Australian small-to-medium sized food and beverage manufacturers looking to reduce emissions and improve energy efficiency stand to benefit from the Australian Renewable Energy Agency’s (ARENA) new $10 million co-investment fund, delivered by the Advanced Manufacturing Growth Centre (AMGC).
The SME Industrial Decarbonisation Fund provides matched funding to support practical emissions reduction and operational modernisation under ARENA’s Advancing Renewables Program.
The Fund prioritises decarbonisation projects across surface treatment, process steam and metals processing areas, offering an opportunity for food and beverage manufacturers to implement electrification and other low-emissions technologies in place of existing fossil fuel processes.
Eligible companies can apply for co-investment for projects valued between $400,000 and $1 million, with lead manufacturers contributing 50 per cent of eligible project costs. To qualify, businesses must currently employ fewer than 200 staff, be Australian-owned, and operate in Australia.
ARENA CEO, Darren Miller, said decarbonising manufacturing is essential to Australia’s energy transition and that targeted support can help smaller businesses take practical steps to cut emissions.
“Australia cannot reach net zero without transforming how we make the materials and goods that underpin our economy,” said Miller.
“This funding extends ARENA’s work in industrial decarbonisation to reach small and medium sized manufacturers, helping them deploy practical solutions and demonstrate approaches that can be replicated across the industry.”
ARENA has provided funding for many food and beverage decarbonisation and electrification projects over the past year, including the solar thermal plant at Mars’ newly opened pet food manufacturing facility in Wodonga, $12 million between McCain Foods, Sugar Australia, and Blackmores to trial and demonstrate low emission technologies, and $1.77 million for 4 Pines Brewing Co to support the electrification of its Brookvale brewhouse.
It has also supported Linfox, NewVolt and Toll Group to deliver electric freight solutions, alongside Coca-Cola Europacific Partners, Woolworths, and Asahi.
AMGC managing director, Dr Jens Goennemann, said the new Fund strengthens both competitiveness and sustainability for Australian manufacturers.
“This important initiative supports manufacturers across a range of industrial sectors, from food and beverage to surface finishing and metal processing, to improve efficiency and future-proof their operations,” said Goennemann.
“To advance Australia’s industrial capability, all areas of manufacturing must be engaged. This Fund supports skills development, operational transition to lower-emissions, and sharing knowledge to accelerate industry wide progress.”
Applications are now open online at amgc.org.au, and will be assessed on a continuous basis until 31 December 2027 or until funding is fully allocated.
