NSW Net Zero Manufacturing Initiative Round 2 - Stream 2: Low Carbon Product Manufacturing

The Low Carbon Product Manufacturing stream helps businesses build local capacity to manufacture critical components for NSW's renewable energy sector. Part of the broader Net Zero Manufacturing Initiative, it aims to drive economic growth, attract investment and establish advanced manufacturing capabilities to support NSW's transition to net zero by 2050.

Funded projects must deliver new or expanded industrial facilities in NSW that produce eligible low carbon products at commercial scale, using technologies within a commercial readiness index (CRI) of 3-6. Products must demonstrate lower lifetime CO2-equivalent emissions compared to conventional alternatives.

Eligible low carbon products include, but are not limited to:

• Building materials (cement, steel, aluminium, cross-laminated timber)
• 'Green' chemicals (ammonia, methanol)
• Biofuels derived from biomass (plant or algae material, or animal waste)
• Power fuels produced with renewable energy
• Inputs for agricultural production (such as fertilisers and animal feeds)

Projects must be based in NSW and be completed within 4 years, or no later than 2032. 

Projects in the Hunter and Illawarra regions are particularly encouraged, as these are areas of strategic interest for the NSW Government.

Grants of $5 million to $30 million are available, covering up to 50% of eligible project costs.

The total funding pool for this stream is $100 million.

Applicants can be based internationally, interstate or in NSW, provided they hold (or are willing to obtain) an ABN and are (or will become) one of the following:

• A company incorporated in Australia;
• A company limited by guarantee;
• An incorporated trustee on behalf of a trust;
• An incorporated association or co-operative; or
• An Aboriginal and Torres Strait Islander Corporation.

Applicants must be registered for GST prior to signing a funding deed and must hold or obtain all required insurances, including $20 million public liability insurance and workers' compensation.

Applications close 25 August 2026.