Powering the Regions Industrial Transformation Stream

The Industrial Transformation Stream (ITS) is open for applications supporting a range of industrial decarbonisation solutions, including but not limited, to electrification, energy efficiency, low emissions processing and fuel switching. Enabling technologies such as energy storage, demand management and critical infrastructure supporting onsite decarbonisation may also be considered. Funding is guided by the Program Focus Areas.

About the program

The objectives of the ITS Program are to:

• Support industrial facilities in regional Australia to reduce emissions in line with Australia’s 2030 emissions reduction goals and transition to net zero by 2050.
• Improve technology readiness and commercial readiness of renewable energy technologies, energy efficiency technologies and electrification technologies that will result in a significant reduction in scope 1 and/or scope 2 emissions or improve the energy efficiency of an industrial process or processes.
• Encourage technology demonstration, collaboration and knowledge sharing across industry and/or regions.
• Support upskilling of existing industrial workforce in new decarbonisation activities.

ITS is now open to applications for Round 3 on an open, ongoing basis. 

Funding will be available until funding is exhausted.

Focus areas - Round 3

Opened in September 2025, ARENA has allocated the remaining $180 million of ITS funding towards Round 3. This is an open, ongoing round where ARENA will remain open to new applications until ITS grant funding is exhausted.

Round 3’s Focus Areas are:

• innovation in industrial decarbonisation; and
• advancing commercial deployment.

The Program can support projects ranging from feasibility studies and front-end engineering and design (FEED) to trials, demonstrations and deployment. Two-stage projects combining a study and subsequent deployment will also be considered.