Funding up to $520 million across the program to accelerate emissions reduction at Queensland metallurgical coal mines, attracting investment and supporting regional jobs and economies.
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What is the Low Emissions Investment Partnerships (LEIP)?
The Low Emissions Investment Partnerships (LEIP) program is a Queensland Government initiative administered by Queensland Treasury to bring forward private investment in emissions reduction at Queensland’s highest-emitting facilities.
- Its initial focus is Queensland metallurgical coal mines covered by the Australian Government’s Safeguard Mechanism.
- The program supports tailored projects addressing each facility’s technological, geological, infrastructure and mine lifecycle circumstances.
- Partnerships are formed through bilateral negotiations using a co-investment model, rather than a competitive grant round.
- Scope 1 emissions are direct emissions from activities at a facility, including coal mine methane and fuel combustion.
Low Emissions Investment Partnerships level of support
Funding Amount
- Total program funding: $520 million across the program.
- Minimum funding per project: no published minimum.
- Maximum funding per project: no published maximum.
- Individual investment amounts are determined through assessment and negotiation, based on the project’s benefits to Queensland.
- The $520 million allocation is the overall program budget, rather than an individual project funding limit.
Co-contribution
- Co-contribution is required: LEIP will not fund 100% of project costs.
- No fixed contribution amount or percentage is published; each project’s funding split is negotiated.
- Proposals should identify private investment, Australian Government funding and other project funding sources.
Funding arrangements
- Most funding is expected to support capital expenditure, although other funding arrangements may be considered.
- Expenditure must be approved as eligible in the partnership agreement.
- Payments are generally milestone-based during construction or upgrades, subject to evidence and conditions.
Low Emissions Investment Partnerships objectives
- Fast-track emissions reductions, preferably beyond Safeguard Mechanism requirements and before 2030.
- Increase resource optimisation and maximise the beneficial use of gas resources.
- Maximise economic opportunities and workforce development in regional Queensland.
- Develop low emissions knowledge within the sector and encourage adoption of low emissions technologies in Queensland.
- Attract private investment and Australian Government funding into low emissions projects that support strong regions.
Projects and expenditure eligible for Low Emissions Investment Partnerships support
Project requirements
- Deliver, or have the potential to deliver, scope 1 emissions reductions at the relevant coal mining facility.
- Be investment ready and technically feasible.
- Align with the program’s objectives.
- Demonstrate an achievable pathway to financing, required approvals and permits, and a final investment decision within two years.
Eligible projects
- Deployment of established emissions reduction technologies.
- Pilots, trials and demonstration projects accelerating commercialisation and scaling of low emissions technologies.
- Front-End Engineering Design studies.
- Infrastructure, including common user infrastructure, supporting emissions reduction activities.
- Other strategies removing non-technical barriers to underused low emissions technologies or demonstrably bringing forward investment.
- Coal mine waste gas capture for power generation or beneficial industrial use.
- Diesel displacement through alternative fuels, electrification or targeted equipment retrofits.
- Ventilation air methane destruction systems.
- Projects must meet eligibility and assessment requirements; preference is given to established strategies with sufficient readiness.
Eligible expenditure
- Approved upfront capital costs, including plant purchase, installation, commissioning and site preparation.
- Approved construction support services, including testing, design and engineering.
- Only costs agreed as eligible in the partnership agreement may receive funding.
Ineligible projects and activities
- Research and development.
- Pre-feasibility and feasibility studies.
- Business case development.
- Decarbonisation plan development.
- Technology development or demonstrations outside an operating mine site.
- Routine plant replacement or upgrades primarily supporting business-as-usual operations.
- Preparatory gas appraisal activities, including drilling and flaring without identified long-term beneficial gas use.
Ineligible expenditure
- Operating expenditure.
- Regulatory or development approval costs.
- Financing and legal costs, statutory fees and charges.
- Insurance and GST.
- Payments to related entities, including group entities.
- Expenditure incurred before the partnership agreement.
- Early project development costs, including feasibility studies, business cases and due diligence.
Other Low Emissions Investment Partnerships important details that you will need to know
Organisations eligible for Low Emissions Investment Partnerships support
- Applicants must be legal entities with an ABN and GST registration, or eligibility to register for both.
- Applicants must own or operate a Queensland coal mining facility covered by the Safeguard Mechanism whose net coal output is predominantly metallurgical coal.
- Alternatively, applicants may have a contract, agreement or similar arrangement with an eligible facility for activities, goods or services directly supporting an eligible project.
