LCPM Construction Ready Stream

Applicants can be based internationally*, interstate or in NSW. To be eligible for funding, the lead applicant must:

• hold or be willing to obtain an Australian Business Number (ABN) prior to entering into a funding agreement
• be or will become an entity type listed below prior to entering into a funding agreement:
  • a company incorporated in Australia
  • a company limited by guarantee
  • an incorporated trustee on behalf of a trust
  • an incorporated association or a co-operative
  • an Aboriginal and/or Torres Strait Islander Corporation registered under the Corporations (Aboriginal and /or Torres Strait Islander) Act 2006.
• be or will become registered for goods and services tax (GST) prior to signing a funding agreement
• hold or obtain all insurances required by law, including $20 million public liability insurance and current worker's compensation policy, prior to entering into a funding agreement
• not be subject to any insolvency event including the subject of an order or resolution for winding up or dissolution (other than for reconstruction or amalgamation) or the appointment of a receiver, liquidator, administer or similar
• not be listed on the Australian Department of Foreign Affairs and Trade (DFAT) 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) that may adversely impact the applicant’s ability to fulfil its obligations under the funding agreement
• disclose all Australian Government and/or Australian state territory grants applied for in relation to the proposed project including a history of any grant funding awarded over the last 5 years (including both successful and unsuccessful applications)
• 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 applicants and the employees employed by the applicant
  • applicable Workplace Health and Safety legislation.
• achieve Foreign Investment Review Board (FIRB) approval before commencement of the project should it be required.

Joint applications

Joint applications are permitted provided the lead applicant satisfies the eligibility criteria. The lead applicant must enter into the funding agreement and will be held ultimately responsible for the delivery of the project. The lead applicant must complete the application form and identify all other joint applicants in the application. If invited to submit a detailed application, the application must include a letter of support from each organisation involved in the application. Each letter of support should include:

• details of the joint applicant
• an overview of how the joint applicant will work with the lead applicant and any other joint applicants (if applicable) to successfully complete the proposed project
• an outline of the relevant experience and/or expertise the partner organisation will bring to the application
• the roles and responsibilities of the joint applicant and the resources they will contribute (if applicable)
• the amount and source of any financial contribution to the proposed project (if applicable)
• endorsement by an executive of each joint applicant committing to participation in the proposed project
• details of a nominated contact (management level).

Applicants must ensure they provide correct organisation names and details as this cannot be changed once the proposed project has been assessed. Signed formal agreements between all joint applicants will be required prior to executing the funding agreement.

*International businesses will need an ABN, be registered for GST, have at least $20 million in public liability insurance and be an eligible entity (as listed above) to enter into a funding agreement if successful.

Manufacturing industries

To be eligible for funding, the lead applicant must confirm the following:

• the project will deliver new or expanded industrial facilities in NSW that will manufacture eligible low carbon products and materials at commercial scale*. This includes:
  • building materials
    • cement
    • steel
    • aluminium
    • cross laminated timber.
  • ‘green’ chemicals
    • ammonia
    • methanol.
  • biofuels derived from biomass (plant or algae material, or animal waste)
  • power fuels produced with renewable energy
    • hydrogen
    • fuels derived from hydrogen.
  • inputs needed for agricultural production (such as fertilisers, animal feeds, etc.)
• the project will manufacture an eligible low carbon product that demonstrates lower lifetime carbon dioxide equivalent (CO2e) emissions compared to equivalent conventional incumbent products. The applicant must be able demonstrate the emissions reduction potential thoroughly consistent with established emissions assessment methodologies
• the project will be located in NSW
• the project will be fully delivered within 4 years of execution of the funding agreement and no later than 30 June 2032
• the project is financially sustainable without continued government investment
• the project would not occur in NSW at all, or in the same timeframe, without government support
• the project has a viable commercial strategy
• the applicant will provide a minimum cash contribution of at least 50% of the total proposed project cost from non-NSW Government sources (for example, applicant, collaborators, private or other public organisations). In-kind (non-financial) contributions are not counted towards a contribution of 50% of the total proposed project costs.

*The technologies and processes used to manufacture the low carbon products and materials must be within the Commercial Readiness Index (CRI) 3-6. 

The expected project outcome is a new or expanded commercial scale manufacturing facility for low carbon products. 

Funding may be used for capital expenses (CAPEX) and other costs directly related to the delivery of the project. Eligible costs may only be occurred once both parties have signed a funding agreement.

Eligible costs include:

• purchase of land (if necessary for the project and suitable alternatives to rent do not exist)
• purchasing, constructing, installing and/or commissioning new plant, equipment and/or machinery
• purchasing, constructing, establishing and/or fitting out new facilities, buildings or hubs
• purchasing technology and/or intellectual property (IP) required to undertake the project
• upgrading existing facilities, buildings, plant, equipment, machinery and/or technology where necessary to deliver the project
• external project management and administration costs (up to 10% of project cost).

Ineligible applicants include:

• Australian or NSW Government agencies, state owned corporations or statutory authorities
• local government authorities or their Section 355 committees
• organisations that do not have an ABN and are unable to obtain an ABN to enter a funding agreement
• unincorporated associations
• an individual (including sole traders)
• partnerships without nominating a lead applicant
• insolvent businesses.

The following costs are ineligible:

• funding the day-to-day operations of business
• marketing and promotional costs
• costs incurred before both parties have signed a funding agreement
• cost already funded by other local, state or commonwealth government funding.

The following projects are ineligible for funding:

• 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 funding for the same outputs and outcomes.

Examples of eligible projects:

• Conversion of an existing coal blast furnace steel production facility to produce green steel with low carbon-hydrogen. The hydrogen would be produced from electrolysis using renewable electricity. Hydrogen can replace a portion of the coal, thus reducing CO2e emissions from blast furnaces.
• Manufacture of cements based on carbonation of calcium silicate binders that sequester CO2e by reabsorbing CO2e emissions during the curing process. These binders have a different chemical composition to ordinary portland cement.
• Anaerobic digestion of organic biomass (organic waste fractions, waste from industrial grain distillers, agricultural residues, fuel crops) to produce biomethane for injection into gas pipelines.

The lead applicant will provide a minimum cash contribution of at least 50% of the total proposed project cost from non-NSW Government sources (for example, applicant, collaborators, private or other public organisations). In-kind (non-financial) contributions are not counted towards a contribution of 50% of the total proposed project costs.