Low Carbon Manufacturing Grant Program

Business Growth Stream

Objectives:

Utilise co-investment funding to support Victorian manufacturers to increase their:

• advanced manufacturing capability to make components and products to support the transition to net zero emissions
• productivity and scale to produce renewable energy and low carbon components and products

Outcomes:

• more low carbon components and products are made in Victoria to support decarbonisation of the economy
• improved capability of Victorian manufacturers to make components or products to support the transition to net zero emissions
• increased sovereign capability and resilience in low carbon product supply chains
• Victorian manufacturers have more capability to participate in low carbon supply chains

Business Readiness Stream

Objectives:

Utilise co-investment funding to support the investment readiness of Victorian manufacturers to:

• introduce new low carbon component or product manufacturing capability
• enter new local and global supply chains for renewable energy and low carbon components
• leverage commercial and government investments and contracts

Outcomes:

• increase in capability and preparedness of Victorian manufacturers to make components or products to support the transition to net zero emissions
• support Victorian manufacturers to capture government and commercial investments and contracts
• support Victorian manufacturers to participate in local and global supply chains

Applicants must meet the following criteria:

• be an eligible legal entity
• hold an ABN
• be an employing business registered for WorkCover insurance with WorkSafe Victoria
• agree to meet any co-contribution requirements with eligible cash expenditure
• be currently engaged in manufacturing or the manufacturing supply chain or demonstrate a genuine commercial connection to the manufacturing supply chain in Victoria
• attest that they:
  1. agree to conduct the proposed activities in Victoria
  2. have met all industrial relations obligations as an employer in accordance with the National Employment Standards
  3. will participate in future program evaluation activity
  4. will provide financial reports for the last three financial years (Business Growth Stream), or
  5. will not procure services from a business services provider with the same parent company, shared governance, or have common directors (Business Readiness Stream)

Incorporated Trustees can apply on behalf of a Trust and individual Partners on behalf of a Partnership, subject to the conditions in the guidelines.

Applicants are eligible to submit only one application for each stream.

Business service providers engaged under the BRS may be publicly funded, not-for-profit enterprises or privately owned.

The following are not eligible to apply:

• individuals
• Commonwealth, state and local government agencies or bodies
• publicly funded research institutions
• industry associations or business chambers
• not-for-profit organisations
• community-based organisations

Joint applications are not permitted.

See the guidelines and FAQ for each stream for full details of eligible and ineligible organisations.

Business Growth Stream

Projects must involve the development or purchase of new equipment, processes, skills, or technology that directly support the making of products or components that will help the Victorian and global transition to net zero emissions.

Eligible projects include:

• the purchase of capital equipment
• technology adoption and associated project expenditure for the manufacture of components and products that support the decarbonisation of the economy

Examples include:

• recycling solar panels
• efficient heat pumps
• electric car charging stations

Business Readiness Stream

Projects should respond to emerging market opportunities associated with the transition to a low carbon economy, specifically translatable to new or scaled manufacturing opportunities for the business.

Eligible projects include:

• commercialisation of new products and components
• market research into local and global supply chains
• capability training for skills transition and uplift
• business case development for major investment or business diversification
• process innovation for low carbon manufacturing

Projects that cannot demonstrate an increase (BGS) or an aim to increase (BRS) the productivity and scale of production of renewable energy and low carbon components or products are ineligible. This includes BGS projects that are limited to manufacturing capital or process improvements to increase efficiency and reduce carbon emissions.

See the guidelines and FAQ for each stream for full details of eligible and ineligible projects.

Business Growth Stream

Eligible expenditure must be a direct cost of the project, and includes:

• capital expenditure (e.g., manufacturing machinery, equipment, and technology)
• other project-related non-capitalised expenditure
• minor building alterations and fit-out costs
• training specific to the technology (external costs only)
• labour and contractors related to the delivery of the project (excluding internal salaries)

Ineligible expenditure includes:

• replacement or a minor upgrade of plant and equipment
• internal salaries
• purchase of vehicles
• routine operational expenses
• building websites, marketing, sales, and promotional activities
• early-stage R&D activities
• entertainment costs
• land acquisition

Business Readiness Stream

Eligible project expenditure must be a direct cost of the project and includes project-related non-capital expenditure required to deliver the project and project-related costs of the business service providers.

Ineligible expenditure includes:

• capital expenditure
• internal costs, salaries or resources
• software and hardware purchases outside of the project
• interpreting and translation
• funding application costs
• basic professional services
• routine maintenance
• entertainment costs
• services relating to import activities
• IP fees and charges
• land acquisition

See the guidelines for each stream for full details of eligible and ineligible costs.

Business Growth Stream

1. Capacity and capability (40%)
   1. increases productivity and scale of production
   2. increases Victorian manufacturing capability
   3. creates environmental benefits
2. Skills development and jobs (10%)
   1. supports the transition of employees to higher value/skilled roles
   2. creates new and retains existing jobs
3. Evidence of market demand (20%)
   1.  meets local and global demand for components or products
4. Need for government support (15%)
   1. enables or brings forward activity
   2. leverages private investment
   3. accelerates time to market
5. Ability to deliver the project (15%)
   1. suitable partners and capabilities to deliver the project
   2. sound budget including confirmation of co-contribution

Business Readiness Stream  

1. How will the project support your capacity to introduce new low carbon components or products to the existing manufacturing base and/or leverage commercial or government investments and contracts (40%)
2. How will the project benefit Victorian manufacturing to reach longer term outcomes (e.g., increase sovereign supply chain capability and resilience, support Victorian manufacturing to participate in global supply chains, and contribute to Victoria’s transition to net zero emissions) (30%)
3. Demonstrate your capacity or capability to successfully implement the project or project findings (e.g., track record of company and resources to be allocated to the project) (10%)
4. Why does the project need Government support to proceed? Detail the risks to the project without Government support (20%)

See the guidelines for each stream for full details of assessment criteria.

You should read and understand the guidelines.

You need to ensure your organisation is eligible for the funding. Organisations that do not meet all of the eligibility criteria outlined above will not be considered.

Successful applicants will demonstrate:

• a manufacturing project that builds capacity and capability to produce renewable energy and low carbon components or products and/or participate in low carbon and renewable energy supply chains
• the economic and environmental benefits of their project
• the necessity of funding and its impact on the timing and scale of activities
• the expertise, partnerships and necessary resources to support successful completion of the project within the agreed timeline
• evidence of market demand (Business Growth Stream)
• the impact on job creation and skills development (Business Growth Stream)

For a list of Low Carbon Manufacturing Grant Program recipients visit business.vic.gov.au/businessgrowth.

Business Growth Stream

A project plan that includes:

• project description
• overview of the implementation timeline
• evidence of sufficient internal resources to allocate to the project
• preferred supplier(s), where applicable
• any project risks and mitigation strategies
• budget summary
• evidence of commercial viability
• evidence of co-contribution
• evidence of financial viability, to include as a minimum:
  1. audited financial reports for the past three financial years
  2. current project plan incorporating financial projections
  3. a marketing or sale plan

Business Readiness Stream

A project plan that includes:

• project description
• if engaging a business service provider:
  1. a description of the services to be provided
  2. a timeline
  3. a final quotation for services to be provided
  4. schedule of expenditure

• any project risks and mitigation strategies
• budget summary
• evidence of co-contribution

A project plan template is provided for each stream.

See the guidelines for each stream for full details of information requirements.

Applications are submitted via the Business Victoria programs web page.

Register your interest here with GrantHelper to explore your alignment with this program and how we can assist you to increase your chances of success.