Funding is available for businesses to pilot and demonstrate lab-proven clean technologies to accelerate their commercial readiness.
Key information
- Status: Open
- Grant amount: From $500,000 to $5,000,000
- Application opened: 2 June 2026
- Application closes: 8 September 2026, 12:00 pm
Program objective
The clean technology innovation grant is part of the net zero manufacturing initiative. The grant supports commercialisation of lab-proven climate technologies that have potential to significantly reduce emissions in NSW and are aligned to the priority areas as identified in the NSW Office of the Chief Scientist and Engineer’s Decarbonisation Innovation Study. The key objectives are to:
- repeatedly test the technical and commercial feasibility, viability and/or compliance of a product or project
- accelerate and expand the research, development and commercialisation of low emissions technologies that show potential to become scalable, replicable and cost-effective
- create an ecosystem that can develop the capability to drive repeated clean technology innovation
- attract world-class clean technology companies and innovations to domestic markets and convert NSW into a clean technology superpower.
This program is administered by Department of Climate Change, Energy, the Environment and Water.
Eligibility
Who can apply
To be eligible for funding, you as the applicant must:
- hold an Australian Business Number (ABN)
- be an eligible organisation:
- an Australian entity duly incorporated under the Corporations Act 2001 (Cth) and hold and comply with all necessary authorisations that are material to the conduct of the business of the applicant(s)
- a private or publicly funded research organisation applying through its appropriate commercialisation or technology transfer department, which will establish a separate entity to commercialise clean technology (such as a university spin-out)
- a Commonwealth entity under Section 10 of the Public Governance, Performance and Accountability Act 2013 (Cth)
- an Australian state or territory-owned body corporate, or a subsidiary of an Australian state or territory-owned body corporate
- an Australian, state, territory, local government or council entity
- an international non-government organisation seeking to establish an Australian-based entity to commercialise a clean technology not yet adopted in NSW
- be the legal and beneficial owner of, or has all necessary rights to use, any intellectual property necessary to carry out the project
- hold or obtain all insurances required by law, including $20 million public liability insurance and worker's compensation
- materially comply with all:
- obligations under employment contracts, industrial agreements and awards
- codes of conduct and practice relevant to conditions of service and to the relations between the applicant and the employees employed by the applicant
- applicable Workplace Health and Safety legislation
- be solvent, of going concern, able to pay debts when they fall due and not be subject to any insolvency event including the subject of an order or resolution for winding up or dissolution (other than for the purposes of reconstruction or amalgamation) or the appointment of a receiver, liquidator, administrator or similar
- not be listed on the Australian Department of Foreign Affairs and Trade sanctions list
- disclose any legal proceedings or investigations including litigation, arbitration, mediation or conciliation that are taking place, pending or (to the best of the applicant’s knowledge, after having made proper enquiry) threatened against the applicant or a related body corporate (as defined in the Corporations Act 2001 [Cth])
- disclose all Australian state, territory and/or commonwealth government grants applied for in relation to the project including history of grant funding (including both successful and unsuccessful applications)
- ensure all applications have one lead applicant.
Who the grant is targeted towards
- Universities
- Cooperative Research Centres (CRCs)
- Start-ups/entrepreneurs
- Researchers
- Innovators
Types of projects funded under this grant
To be eligible for funding, your project must:
- be based in NSW
- be applying for funding between $500,000 and $5 million
- be expected to be complete within 3 years of commencement
- have a technology readiness level (TRL) of between 6-9
- have a commercial readiness index (CRI) of less than 4
- align to a Decarbonisation Opportunity Cluster as outlined in the Office of Chief Scientist and Engineer’s 2023 update to the Decarbonisation Innovation 2023 Study
- have co-contribution funding arrangements of at least 1:1 between grant funding (from this grant) and other sources (e.g. applicant, collaborators, private or other public organisations). Projects that have a cash contribution from potential customers or an institutional investor will be viewed favourably during assessment. Higher cash contributions will also be viewed favourably. In-kind (non-financial) contributions are not eligible.
You as the lead applicant must also confirm that your proposed activities will, or have the potential to, advance or progress the clean technology product or solution toward commercialisation. Examples of eligible activities include, but are not limited to:
- technology development
- construction of specific testing infrastructure
- prototyping
- product verification
- demonstration and deployment
- Front End Engineering Design (FEED)
- technical feasibility studies.
Outcomes for projects funded under this grant
The expected project outcome is to pilot lab-proven clean technologies and demonstrate their potential to accelerate commercial readiness.
