The Powering the Regions Fund – Industrial Transformation Stream (Round 3) is now open for applications. This $400 million national program supports industrial facilities in regional Australia to reduce emissions, improve energy efficiency, electrify processes, and adopt low-emissions technologies.
Round 3 focuses on innovation and commercial deployment of clean technologies that accelerate industrial decarbonisation. It offers substantial co-funding opportunities for projects that can deliver measurable emission reductions.
Overview
The Industrial Transformation Stream (ITS) forms part of the Australian Government’s Powering the Regions Fund, designed to ensure Australia’s regions remain competitive as the economy transitions to net zero.
Through this round, ARENA will provide co-funding support for projects that help regional industries trial, demonstrate, or deploy innovative low-emissions solutions.
Projects may target activities such as electrification, renewable integration, fuel switching, process efficiency improvements, or enabling infrastructure.
Who is this for
This grant is designed for industrial operators in regional Australia, including:
- Manufacturing, mining, and mineral processing facilities
- Food and beverage production
- Chemical and material producers
- Heavy industry and large-scale processing sites
Eligible applicants must operate outside Greater Capital City Statistical Areas and have operational control of a facility that reports under the National Greenhouse and Energy Reporting (NGER) Act 2007.
This opportunity is particularly relevant for businesses seeking to:
- Reduce their carbon footprint
- Electrify industrial processes
- Integrate renewable energy and storage solutions
- Improve energy efficiency at scale
Funding Details
- Total funding available: up to $400 million across the program
- Funding type: Competitive, merit-based grant
- Co-contribution: Applicants are expected to match funding at a minimum 1:1 ratio
- Funding streams:
- Innovation in Industrial Decarbonisation (pilot or first-of-kind projects)
- Advancing Commercial Deployment (scaling up proven low-emissions solutions)
Funding is available until the budget is exhausted. Applications are accepted on a rolling basis.
Eligibility
You can apply if you:
- Operate an industrial facility in regional Australia
- Hold an Australian Business Number (ABN)
- Are an Australian-incorporated entity, a state or territory body, local government, or a representative organisation for industrial operators
- Are subject to or associated with an entity that reports under the NGER Act 2007
- Can provide at least 50% co-funding for the total project cost
- Propose a project that demonstrates measurable reductions in Scope 1 or 2 emissions
Applicants with existing funding from other Powering the Regions Fund streams may not be eligible for additional support.
What can the funding be used for
Funding can support a wide range of decarbonisation projects, including:
- Feasibility studies and front-end engineering design (FEED) for industrial decarbonisation
- Demonstration or first-of-kind projects deploying innovative technologies
- Commercial deployment of proven solutions that are not yet widely adopted
- Enabling infrastructure, such as on-site renewables, battery storage, or grid-connection upgrades
How Northmore Gordon can help
Northmore Gordon works with industrial clients to develop and deliver impactful decarbonisation projects.
We can help you:
- Assess project eligibility and emissions-reduction potential
- Prepare strong business cases and financial models
- Structure co-investment and cash-flow
- Manage grant submissions, reporting, and compliance
Our experts can guide you from early feasibility through to successful funding and delivery.
Key Dates
- Applications open: September 2025
- Applications close: When funding is fully allocated (no fixed closing date)
- Application process: Two-stage assessment
- Expression of Interest (EOI)
- Full Application (if invited)
Early applications are encouraged, as funding is competitive and assessed on merit.
How to Apply
Applications are made through ARENA, but Northmore Gordon can manage the entire process on your behalf – from eligibility assessment to full submission preparation.
Our team specialises in industrial energy and carbon management, ensuring your project is well-positioned to secure funding and deliver real emissions reductions.
Ready to Apply?
If your business operates a regional industrial facility and is considering a decarbonisation project, now is the time to act. Contact Northmore Gordon today to confirm your eligibility, discuss your project concept, and start preparing your application.
