The Australian Renewable Energy Agency (ARENA) has launched the first funding round of the $400 million Industrial Transformation Stream (ITS) to boost decarbonisation efforts at existing industrial facilities in regional Australia.
The ITS’ first round will roll out $150 million of funding to support projects focused on regional decarbonisation of industrial process heat and off-road transportation.
The ITS is part of the Powering the Regions Fund, which the Australian Government finalised in the 2023-24 Federal Budget. It aligns with ARENA’s priority in low-emissions metals and previous work under existing programs to drive innovation and support the industry in reducing its emissions.
Developed through a collaboration between ARENA and the Department of Climate Change, Energy, the Environment, and Water, the program aims to support a variety of projects ranging from studies to demonstrations and deployment.
These may address various solutions, including energy efficiency, electrification, and any renewable energy technologies that support industrial decarbonisation.
Projects that seek to develop technologies such as energy storage or load flexibility/demand management and critical infrastructure will also be considered, ARENA said in a media release.
According to the agency, the industrial sector accounts for 44 per cent of Australian emissions, making decarbonisation critical to progressing the nation’s 2030 and 2050 net zero goals.
Target sectors with a high emissions abatement opportunity include agriculture, electricity, gas, water and waste, mining, manufacturing, and off-road transport.
“Progress in the industrial sector is vital to achieving our emissions reduction goals and will set Australia up as a renewable energy superpower that will maintain jobs and economic activity in our regions and capitalise on the world’s shift to green products,” said Darren Miller, CEO of ARENA.
“ARENA is ready to increase its commitment to industrial decarbonisation and provide assistance to help in the clean energy transition for this sector. Now is the perfect opportunity for the industrial sector to make a meaningful change to adapt and future-proof their businesses as we head towards net zero emissions,” Miller added.
Applications for Round 1 of the ITS Focus Area will be accepted from 30 November 2023 until December 2024, or until funds are exhausted or otherwise updated at ARENA’s discretion.
Applicants are encouraged to reach out to ARENA before online submission.
For more information about the Industrial Transformation Stream’s program guidelines, visit arena.gov.au.
