARENA chief executive officer Darren Miller said industrial decarbonisation is central to Australia's net zero transition. “Australia cannot reach net zero without transforming how we make the materials and goods that underpin our economy,” Miller said.
What's the endgame? AMGC managing director Dr Jens Goennemann said the initiative aims to strengthen both competitiveness and sustainability. “This important initiative supports manufacturers across a range of industrial sectors, from food and beverage to surface finishing and metal processing, to improve efficiency and future-proof their operations,” he said.
By the numbers: AMGC says it has facilitated more than 500 national collaborations and co-funded over 170 manufacturing projects in the past decade. These have created more than 4,400 jobs, involved over $137 million in combined industry and government investment, and generated an estimated $1.72 billion in additional national revenue.
The signal: The fund extends ARENA's industrial decarbonisation work to smaller manufacturers, a segment often left out of large-scale energy transition programs. Applications open in July 2026 and run on a rolling basis until December 31, 2027, or until funds are allocated.
Read more: Australian Manufacturing
