Hunter manufacturers urged to seek share of $225m low-carbon industry fund

newy.com.au – Hunter manufacturers are being urged to apply for a share of $225 million in NSW Government funding aimed at expanding low-carbon manufacturing, attracting private investment and creating skilled jobs.

Applications for the latest grant round opened on Tuesday, with funding targeted at commercial and construction-ready projects that can increase local production of products and materials linked to clean energy and low-carbon industries.

The government says the Hunter, with its established industrial base, manufacturing skills and supply chains, is well placed to compete for the funding as demand grows for renewable energy components, lower-emissions materials and emerging clean technologies.

Eligible projects could include the manufacture of wind towers, solar panels, batteries and transmission cables, as well as low-carbon products such as blended cement, cross-laminated timber and biofuels. The program also covers emerging clean technologies including new-generation renewables and storage, AI-driven agricultural systems and lithium battery recycling.

The new round builds on the Net Zero Manufacturing Initiative, which the government says is already supporting more than 40 projects and about 1000 new jobs across NSW.

In the Hunter, earlier funding included $20 million for Hunter Valley Solar Foundry’s planned large-scale solar panel manufacturing facility at Black Hill, which is expected to create 300 jobs. Other supported projects include $4.85 million for FPR Energy Limited at Mayfield West to scale renewable heat and power technology, $1.1 million for Renewable Metals Pty Ltd at Muswellbrook to support development of NSW’s first lithium battery recycling refinery, and funding for Orica Australia Pty Ltd at Kooragang to explore industrial carbon capture and reuse.

Successful applicants will need to match or exceed the NSW Government contribution dollar-for-dollar, with the funding intended to draw significant private investment into the state.

Minister for Climate Change and Energy Penny Sharpe said the program was designed to support local industry as NSW works towards its legislated emissions targets of a 70 per cent cut by 2035 and net zero by 2050.

“Our investment in low-carbon manufacturing has already supported the creation of around 1,000 jobs, and this boost will power the next wave of industry and opportunity in the Hunter and across NSW,” Ms Sharpe said.

“This additional funding will help ensure NSW does not just import technology, but builds more of it locally to benefit communities and workers.”

Minister for the Hunter Yasmin Catley said the region had a central role to play in the next phase of manufacturing.

“The Hunter has always been an industrial powerhouse for NSW, and this funding is about making sure the region is at the centre of the next generation of manufacturing,” Ms Catley said.

“There is a huge global opportunity in clean energy and low-carbon products, and we want Hunter businesses and workers to be in the box seat.”

Member for Newcastle Tim Crakanthorp said the funding would build on work already under way in the region, including at the Net Zero Manufacturing Centre of Excellence at Tighes Hill TAFE.

“Newcastle is leading the charge in the transition to net zero industries. We have already seen great Newcastle-based net zero manufacturers receive funding from the NSW Labor Government, and the Government is ready to support even more!” he said.

“The Net Zero Manufacturing Centre of Excellence at Tighes Hill TAFE is inspiring and educating the manufacturers of the future. Grant programs like this back in the innovative ideas coming out of the Centre of Excellence.”

More information is available at www.energy.nsw.gov.au/NetZeroManufacturing.