What costs you can apply for
Eligible costs may only be incurred once both parties (you and the department) have signed a funding deed. This may include costs that:
- are directly related to undertaking of your project
- are incurred by you within the project duration
- are a direct cost of the project and are not be provided for the benefit or profit of related bodies
- meet the conditions set out in the clean technology innovation guidelines, supplementary guidance and the funding deed.
Who can’t apply
Ineligible applicants include.
- foreign national or sub-government, departments, owned or controlled entities
- organisations that do not have an ABN and are unable to obtain an ABN to enter a funding agreement
- other unincorporated organisations
- an individual (including sole traders)
- insolvent businesses.
What costs you can't apply for
The following costs are ineligible for funding:
- the costs to acquire land for your project
- repayment of existing debts or budget deficits
- expenditure that does not directly support the successful completion of your project
- administrative, operational and maintenance costs not related to your project
- items that can reasonably be considered as business-as-usual operational costs (i.e. audit costs)
- salaries for positions that have already been accounted for in organisational budgets
- business-as-usual staff costs unrelated to your project, such as redundancy or retirement benefits, workers compensation payments, professional fees or memberships
- activities carried out or committed to before a grant is offered and accepted
- routine infrastructure and equipment that can be reasonably be assumed to be integral for the core business such as laptops
- costs relating solely to marketing, advertising or product promotion, including education and information campaigns
- legal costs associated with a consortium, disputes or funding arrangements not agreed to as part of the funding deed
- infrastructure and equipment that can reasonably be assumed to be integral for the core business, such as laptops.
Types of projects not funded under this grant
Ineligible projects include:
- technology advancement projects (technological readiness level < 6)
- scaling or manufacturing a commercially proven technology (commercial readiness index > 4)
- marketing or business development activities to support customer sales
- projects aimed at developing a new technology for private use only
- commercialising the new version or iteration of an existing technology where the updates and changes are minor and therefore do not qualify as being an innovation
- engaging one or more experienced executive(s) to fill an identified gap in the project management team, for the purposes of achieving commercialisation outcomes
- projects requiring ongoing funding from the NSW Government
- projects that would proceed and be delivered within the same timeframe without government investment support
- projects that have already commenced for the scope of work for which funding is requested in the application
- projects that have already received NSW Government for the same project, or any part of the project with the same scope of outputs and outcomes.
Example projects
Example 1 (Infrastructure): Company C wants to build a research and development laboratory to test an innovative technology in their facility.
Company C will construct a dedicated laboratory to test and evaluate their innovative technology. This laboratory is located within their own facility. By having a dedicated space, Company C can conduct rigorous testing, verification and validation of their technology. It provides them with a controlled industry environment to assess the performance, safety and reliability of their product.
Example 2 (Prototyping): Company Y has developed a machine that can convert waste material into bricks. The technology is deemed ready, but to showcase its functionality and validate its capabilities Company Y needs to build a prototype.
Company Y will build the prototype, which involves using their innovative machine to construct a house using waste material as the raw material for the bricks. The purpose of this prototype is to demonstrate the effectiveness and feasibility of the technology in a real-world application. If the prototype construction is successful and meets the desired outcomes, it validates and verifies the machine’s functionality and performance. This success paves the way for Company Y to multiply their prototypes or transfer their technology to the manufacturing stage, where they can begin producing the machine on a larger scale for commercial use.
Example 3 (Front-end engineering and feasibility): Company A will complete FEED for a small-scale, modular lithium-ion battery recycling and refining plant.
Company A is constructing a pilot lithium-ion battery recycling plant. They need to undertake detailed engineering and feasibility studies to finalise the specification and modular design for scale up. The pilot plant will demonstrate that lithium-ion battery recycling is scalable and cost-effective. This project supports the development of a circular battery economy, creates skilled jobs, and provides a model for export-ready modular plants.
Example 4 (Product verification and feasibility study): Company Q has developed a carbon neutral concrete that sits at TRL 6. The product is lab-tested but needs further testing and compliance. The company also wants to trial the technology but would like to undertake a feasibility study to ensure they understand the trial requirements.
Stage 1: Product verification
Company Q will carry out compliance verification to ensure that the carbon-negative concrete meets relevant standards, codes and regulations for the construction industry. This may require comprehensive testing to assess the concrete’s durability, strength and other key characteristics. These tests confirm that the product performs as expected beyond initial lab results. Once verified, the next step would be to conduct field trials to evaluate its performance in practical applications.
