Funding up to $400 million to support industry in Regional Australia to transition to net zero, and to seize the economic opportunities created by decarbonisation.
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What is the Powering the Regions – Industrial Transformation Stream (PRITS)?
The Powering the Regions – Industrial Transformation Stream (PRITS) was announced by the Australian Government in May 2023 to support industry in Regional Australia to transition to net zero, and to seize the economic opportunities created by decarbonisation.
The Program is a stream under the Powering the Regions Fund and will support Regional industrial decarbonisation.
The ARENA funding available under the Program is up to a total amount of $400 million as committed under the 2023-24 Budget Measure titled Powering the Regions – final design.
Open since November 2023, ARENA has allocated $150 million toward the Round 1 Focus Areas for:
- Supporting the decarbonisation of process heat used in industrial processes; and
- Off-road transport decarbonisation.
PRITS level of support
Grants
- Minimum amount – Not indicated
- Maximum amount
- A decision to offer funding for amounts up to $50 million for Projects will be made by the ARENA Board or the ARENA CEO where the ARENA Board has delegated this power to the CEO.
- Where ARENA proposes to make a grant of over $50 million, approval must also be obtained from the Minister.
- Applicants are expected to at least match the grant funding being sought for the Project.
PRITS important dates
- This is an open, ongoing program which will run until 2027 or until funds are exhausted or otherwise terminated or extended at ARENA’s discretion
- Register your interest here with GrantHelper
PRITS objectives
The Program Objectives are to:
- support Industrial Facilities in Regional Australia to reduce emissions in line with Australia’s 2030 emissions reduction goals and transition to net zero by 2050;
- improve technology readiness and commercial readiness of Renewable Energy Technologies, Energy Efficiency Technologies and Electrification Technologies that will result in a significant reduction in Scope 1 and/or Scope 2 emissions or improve the energy efficiency of an industrial process or processes;
- encourage technology demonstration, collaboration and knowledge sharing across industry and/or regions; and
- support upskilling of existing industrial workforce in new decarbonisation activities
Projects eligible for PRITS support
The Applicant must be able to demonstrate to the satisfaction of ARENA that the Project described in the application:
- addresses the Scope 1 and/or Scope 2 emissions of an existing Industrial Activity;
- has the potential to contribute to the Program Objectives;
- does not include research (Technology Readiness Level (TRL) 1-3 – see Appendix B in the guidelines). For the purpose of clarification, Projects can include research components to the extent these are part of a larger activity focused on the development, demonstration, deployment, or commercialisation of a Renewable Energy Technology, Energy Efficiency Technology or Electrification Technology;
- has not received funding or is currently under assessment for funding from the Powering the Regions Fund – Safeguard Transformation Stream, Critical Inputs to Clean Energy Industries (CICEI) Primary Steel Production Sector Stream or CICEI – Cement, Lime, Alumina and Aluminium Stream; and
- meets any other requirements as specified in the relevant Program Focus Areas or Funding Announcement.
The Applicant must also be able to demonstrate to the satisfaction of ARENA that the Project described in the application is a technology that ARENA can lawfully fund in accordance with the ARENA Act, being some form of:
- Renewable Energy Technology, which includes hybrid technologies and technologies (including enabling technologies) that are related to renewable energy technologies;
- Electrification Technology, which means technologies that use electricity and replace technologies that use fossil fuels or technologies that facilitate the replacement of technologies that use fossil fuels with technologies that use electricity; and/or
- Energy Efficiency Technology, which includes energy conservation technologies, demand management technologies and technologies (including enabling technologies) that are related to energy efficiency technologies.
See the guidelines for full details of projects eligible for PRITS support.
Expenditure eligible for PRITS support
The following is Eligible Expenditure:
- Eligible contract expenditure is the cost of any activities to support the Project performed for the Recipient by another organisation
- Labour expenditure
- administrative expenses
- expenditure for plant installed for the Project at the full delivered cost of the plant
- expenditure on plant used for the construction of a Project, calculated on the basis of hire or lease costs, and running costs directly related to the construction of the Project
- expenditure activities that directly contribute to or enable knowledge including database development, websites, applications and reports
- expenditure on legal, audit and accounting costs related directly to the Project
- expenditure related to the raising of funds for the Project, or the formation of consortia or joint ventures or other partnering arrangements, where such activities can be related directly to the Project
- expenditure such as relevant licence fees or intellectual property purchase costs, where the Applicant needs to access specific technology to undertake the Project
- expenditure related directly to obtaining government approvals to undertake the Project
See the guidelines for full details of expenditure eligible for PRITS support.
