The Australian Renewable Energy Agency (ARENA) has launched the third round of its Industrial Transformation Stream (ITS) program, with $180 million in funding available on an open, ongoing basis until allocations are exhausted.
The ITS program is designed to support regional industrial facilities in cutting emissions and moving towards net zero by 2050. ARENA says the program will back projects that either trial first-of-a-kind solutions or speed up the commercial rollout of technologies that are already technically proven but face market or investment barriers.
“Projects may have significant impact on decarbonising specific sector emissions or have smaller, but highly replicable impact across several sectors, cumulatively contributing to industrial decarbonisation,” ARENA notes in its focus area document.
Two focus areas in Round 3
Round 3 will fund projects under two themes: innovation in industrial decarbonisation and advancing commercial deployment.
The first focus area targets lower-maturity technologies, including new processing routes, electrification of heat, or innovative storage solutions that have not yet been trialled in Australia. Support is intended to de-risk investment, encourage operational testing in live settings, and shorten the path to larger demonstrations.
The second focus area centres on scaling up technologies that have been technically demonstrated but are not yet viable at commercial scale. This could include industrial electrification (such as heat pumps, electric boilers or infrared heating), deployment of alternative processing equipment, large-scale thermal energy storage, or demand management solutions. Funding can also be used to support business models that reduce deployment risks, such as service-based arrangements.
ARENA says funding will be available for a wide range of project stages, from feasibility studies and front-end engineering design (FEED) to trials, demonstrations and deployment. Two-stage projects that combine study and deployment phases will also be considered.
Funding framework
Applicants can seek a minimum of $500,000, with no upper funding cap. However, ARENA expects applicants to at least match the funding requested and will provide only the minimum amount needed for the project to proceed.
Eligible applicants include industrial operators, technology providers working with industry partners, engineering consultancies, service providers rolling out solutions across multiple sites, and financing or leasing providers.
Projects that involve business-as-usual maintenance, very early-stage research, passenger vehicle decarbonisation, or carbon capture and storage will not be considered under the program.
Application process
All applicants must first submit an enquiry through the ARENA Funding Advice form. Depending on the outcome, they may then be invited to lodge an Expression of Interest, followed by a full application.
Round 1 of the program allocated $150 million and Round 2 committed $70 million. With Round 3 now open, ARENA has put the remaining $180 million on the table, completing the $400 million ITS program budget.
