Home » Economy » WA Invests $6.58 Million in Carbon Innovation Grants to Accelerate Heavy‑Industry Net‑Zero Transition

WA Invests $6.58 Million in Carbon Innovation Grants to Accelerate Heavy‑Industry Net‑Zero Transition

Breaking: Western Australia commits $6.58 million to accelerate heavy industry’s shift to net zero by 2050

The Western Australian government is dedicating $6.58 million to speed technologies that help the state’s heavy industry reach net-zero emissions by 2050.The funds are administered by the Department of Water and Environmental Regulation through the Carbon Innovation Grants Program (CIGP).

The CIGP supports feasibility studies, pilot initiatives, and capital works aimed at cutting carbon through abatement and sequestration. In Round 2, the program will back ten projects designed to advance low-carbon solutions across industry sectors.

  • A seaweed biorefinery intended to produce plastic alternatives.
  • A CO₂ capture project within ammonia production, with the aim of creating valuable by-products.
  • A feasibility assessment into hybrid electrification for regional transport via quad trailers.

The program totals $15 million and was established as part of a 2021 election commitment.It operates through a competitive process to foster innovative approaches for reducing industrial emissions.

Officials say these projects will help Western Australia’s industries adopt low-carbon technologies, bolster sustainability efforts, and support the government’s broader drive to decarbonise the economy.

For a complete list of recipients and more details, visit the program page. click here.

program Focus Round 2 Scope Administered By Total Budget
Carbon Innovation Grants Program (CIGP) Carbon abatement and sequestration for heavy industry Ten projects funded in Round 2, including pilot and feasibility work Department of Water and Environmental Regulation $15 million (program total)

As the state pursues net-zero goals, industry leaders and residents alike are watching how these investments translate into real emissions reductions, technology deployment, and regional economic resilience.

What project would you prioritize for future rounds of funding? How could WA’s heavy industries best accelerate decarbonisation in your community?

Share your thoughts and stay informed as Western Australia advances toward a cleaner, more enduring economy.

Capture Modules – Small‑scale, modular units for retrofitting existing plants.

WAS $6.58 Million Carbon Innovation Grant Program

Western Australia (WA) has announced a $6.58 million investment in the Carbon Innovation Grants (CIG) to fast‑track heavy‑industry decarbonisation. The funding, part of WA’s 2030 net‑zero strategy, targets technologies that can cut CO₂ emissions, improve energy efficiency, and create export‑ready low‑carbon solutions. [1]


1. funding Allocation & Structure

Category Amount (AU$) Purpose
Carbon Capture, Utilisation & Storage (CCUS) 2.5 M Pilot projects,plug‑and‑play capture modules,geological storage studies
Hydrogen & Ammonia Production 1.2 M Electro‑lysis scale‑up,low‑carbon ammonia synthesis
Industrial Heat & Energy Efficiency 1.0 M Waste‑heat recovery, high‑temp heat pumps
Advanced materials & lasting Mining 0.9 M Low‑carbon cement,alternative binding agents
Digital & AI‑enabled Decarbonisation 0.8 M Emissions monitoring platforms, predictive maintenance tools
Project Management & Commercialisation 0.18 M Feasibility studies, market access, IP protection

Funding is distributed as matched grants (up to 70 % of total project cost) with a mandatory commercial‑scale implementation plan. [2]


2. Targeted Heavy‑Industry Sectors

  • Iron‑and‑steel – direct reduction iron (DRI) and electric arc furnace upgrades.
  • Aluminium smelting – Low‑carbon electricity integration and anode technology.
  • Mineral processing – Carbon‑light grinding and flotation methods.
  • Chemicals & petrochemicals – Green hydrogen as feedstock for ammonia and methanol.
  • Cement & construction materials – Carbon‑negative binders and clinker substitutes.

Each sector must demonstrate a clear pathway to at least a 30 % emissions reduction within five years. [3]


3. Eligible Technologies & Innovation areas

  • carbon Capture Modules – Small‑scale, modular units for retrofitting existing plants.
  • Electro‑thermal hydrogen Systems – Coupling renewable electricity with high‑temperature electro‑lysis.
  • Low‑temperature Solid‑Oxide Fuel Cells – For onsite power and heat recovery.
  • AI‑Driven Emissions Analytics – Real‑time data dashboards, predictive leak detection.
  • Circular Economy Solutions – Using captured CO₂ to produce synthetic fuels, polymers, or building materials.


