Carbon Capture Technologies Program: Funding to accelerate hard-to-abate emissions solutions

Australia’s transition to net zero will depend on more than renewable energy alone. For sectors where emissions are difficult to abate, including cement, chemicals and steel, emerging carbon capture, utilisation and removal technologies will play a critical role.

The Carbon Capture Technologies Program has been established to accelerate the research, development and demonstration of novel carbon management technologies that address Australia’s hard-to-abate and residual emissions. The program provides grant funding to support pilot and demonstration projects that capture, utilise or remove CO₂ and have the potential to underpin new low emissions or net zero industries.

What technologies are eligible?

The program is focused on novel and emerging technological solutions, rather than conventional or nature-based approaches.

Eligible technologies include, but are not limited to:

• Novel or emerging carbon capture and/or utilisation technologies for hard-to-abate sectors
• Carbon removal technologies such as:
  • Direct air capture
  • Enhanced rock weathering
  • Biomass carbon removal and storage, including durable sequestration of carbon in biochar
  • Mineral carbonation technologies, including capturing carbon in building and other materials.

Land based and nature-based approaches without technological intervention are excluded. This includes afforestation or reforestation, peatland or wetland restoration, and agroforestry.

Program objectives

The Carbon Capture Technologies Program is designed to:

• Accelerate the development of priority CO₂ capture, utilisation and removal technologies
• Support research, development and demonstration activities that advance technological and commercial readiness
• Enable deployment of novel solutions in hard-to-abate industries such as cement, chemicals and steel
• Demonstrate verifiable permanence of CO₂ sequestration across a range of utilisation applications
• Build national capability in emerging carbon removal technologies.

Who can apply?

To be eligible, applicants must:

• Hold an Australian Business Number (ABN)
• Be registered for Goods and Services Tax (GST)

And be one of the following:

• An entity incorporated in Australia
• An incorporated trustee applying on behalf of a trust, where trading activities form a significant or substantial part of the corporation’s activities
• An Australian state or territory government agency or body
• A corporate Commonwealth entity.

Who is not eligible?

Applications will not be accepted from:

• Organisations (or project partners) listed on the National Redress Scheme’s register of institutions that have not joined or indicated intent to join
• Employers with 100 or more employees that have not complied with the Workplace Gender Equality Act 2012
• Individuals or partnerships
• Regional Development Australia Committees
• Unincorporated associations
• Trusts (unless applying through an incorporated trustee).

Partnering and lead organisations

Applicants may partner with one or more eligible organisations. Where a consortium applies, a lead organisation must be nominated.

The lead organisation is responsible for:

• Submitting the application
• Entering into the grant agreement
• Ensuring all project partners comply with the funding rules and grant conditions.

Positioning your project for success

Given the program’s emphasis on technological novelty, commercial readiness and verifiable carbon outcomes, applicants will need to clearly articulate:

• The technical innovation and differentiation of their solution
• How the project advances readiness toward deployment or scale
• The permanence and verification of CO₂ capture, utilisation or removal
• The relevance of the project to hard-to-abate sectors and Australia’s broader decarbonisation goals.

Early planning, robust governance structures and a clear delivery roadmap will be critical to developing a competitive application.

How BDO can help

BDO works with organisations across energy, infrastructure, manufacturing and industrial sectors to navigate complex funding programs and commercialise emerging technologies. Our team can support you with:

• Assessing project eligibility and strategic fit
• Governance arrangements
• Developing grant ready project narratives and commercial cases
• Managing grant obligations and compliance.

If you are considering applying for funding under the Carbon Capture Technologies Program, we can help you position your project to maximise its chances of success.

Contact the R&D and government incentives team to discuss how we can support your funding application.