NSW Opens $225 Million Net Zero Manufacturing Initiative – Three Major Funding Streams for Industry
Author: Shaun van Dijk
The NSW Government has opened Round 2 of its Net Zero Manufacturing Initiative, committing up to $225 million across three funding streams to accelerate industrial decarbonisation, strengthen sovereign manufacturing capability and support the commercialisation of next-generation clean technologies.
The program provides support across the innovation lifecycle, from piloting and demonstrating emerging clean technologies through to establishment of large-scale manufacturing capabilities to produce renewable energy components and low-carbon products.
Applications are now open for this latest round, with this program representing one of the largest state-based manufacturing and clean technology funding opportunities currently available in Australia.
1. Low Carbon Product Manufacturing Grant
The Low Carbon Product Manufacturing Grant is designed to support the establishment or expansion of commercial-scale manufacturing facilities producing low-carbon products and materials in NSW.
Funding Available
Total funding pool of $100 million
Grants offered between $5 million and $30 million per project (up to 50% of eligible project costs).
Eligibility Snapshot
New or expanded industrial facilities located in NSW
Commercial-scale manufacturing project
Demonstrated emissions reduction relative to conventional incumbent products
Project capable of completion within 4 years and no later than 2032.
Examples of Target Products
Low-carbon building materials (e.g. cement, steel, aluminium, cross-laminated timber)
Green chemicals (e.g. ammonia, methanol)
Biofuels derived from biomass
Renewable power fuels
Agricultural inputs such as fertilisers and animal feed products.
Ideal Applicants
Manufacturers developing low-carbon construction materials, industrial chemicals, fuels, agricultural inputs or other products capable of reducing lifecycle emissions while creating new industrial capability in NSW.
Applications are now open and will close 25 August 2026 (12pm AEST).
2. Renewable Manufacturing Grant
The Renewable Manufacturing Grant aims to strengthen NSW's renewable energy supply chain by supporting local manufacturing of components required for renewable energy generation, storage and transmission infrastructure.
Funding Available
Total funding pool of $100 million
Grants offered between $5 million and $30 million per project (up to 50% of eligible project costs).
Eligibility Snapshot
Manufacturing facility located in NSW
Commercial-scale production of renewable energy sector components
Project capable of completion within 4 years and no later than 2032.
Examples of Target Products
Wind tower components
Solar panel manufacturing
Battery manufacturing and assembly
Transmission infrastructure components and cables
Other products supporting grid-scale renewable energy projects.
Ideal Applicants
Established manufacturers, renewable energy supply chain businesses, and industrial companies seeking to establish local production capability for products required by Australia's rapidly growing renewable energy sector.
Applications are now open and will close 25 August 2026 (12pm AEST).
3. Clean Technology Innovation Grant
The Clean Technology Innovation Grant targets early-stage technologies that have progressed beyond laboratory validation and require piloting, demonstration and commercial readiness activities.
Unlike the two manufacturing streams, this program focuses on accelerating the commercialisation pathway for innovative clean technologies rather than directly funding large-scale manufacturing infrastructure.
Funding Available
Total funding pool of $25 million
Grants offered between $500,000 and $5 million per project (up to 50% of eligible project costs).
Eligibility Snapshot
NSW-based project to advance a clean technology product or solution toward commercialisation
Technology Readiness Level (TRL) 6-9 and Commercial Readiness Index (CRI) of less than 4
Project completed within 3 years
Alignment with NSW decarbonisation opportunity clusters.
Examples of Target Activities
Technology develop and/or prototyping
Construction of specific testing infrastructure
Front end engineering design (FEED)
Product verification and/or technical feasibility studies.
Ideal Applicants
Technology developers, university spin-outs, clean-tech start-ups, scale-ups and innovative SMEs seeking to validate, demonstrate and commercialise emerging low-emissions technologies.
Applications are now open and will close 8 September 2026 (12pm AEST).
Final Thoughts
For innovative manufacturers, renewable energy supply chain participants and clean technology developers, these programs represent a substantial opportunity to accelerate growth, attract investment and establish new capabilities in NSW.
If you're considering an application, now is the time to begin planning. Competitive programs of this scale typically require significant preparation, particularly around technical feasibility, commercial viability, emissions reduction outcomes and co-contribution funding arrangements.
Our team of grant experts is available to help you assess your eligibility and plan a compelling application that provides you with the best chance to secure funding.
As a first step, we also recommend visiting the Net Zero Manufacturing Initiative webpage where guidelines are available, or registering for an upcoming webinar on Monday 22 June 2026 (10.30-11.30am) which will offer more insights into these significant grant opportunities.