MGA Thermal, a University of Newcastle spin-out headquartered in the Hunter, has secured up to $3.25 million from the Australian Renewable Energy Agency (ARENA) to support a program of Front-End Engineering and Design (FEED) studies for industrial customers.
The funding, delivered through ARENA’s Powering the Regions: Industrial Transformation Stream, will subsidise the cost of detailed engineering work for up to five industrial partners considering deployment of the company’s thermal energy storage technology.
From research to industrial application
The FEED program will provide site-specific engineering, integration planning and cost assessments to determine how thermal storage can be incorporated into facilities with large process heat demand.
At the centre of the system is MGA Thermal’s patented MGA Block technology, which stores renewable energy as latent heat and releases it as high-temperature process heat when required. The studies are expected to begin in early 2026 and will inform final investment decisions for potential projects.
Addressing early-stage barriers for industry
MGA Thermal says the grant is intended to reduce the upfront cost of properly evaluating new energy systems, a barrier often faced by manufacturers and heavy industry.
Will Furness, Business Development Manager at MGA Thermal, said the funding enables deeper collaboration with potential project partners.
“For many industrials, a challenge is securing the budget required to properly evaluate technologies. ARENA’s support lowers the cost of FEED studies and allows us to work closely with partners to build robust, site-specific business cases that demonstrate the commercial and operational value of thermal storage. It’s a catalyst for real, near-term action.”
Supporting industrial heat decarbonisation
ARENA says the project targets industrial process heat, an area that presents technical and commercial challenges for emissions reduction.
ARENA Chief Executive Officer Darren Miller said the studies are intended to build confidence in thermal energy storage as a deployable option.
“Decarbonising industrial process heat is critical to Australia’s net zero transition, but it remains one of the hardest problems to solve,” Mr Miller said.
“By supporting detailed FEED studies, this project could give industrial customers greater confidence in the technical and commercial viability of TES, helping move promising projects closer to investment and deployment.”
Sharing lessons beyond the Hunter
Findings from the FEED studies will be shared with industry to outline opportunities, barriers and potential pathways for wider adoption. ARENA says the initiative forms part of its broader work to support technologies that can reduce emissions while maintaining industrial competitiveness and energy reliability.
The program will focus on facilities where large heat loads currently rely on fossil fuels, providing a pathway to assess how renewable electricity and thermal storage could be integrated into existing operations.