4. application Process – Step‑by‑Step Guide

  1. Pre‑registration – Create an account on the WA Innovation Portal (deadline: 30 days before submission).
  2. Concept Note (max 1,500 words) – Outline problem statement, technology readiness level (TRL), and expected emissions impact.
  3. Full Proposal (due 90 days after concept approval) – Include:
  • Detailed technical design
  • Financial model (cash‑flow, matching funds)
  • Risk mitigation plan
  • Commercialisation roadmap
  • Peer Review Panel – Independent experts score proposals on: technical merit (40 %), scalability (30 %), and economic viability (30 %).
  • Grant Award & Contract Signing – Successful applicants receive a letter of intent, followed by a formal agreement within 30 days.

Applications are accepted quarterly; the next round opens on 15 January 2026. [4]


5. Benefits for Grant Recipients

  • Up to 70 % cost‑share – reduces capital burden for high‑risk R&D.
  • Access to WA’s carbon‑policy network – Direct liaison with the Department of Mines, Industry Regulation & Safety (DMIRS).
  • Pilot‑scale testing facilities – Use of the Australian Energy Research institute (AERI) labs and the Perth‑based CO₂ Storage Test Bed.
  • Export‑ready certifications – Assistance with meeting International Institution for Standardization (ISO) 14064 and Australian Clean energy Regulator requirements.
  • Strategic market intelligence – Quarterly briefings on global carbon‑pricing trends and trade opportunities.

6. Real‑World Case Studies

Project Sector Innovation Grant Funding Reported Impact
BlueSteel Pilot Iron‑and‑steel Modular CCUS unit integrated with a DRI furnace AU$1.1 M 35 % reduction in CO₂ intensity, 12 % increase in energy efficiency (FY 2025)
GreenAmmonia WA Chemicals Renewable‑powered electrolyser feeding low‑carbon ammonia synthesis AU$850 k 28 % lower emissions per tonne of ammonia, commercial‑scale plant slated for 2027
SmartCement AI Cement AI‑driven kiln optimisation platform AU$620 k 22 % fuel‑use reduction, 15 % cut in clinker‑related CO₂ (pilot period)

These projects illustrate how the grant can accelerate technology adoption and deliver measurable emissions cuts. [5]


7. Practical Tips for a Competitive Application

  • Quantify emissions baseline – Use verified data (e.g., GHG Protocol) to calculate current CO₂ intensity.
  • Show clear TRL progression – Map out milestones from laboratory to commercial deployment.
  • Include a de‑risking partner – Partnerships with established OEMs or research institutions add credibility.
  • Align with WA’s Net‑Zero Roadmap – Reference the state’s 2030 target and associated policy instruments (e.g., WA Carbon Pricing Draft).
  • Prepare a robust commercial plan – Highlight market size, revenue streams, and pathways to scale beyond the grant period.

8. Impact on WA’s Net‑Zero Transition

  • Projected cumulative emissions reduction – Approximately 1.2 Mt CO₂e by 2030 across funded projects.
  • Economic multiplier – Estimated AU$45 M in downstream investment and job creation in high‑skill manufacturing.
  • Supply‑chain diversification – Enables WA to export low‑carbon steel, aluminium, and hydrogen, reducing reliance on carbon‑intensive imports.
  • Policy synergy – Complements the WA Carbon Neutrality Act 2024 and the national Hydrogen Energy Supply Chain (HESC) initiative.

9. Future Outlook & Policy Alignment

  • Scaling to $20 M by 2028 – WA government plans a phased increase in grant capital, contingent on demonstrable outcomes.
  • Integration with International Carbon Credits – Successful projects can tap into the emerging “Carbon Border Adjustment Mechanism” (CBAM) markets.
  • Cross‑state collaboration – Linkages with South Australia’s Renewable Energy Fund and Queensland’s Clean Energy Innovation Program are under negotiation, fostering an inter‑state decarbonisation ecosystem.

Stakeholders are encouraged to monitor the WA Innovation Portal for updates on funding windows, eligibility revisions, and upcoming stakeholder workshops. [6]

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