Stage 2: Late feasibility study
Company Q is interested in conducting trials of its carbon negative concrete but wants to ensure that it understands the trial requirements, costs analysis, risks and potential outcomes of these trials.
The combination of product verification and a well-structured feasibility study will help Company Q ensure that its carbon negative concrete product is not only technically sound but also economically viable and well prepared for market trials.
What co-contributions are required
You as the applicant must demonstrate a co-contribution funding arrangement of at least 1:1 between grant funding (from this grant) and other sources (for example, applicant, collaborators, private or other public organisations). In-kind (non-financial) contributions are not eligible.
What your application needs to include
Prepare your application with this checklist
Not Applicable
Address the eligibility criteria
Each applicant, as part of an application response, must confirm that they meet the eligibility criteria.
Applicants that do not address the eligibility criteria in full may be excluded from the application process at the department's discretion.
Address the assessment criteria
Eligible applications will be assessed against the following merit criteria:
- technical deliverability and advancement
- capacity and capability to deliver
- project delivery and challenges
- Technology Readiness Level (TRL) assessment
- financial feasibility
- commercial feasibility
- alignment with NSW Government strategic objectives.
Start the application
This grant involves a single-stage application and assessment process. You must submit a detailed application that explains your project and addresses the eligibility and merit criteria outlined in the clean technology innovation grant funding guidelines and supplementary guidance.
Step 1: Before you apply
Before you apply:
- visit our website to read up to date information about this grant opportunity
- use the eligibility checker tool on our website to find out which grant stream you may be eligible for
- read the funding documents and other related documents published on our website
- register for our webinar and question and answer (Q&A) session on our website.
If you have any questions about your project’s eligibility you should refer to the frequently asked questions or email us at netzeroinnovation@environment.nsw.gov.au.
Step 2: Complete and submit your application
Complete the application form on the NSW Government’s Grant Management System (GMS). Please refer to the clean technology innovation supplementary guidance on our website for the step-by-step process.
Your application must be submitted by the closing date and time to be eligible for assessment.
The following outlines the list of activities all applicants must complete to submit a completed application:
Create your application
Once you create an application via the GMS you can edit it at any stage before you submit or the application closing date.
Information about how we use your information, privacy and any disclaimers can be found at the start of the application.
Prepare the required information
As part of the application process we require information about you and your project. The information you provide will be assessed, and includes:
- details about you (and any partner organisations if relevant)
- details about your project, including:
- where in NSW your project is based
- the total project cost and amount of funding being requested
- the proposed start and end dates
- any background and proposed outcomes
- documentation and evidence supporting any claims or aspects of your application
- a completed workbook identifying:
- the key project milestones
- the project budget
- any key contractors
- a risk management plan.
Review the funding deed template
A copy of the funding deed will be available to review in the application form as part of the application process. If you are successful, you will be required to complete and sign the deed before your project can commence.
If you have any requests for departures, you can submit them with your application. The department is the final authority on whether your request will be considered.
Declare and submit your application
Review your application carefully to make sure you have provided all the required information and complete the declaration and authorisation.
All applications must be submitted before the application close date. If you do not receive an email confirming receipt of your application, please email us at netzeroinnovation@environment.nsw.gov.au.
Note: If you are a new applicant to SmartyGrants, you will need to register and create a password. If you are already registered, you can log in with your existing username and password.
Apply now
After the application is submitted
Successful applications will be decided by: NSW Department of Climate Change, Energy, the Environment and Water (the department)
The department will oversee the assessment process which will involve the following components:
- Eligibility assessment: your application will be reviewed against the eligibility criteria, as outlined in Section 4 of the clean technology innovation guidelines on our website. Applications deemed as ineligible will not be considered for further assessment.
- Merit assessment: an independent assessment team will assess eligible applications against the merit criteria identified in Section 5 of the clean technology innovation guidelines on our website. A ranking report will be generated through the comparative assessment of applications against the merit criteria.
- Review and recommendation: an independent review panel will recommend projects for funding by reviewing the results of the assessment and ensure they align with the portfolio and policy objectives of the NSW Government.
- Due diligence: we will undertake a comprehensive check on your (and any partner) organisation, such as background and legal checks, financial capacity, and corporate structures.
- Approval of projects for funding: the program sponsor will make the final decision on the projects approved for funding.
An independent probity advisor will also oversee the entire process to ensure assessments are undertaken in a fair, honest and transparent manner.
Anticipated assessment outcome date is After February 2027, or as soon as the Department has made a decision
