$80m grants for NSW industry decarbonisation

The NSW Government has provided $80 million to help mining and manufacturing industries cut emissions as the state heads towards net zero.

Two major grant programs are now open as part of the new Industrial Decarbonisation Initiative to support industries to shrink their carbon footprint and accelerate the transition to sustainable energy sources.

The $40 million Renewable Gas Production Program grant will boost the production of biomethane gas, supporting the shift to renewable energy by providing a cleaner fuel supply for the state.

The new grant will co-fund up to 50% of the costs to develop commercially mature biomethane production that can turn the state’s waste into energy.

Eligible projects must inject at least 0.1 petajoules (PJ) of biomethane into the network each year by June 2030, supporting the program’s aim to generate enough renewable gas to replace almost 4% of the natural gas currently used by industry.

The $40 million Low Emissions Industry Program grant will support NSW manufacturing and mining facilities reporting to the National Greenhouse Gas Emissions Reporting Scheme emitting less than 100, 000 tC0₂ per year to deliver practical, onsite emissions reductions projects including:

• fuel switching: replacing carbon-intensive energy sources with lower-carbon or zero-carbon alternatives;
• heat pump installations: shifting industrial heating from fossil fuels to clean, efficient, electricity-driven technology;
• facility retrofits and process improvements: upgrading existing infrastructure and optimising operations to reduce emissions, rather than building new facilities from scratch.
   

The Industrial Decarbonisation Initiative streamlines the NSW Government’s industrial emissions reduction grants to make it easier for businesses to apply for grants and deliver projects.

“Decarbonising industry is critical to reaching net zero while protecting the health of our communities and environment,” said Executive Director of Business and Industry Decarbonisation Jenny Merkley.

“As a streamlined gateway to NSW Government funding, the Industrial Decarbonisation Initiative plays a key role in the broader energy transition, backing solutions that can be delivered now rather than years down the track.

“Under the new Low Emissions Industry Program, manufacturers and mining operators have real opportunities to lower energy costs, strengthen performance and implement proven solutions that reduce carbon pollution.

“[Meanwhile], the Renewable Gas Production Program will help scale biomethane production which is a practical and affordable solution to put our state’s waste to work, capturing gas that would otherwise enter the atmosphere, and converting it into a cleaner fuel supply.”

Applications for both grants are now open. To apply or for more information please visit the NSW Climate and Energy Action website.

Image credit: iStock.com/PonyWang