- Mining equipment, technology and services providers and other third parties may apply through an eligible mine partnership.
- Treasury may request evidence of the relationship, such as an agreement or letter of support.
- Safeguard facilities emit more than 100,000 tonnes of carbon dioxide equivalent in scope 1 emissions in a financial year.
- Treasury may consider mines expected to become Safeguard facilities or close to the threshold where coverage varies between years.
- Emissions data or projections may be required to substantiate these circumstances.
Low Emissions Investment Partnerships assessment criteria
Projects are assessed against four criteria aligned with the program’s eligibility requirements. No assessment weightings or percentages are published.
1. Emissions reduction outcomes
- The extent to which the project reduces the facility’s scope 1 emissions.
- Other measurable and quantifiable emissions benefits, including reduced reliance on offsets.
- The cost of abatement and the emissions reduction achieved for the investment.
- Proposals should substantiate annual and cumulative reductions with clear emissions types, methodologies and assumptions.
- Evidence should show how outcomes support the preference for abatement beyond Safeguard requirements and before 2030.
2. Ability to deliver the project
- Evidence that the project is feasible.
- The proponent’s financial, technical and operational capacity to deliver successfully.
- An achievable financing pathway and capacity to secure required approvals and permits.
- A credible pathway to a final investment decision within two years.
- Supporting delivery plans, milestones, timeframes, risk management and organisational commitment.
- Technical and commercial evidence supporting the selected technology and delivery approach.
3. Project impact
- Quantifiable economic benefits for regional communities and Queensland, including spending with Queensland businesses.
- Improvements to regional infrastructure, services or facilities.
- Opportunities for the existing regional workforce and workforce development.
- Contributions to the long-term sustainability of the resources industry.
- The impact of the investment partnership on the proponent.
- Proposals should explain how the project supports strong regions and shares low emissions knowledge or technology.
4. Value for money
- The extent to which LEIP investment attracts private sector investment and Australian Government funding.
- Evidence of credible contributions and funding pathways that strengthen the State’s investment.
- Applicants should explain why LEIP support is needed and how it helps bring forward investment.
- Funding requests should be proportionate to the project’s benefits and supported by a clear budget.
How do I get the Low Emissions Investment Partnerships support?
Applicants should demonstrate:
- An eligible Queensland metallurgical coal facility or a documented arrangement with one.
- Measurable scope 1 emissions reductions supported by a credible baseline and calculation methodology.
- Alignment with the program’s emissions, resource optimisation, regional development and technology objectives.
- Technical feasibility and sufficient project readiness.
- Financial, technical and operational capacity to complete and operate the project.
- A pathway to financing, approvals and a final investment decision within two years.
- A realistic budget, funding contributions, milestones and risk management plan.
- Quantifiable regional benefits, including local expenditure, infrastructure and workforce opportunities.
- Value for money through private investment and, where available, Australian Government funding.
- Clear evidence that State investment helps overcome investment barriers or accelerate delivery.
- Organisational commitment and readiness to meet negotiated reporting and performance requirements.
Information to prepare for the Low Emissions Investment Partnerships support
Business and financial information
- Business operations, organisational management and ownership structures.
- Business entity identifiers and relevant supporting documents.
- Financial statements for the previous three financial years.
- Management accounts for the current financial year.
- Evidence of the arrangement with the eligible mine, where applicable.
Project and delivery information
- Project scope, technology, key activities, milestones and delivery timelines.
- Risk management and workforce development plans.
- A detailed project budget and funding pathways.
- Evidence of organisational commitment, such as a board minute.
- Technical and commercial studies, reports and other materials used to support the investment commitment.
- An achievable pathway to required approvals, permits and a final investment decision.
Emissions information
- Forecast annual facility emissions for the relevant assessment period.
- Current Safeguard Mechanism requirements, including the facility’s baseline determination.
- Existing decarbonisation plans or plans to comply with the Safeguard Mechanism.
- Projected annual and cumulative emissions reductions for the relevant period.
- The emissions types addressed and methodologies and assumptions for measurement, verification and reporting.
- A recognised framework, such as the National Greenhouse and Energy Reporting Measurement Determination.
- Forecasts covering the period to 2030 or the project’s lifetime, whichever is later, unless Treasury specifies another period.
Applying for the Low Emissions Investment Partnerships support
Submit an online expression of interest through the program webpage at Queensland Treasury.
Register your interest with GrantHelper to explore your alignment with this grant and how we can assist you to increase your chances of success.
Low Emissions Investment Partnerships resources
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