Key information
- Status: Open
- Grant amount: Up to $20,000,000
- Application opened: 9 March 2026
- Application closes: 24 April 2026, 11:00 pm
Program objective
The Renewable Gas Production Program aims to:
- expand the development of a biomethane market and supporting infrastructure in NSW
- deliver cost-effective, large-scale biomethane for injection into the gas distribution network
- support industrial facilities to fast-track emissions reductions by replacing natural gas with biomethane
- make biomethane more affordable and accessible for industrial users
- support fuel security, economic resilience and job creation
- position NSW as a leader in renewable energy and sustainable resources
- foster collaboration and knowledge-sharing across the sector to expand biomethane supply and improve cost efficiency.
This program is administered by Department of Climate Change, Energy, the Environment and Water.
Eligibility
Who can apply
Businesses in NSW that:
- have an Australian Business Number (ABN)
- are 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
- are/will be the biomethane plant asset owner or have/will have operational control over biomethane production plant
- by the full application stage, intend to participate in and receive a letter of support from Green Power’s Renewable Gas Certification to create and sell Renewable Gas Guarantee of Origin certificates for the produced biomethane
- by the full application stage, intend to have in place a letter of intent, memorandum of understanding, or similar agreement with:
- feedstock suppliers for biomethane production
- NSW gas network owners or operators to enable injection into the gas pipeline
- an industrial off-taker in NSW that will use the biomethane.
- hold or will 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
- 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 applicant’s employees
- applicable workplace health and safety legislation
- are not 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, administer or similar
- are not listed on the Australian Government Department of Foreign Affairs and Trade sanctions consolidated 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
- are the owner of or have all rights to use and license any intellectual property needed to carry out the project.
Please see the Renewable Gas Production Program funding guidelines for the full list of eligibility requirements.
Who the grant is targeted towards
All NSW businesses that:
- have capability and capacity to implement a biomethane production project able to produce a minimum of 0.1 petajoules of biomethane per year, and;
- can inject the biomethane produced into the NSW gas network by 30 June 2030.
Types of projects funded under this grant
You must confirm that the project:
- will comply with relevant local, state and federal regulatory requirements
- will use feedstock procured in NSW to produce in-front-of-meter biomethane in NSW
- will comply with these Renewable Gas Certification requirements and rules
- will produce at least 0.1 PJ per year of biomethane to decarbonise a NSW industrial facility
- will use a feasibility study or similar evidence to show that it is technically and commercially feasible by full application stage.
- will be operational and inject biomethane into NSW gas network on or before 30 June 2030
- is requesting funding within the funding limit for individual grants ($20 million)
- will include co-investment of at least 50% of eligible project costs by your organisation or through arrangements with partnering organisations that are not affiliated with the NSW Government. Higher cash contributions towards eligible costs are preferred
- will require NSW Government co-funding to either:
- enable a final investment decision by making the project commercially or financially viable
- significantly shorten the implementation timeframe, or
- increase the scale of biomethane production and associated industrial emissions abatement.
Please see the Renewable Gas Production Program funding guidelines for the full list of eligibility requirements.
When the project can start and end
Biomethane projects that will be operational on or before 30 June 2030.
The project should be started by 31 January 2027 and the project must be completed by 30 June 2030.
Outcomes for projects funded under this grant
Biomethane projects must produce and inject biomethane into the NSW gas network by 30 June 2030, with a minimum project production capacity of 0.1 petajoules (PJ) of biomethane per year.
What costs you can apply for
Funding may contribute to the following areas:
- Capital works and infrastructure, including, but not limited to:
- feedstock infrastructure such as collection, aggregation, pre-treatment, storage and distribution
- biomethane production facilities such as anaerobic digestion, gasification, pyrolysis, biogas upgrading, purification and methanation
- biomethane delivery and injection infrastructure such as compressors, boosters, pipelines, grid-connection upgrades and other assets required for network injection.
