New South Wales Net Zero Manufacturing Initiative: Round Two open now
New South Wales Net Zero Manufacturing Initiative: Round Two open now
The New South Wales (NSW) Government has opened applications for Round Two of the Net Zero Manufacturing Initiative, creating a significant funding opportunity for businesses investing in low carbon and renewable manufacturing capability in New South Wales. The initiative is designed to support projects that can help decarbonise industry, strengthen domestic supply chains and build the technologies and products needed for the State’s transition to net zero by 2050.
Applications are now open across three streams:
- Clean technology innovation grant
- Low carbon product manufacturing grant
- Renewable manufacturing grant.
For manufacturers, project developers and businesses commercialising low emissions technologies, the program signals strong policy support for industrial decarbonisation and clean manufacturing in New South Wales. However, each stream is intended for a different stage of project maturity and a different type of manufacturing outcome. Understanding where your project fits will be critical to preparing a competitive application.
How the initiative is structured
The Net Zero Manufacturing Initiative is intended to support different parts of the clean manufacturing value chain. The three streams target early-stage clean technology development, commercial-scale low carbon product manufacturing, and manufacturing capability for the renewable energy supply chain.
1. Clean technology innovation grant
The Clean technology innovation grant is designed to support technologies that can help reduce industrial emissions and accelerate the transition to low carbon manufacturing. This stream is likely to be most relevant for businesses developing or advancing new clean technologies that are not yet at full commercial deployment, but have the potential to support decarbonisation at scale.
Funding will be provided to eligible NSW businesses to pilot and demonstrate lab-proven clean technologies, test technical and commercial feasibility, accelerate and expand research, and develop and commercialise low emissions technologies that demonstrate potential to be scalable, replicable and cost-effective.
These organisations can include but are not limited to:
- Small-to-medium enterprises (SMEs)
- Technology developers
- Innovators
- Start-ups
- Research organisations
- Academia with a spin-out company.
The total funding pool is up to $25 million, with grant funding available between $500,000 and $5 million per project for up to 50 per cent of eligible costs. Applications for this stream close on 8 September 2026 at 12pm AEST.
2. Low carbon product manufacturing grant
The Low carbon product manufacturing grant is aimed at businesses building new or expanded commercial-scale facilities in New South Wales to manufacture eligible low carbon products. This stream supports projects manufacturing products such as low carbon building materials, ‘green’ chemicals, biofuels, power fuels and agricultural inputs.
The stream is intended to establish new industrial facilities and advanced manufacturing capability that can help decarbonise the NSW economy while also supporting jobs, investment and industry resilience.
The total funding pool is up to $100 million, with grant funding available between $5 million and $30 million available per project for up to 50 per cent of eligible project costs. Applications for this stream close on 25 August 2026 at 12pm AEST.
3. Renewable manufacturing grant
The Renewable manufacturing grant is directed toward businesses looking to manufacture components, equipment or inputs that support New South Wales’s emerging renewable energy sector. This stream is part of the state’s effort to build local manufacturing capacity and capability for critical renewable energy supply chain needs.
Types of eligible infrastructure include components suitable for grid-scale renewable energy generation, storage and transmission, such as:
- Wind towers
- Solar panels
- Batteries
- Transmission cables.
The total funding pool is up to $100 million, with grant funding available between $5 million and $30 million available per project for up to 50 per cent of eligible project costs. Applications for this stream close on 25 August 2026 at 12pm AEST.
BDO comment
Businesses considering the broader initiative should review the relevant stream guidelines carefully and confirm stream-specific closing dates, eligibility requirements and application steps before preparing a submission.
For businesses with plans to invest in low emissions manufacturing, new industrial capability or renewable supply chain participation, the initiative may offer a meaningful opportunity to accelerate project delivery. The strongest applications are likely to be those that can clearly show why the project matters commercially, how it supports the State’s net zero objectives, and why government support is needed to bring it forward in New South Wales.
How BDO can help
BDO’s R&D and government incentives team can support businesses in assessing eligibility, strengthening commercial cases and preparing a well-supported application. We can also help applicants understand complex program requirements and improve the overall quality and competitiveness of your application. Contact us for support.