Other PRITS important details that you will need to know
Organisations eligible for PRITS support
At the time of applying and throughout the life of the Project, the Applicant must hold an Australian Business Number (ABN) and be:
- an Australian entity incorporated under the Corporations Act 2001 (Cth);
- an Australian State or Territory owned corporation, or a subsidiary of an Australian state or territory owned corporation; or
- an Australian local government or council or an Australian organisation that is purposed with representing and supporting local governments or councils.
See the guidelines for full details of organisations eligible for PRITS support.
Location eligible for PRITS support
The Applicant must demonstrate to the satisfaction of ARENA that the Project:
- will occur in Regional Australia (defined as being outside the Greater Capital City Statistical Areas, and including the Kwinana Industrial Area), subject to ARENA’s discretion; and
- is to the direct benefit of an Industrial Facility which is under the operational control of an entity which meets the Corporate Group Threshold for reporting under the National Greenhouse and Energy Reporting Act 2007 (Cth) (NGER Act). The NGER Act Corporate Group Thresholds are:
- 50kt p.a. or more of Scope 1 and Scope 2 Greenhouse Gas Emissions (CO2-e),
- production of 200 TJ p.a. or more of energy, or
- consumption of 200 TJ p.a. or more of energy.
Projects at any new or expanded coal and gas facilities are ineligible.
Any ARENA-funded expenditure incurred by the Applicant outside of Australia, other than for equipment or materials (including items such as software), must be limited to no more than 10 percent of total ARENA funds, except in exceptional circumstances that must be justified in the Application and agreed to in writing by ARENA.
PRITS assessment criteria
- Criterion A – Contribution to Program Objectives Overview
- Criterion B – Applicant Capability and Capacity
- Criterion C – Project Design and Methodology
- Criterion D – Financial Viability and Co-Funding Commitment
- Criterion E – Knowledge Sharing
See the guidelines for full details of the assessment criteria.
How do I get the PRITS?
Applicants must:
- Read and understand the guidelines.
- Ensure eligibility for the funding. Applicants that do not meet all the eligibility criteria will not be considered.
- Provide complete information requirements.
Information to prepare for the PRITS application
EOIs should include the following information:
- a well-articulated plan for the delivery of the proposed Project. This should be contained in a preliminary Project plan that outlines the objectives, scope, technical design and delivery methodology, budget and knowledge sharing for the Project with sufficient information to demonstrate merit against the criteria set out in Part 4 of these Guidelines. Refer to the Project Plan Guidance on the Program webpage for further information on the expected requirements for a Project plan at EOI stage;
- an indicative ‘Project emissions’ estimate (in Excel format) which includes data on actual and forecast emissions over time (the counterfactual scenario) and the estimated emissions reduction potential of the Project (on implementation), with clearly labelled input assumptions. Where relevant, this should include a scenario which sizes (at a high level) the potential emissions reduction opportunity if replicated at scale in the Industrial Facility, at other similar sites or across industry more broadly;
- an indicative financial model (in Excel format) which includes a breakdown of the major cost items informing the Project budget (with clearly labelled input assumptions and associated level of accuracy) and expected sources of funding (and revenue if relevant);
- evidence of the nature of commitment from the Industrial Facility (if they are not the lead Applicant). Evidence may include term sheets, letters of support (from an appropriately authorised representative) or draft agreements; and
- a knowledge sharing plan which articulates the key knowledge gaps the Project will seek to address.
ARENA may seek supplementary information or clarification from an Applicant or decline to assess the EOI in the instance specified information is not provided to ARENA’s satisfaction.
Applicants may be invited by ARENA to submit a Full Application. The timing and deadlines of the Full Application will be provided by ARENA on invitation to submit a Full Application.
See the guidelines for full details of support materials and other information requirements.
Applying for the PRITS
All applications must be submitted online using ARENA’s Grants Management System, ARENANet, or as otherwise directed by ARENA.
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.
PRITS resources
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