- Project development activities which are incidental to successful implementation of the project. These include, but are not limited to:
- final detailed engineering design including preparing documentation, drawing and specifications
- procurement including sourcing, contracting and managing delivery of goods and services
- construction including building and installing project infrastructure in line with approved designs
- commissioning including testing and verifying systems to meet design specifications.
Who can’t apply
Ineligible applicants include:
- unincorporated associations
- an individual (including sole traders)
- joint applicants without a lead applicant
- insolvent businesses
- NSW state-owned corporations or statutory authorities
- corporations classified under the Australian and New Zealand Standard Industrial Classification (ANZSIC) code 0700 Oil and Gas extraction
- anyone who does not meet the eligibility criteria.
Please see the Renewable Gas Production Program funding guidelines for the full list of eligibility requirements.
What costs you can't apply for
Ineligible project expenditures include:
- early-stage development activities such as scoping studies, pre-feasibility studies and feasibility studies
- standalone studies or capital works that do not directly result in biomethane production and injection into the NSW gas network.
Types of projects not funded under this grant
Projects that do not directly increase the supply of grid-injected biomethane in the NSW network are not eligible for funding. Examples include:
- behind-the-meter biomethane projects intended solely for on-site use without network injection
- projects for non-industrial end uses including those not aligned with industrial decarbonisation objectives.
*Please note: at our discretion we can consider applications for projects that exceed the maximum grant amount under exceptional circumstances.
Example projects
Biomethane development projects that this funding could support include, but are not limited to:
- feedstock infrastructure projects
- biomethane production processes such as anaerobic digestion, gasification, pyrolysis projects
- infrastructure to inject biomethane to NSW gas grid and distribute.
What co-contributions are required
Applicants must contribute at least 50% of the eligible costs of the biomethane project. Higher contributions are preferred. Contributions can be provided by the applicant’s organisation or through arrangements with partner organisations not affiliated with the NSW Government.
To ensure the best value for taxpayers and project success, the Assessment Committee prioritises proposals that demonstrate a strong private financial commitment. Projects where the applicant’s own investment exceeds the combined state and federal grant funding are viewed as having a more robust risk profile, which will be favourably considered during the portfolio selection process.
What your application needs to include
Prepare your application with this checklist
Please see the Renewable Gas Production Program funding guidelines for the full list of application requirements.
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
Please see the Renewable Gas Production Program funding guidelines for details on the assessment criteria.
Start the application
Expression of Interest applications
From Monday 9th March 2026, The Renewable Gas Production Program will be launched, and applicants can submit expressions of interest applications.
Expression of Interest applications will close on Friday 24th April 2026.
Full applications
From July 2026, invited applicants from the EOI stage will be able to prepare and submit their full application.
Full applications will close in September 2026.
Please see the Renewable Gas Production Program funding guidelines for details on the application process.
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Apply now
After the application is submitted
Successful applications will be decided by: NSW Department of Climate Change, Energy, the Environment and Water
Assessment of Expression of Interest applications
At the close of the EOI application stage on 24th April 2026, independent assessors will assess all eligible applications against the merit criteria. An Assessment Review Committee will review the assessment and make recommendations about which projects should be invited to submit a full application.
Assessment of Full applications
At the close of the full application stage on 30th September 2026, independent assessors will assess all eligible applications against the merit criteria. An Assessment Review Committee will review the assessment and make recommendations about which projects should be awarded funding.
Anticipated assessment outcome date
September 2026 to January 2027 (as soon as possible once a decision has been made at the department’s discretion).
Please see the Renewable Gas Production Program funding guidelines for details on the assessment process.
Anticipated assessment outcome date is June to July 2026 for the EOI stage, and September 2026 to January 2027 for the full application stage
Anticipated date for funding deed execution with successful applicants is September 2026 to January 2027 (as soon as possible once a decision has been made at the department’s discretion)