Funding opportunities to accelerate the decarbonisation of Australia’s regional industrial facilities by supporting projects that reduce emissions through renewable energy, energy efficiency, and electrification solutions.
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What is the Powering the Regions – Industrial Transformation Stream (PRITS)?
The Powering the Regions – Industrial Transformation Stream (ITS) is an initiative by the Australian Renewable Energy Agency (ARENA) aimed at accelerating the decarbonisation of Australia’s regional industrial facilities. In March 2025, ARENA allocated $70 million under ITS Round 2 to support projects involving renewable energy, energy efficiency, and electrification solutions.
Through ITS Round 2, eligible organisations can receive support for feasibility studies, front-end engineering and design (FEED), trials, demonstrations, and commercial deployments of industrial decarbonisation technologies. This funding round focuses on two primary areas:
- Focus Area 1: Innovation in Industrial Decarbonisation
- Focus Area 2: Advancing Commercial Deployment
The overarching goal is to derisk early-stage investments, encourage operational trials in unproven use cases, and advance solutions from demonstration to large-scale adoption across Australian industry.
Powering the Regions – Industrial Transformation Stream level of support
Minimum and Maximum Amount of Funding
- The minimum grant amount under ITS Round 2 is $500,000.
- There is no strict maximum, but ARENA typically provides only the necessary level of grant for a project to proceed.
Co-Contribution
- Applicants must provide at least a matching co-contribution (1:1 ratio or higher) relative to the grant sought.
- Higher co-funding may be required depending on the project’s scale, complexity, and anticipated emissions impact.
Powering the Regions – Industrial Transformation Stream important dates
- Closing date (to new EOI submissions): 15 July 2025.
- Webinar and Q&A Session: 8 April 2025. Prospective applicants are strongly encouraged to attend for detailed guidance and to clarify any queries.
- Register your interest with GrantHelper
Powering the Regions – Industrial Transformation Stream objectives
ITS Round 2 seeks to:
- Accelerate decarbonisation in regional industrial facilities to support Australia’s net zero ambitions.
- Promote technology innovation by helping bring underutilised decarbonisation solutions to commercial readiness.
- Facilitate broader adoption of industrial clean energy technologies where market uptake remains limited.
- Maximise replication potential by demonstrating real-world feasibility and cost-effectiveness, encouraging other sites and sectors to follow suit.
Projects eligible for Powering the Regions – Industrial Transformation Stream support
Under ITS Round 2, projects may include:
1. Feasibility Studies and FEED
- Determining the technical and financial viability of innovative industrial solutions or large-scale electrification.
2. Trials and Demonstrations
- Testing new or unproven industrial decarbonisation technology at real sites (e.g., novel thermal storage, electrified industrial processes).
3. Commercial Deployment
- Scaling up technologies that have been demonstrated successfully but are not yet standard in Australia—such as electric boilers, advanced heat pumps, mechanical vapour recompression, or solar thermal applications.
Ineligible expenditure
Projects and activities not covered under ITS Round 2 include:
- Carbon capture, storage, or utilisation (CCUS) approaches.
- Incineration of non-putrescible waste.
- Routine ‘business-as-usual’ upgrades or maintenance that do not contribute to genuine decarbonisation.
- Very early-stage concept work with no clear path to deployment (e.g., scoping or preliminary assessments only).
- Established, widely proven solutions (e.g., standard solar PV deployments) that lack innovation or a novel application.
- Hybrid or partial decarbonisation solutions without a clear route to full net zero.
See the guidelines for full details of projects eligible for PRITS support.
Other Powering the Regions – Industrial Transformation Stream important details that you will need to know
Organisations eligible for Powering the Regions – Industrial Transformation Stream support
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Regional industrial entities reporting under the National Greenhouse and Energy Reporting (NGER) scheme.
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Technology providers (e.g., equipment manufacturers) partnering with eligible industrial facilities for on-site development or demonstrations.
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Service providers and aggregators implementing low-emission solutions across multiple industrial clients.
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Financing or leasing providers offering business models (e.g. heat-as-a-service) to reduce capital barriers and drive faster decarbonisation.
Powering the Regions – Industrial Transformation Stream assessment criteria
Applications are generally assessed using criteria like:
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Emissions Reduction and Alignment – The scale of potential carbon abatement and synergy with broader net zero goals.
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Technical Feasibility and Innovation – Readiness level, uniqueness, and capacity to accelerate the state-of-the-art in industrial decarbonisation.
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Commercial Viability and Financial Strength – Adequacy of the budget, co-funding commitments, and replicability in other facilities.
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Capability and Delivery – The project team’s expertise, track record, and partnerships that support successful execution.
How do I get the Powering the Regions – Industrial Transformation Stream?
Applicants must:
- Prepare an Expression of Interest (EOI) – Submit a concise overview of your project using ARENANet or the Funding Advice form.
- Engage with ARENA – If the EOI is aligned with PRITS objectives, you may be invited to submit a full application.
- Attend the Q&A Webinar – Scheduled for 8 April 2025, offering comprehensive insights into the application, assessment, and funding process.
Information to prepare for the Powering the Regions – Industrial Transformation Stream application
- Technical Reports – Any feasibility, engineering, or design documents illustrating project viability.
- Financial Analysis – Detailed budget, cost breakdowns, and evidence of co-contributions or external funding sources.
- Implementation Plan – Timeline, milestones, and deliverables (especially if your project combines study + deployment).
- Risk Assessment – Identification of potential obstacles, along with mitigation strategies.
- Support Letters – Endorsements from collaborators, suppliers, or industry stakeholders.
Applying for the Powering the Regions – Industrial Transformation Stream
All applications must be submitted online using ARENA’s Grants Management System, ARENANet, or as otherwise directed by ARENA.
Register your interest with GrantHelper to explore your alignment with this program and how we can assist you to increase your chances of success.
Powering the Regions – Industrial Transformation Stream resources
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