AMGC SME Industrial Decarbonisation Fund: A Guide for Australian Manufacturers.

Many Australian manufacturers still rely on gas to cure coatings, raise process steam or melt metal. The SME Industrial Decarbonisation Fund helps small and medium manufacturers switch to electric alternatives, with co-investment from the Advanced Manufacturing Growth Centre (AMGC).

Read the official fund page and documents here: SME Industrial Decarbonisation Fund, Advanced Manufacturing Growth Centre.

What is the SME Industrial Decarbonisation Fund?

The Fund is a $10 million (ex GST) co-investment fund administered by AMGC. Its objective is to accelerate industrial decarbonisation by co-investing in smaller manufacturing facilities that want to lower their Scope 1 (direct) emissions.

The Fund opened on 1 July 2026. It is open, continuous and competitive, and applications are assessed on a first come, first served basis until the money runs out. The last date for applications is 31 December 2027, or earlier if the Fund is fully allocated, and all projects must be completed before 31 March 2028.

The three focus areas

Projects must target one of three energy-intensive processes:

• Surface treatment, such as powder coating, galvanising and metallic finishes. AMGC's example is a steel products manufacturer replacing a gas-fired powder-coating oven with an electric infrared curing system.
• Process steam, such as sterilisation, drying and cooking. AMGC's example is a food manufacturer replacing a natural gas boiler with an electric boiler and heat pump system.
• Metals processing, such as fabrication, refinement, transformation or extraction. AMGC's example is an aluminium foundry replacing a gas-fired melting furnace with an electric induction furnace.

Projects must show a pathway to commercial viability and a measurable reduction in emissions.

How much funding is available?

According to the Fund Guidance, AMGC can co-invest up to 50 per cent of total eligible project expenditure. The minimum AMGC co-investment is $200,000 and the maximum is $500,000, with smaller amounts considered case by case. The Fund page lists an eligible project size of $400,000 to $1 million.

Applicants must cover at least 50 per cent of eligible costs in cash (in-kind contributions can be added on top) plus any ineligible costs. Funding from other Commonwealth, State, Territory or local government programs can't be used for your share.

AMGC also charges a 3 per cent commencement fee on the industry contribution at the start of each project, and a 3 per cent management fee spread across the project's milestone payments. Payments are made in arrears as milestones are met.

Who can apply?

To be eligible, the applicant must:

• Be an SME with up to 200 employees, with an ACN and an ABN.
• Be non-tax-exempt and registered for GST.
• Be an entity incorporated in Australia (start-ups and trading corporations included).
• Use fossil fuels for surface treatment, process steam or metals processing, and be able to move those processes to renewable energy technologies.
• Carry out activities in Australia and deliver the project before 31 March 2028.
• Provide an accountant declaration (using AMGC's template) confirming it can fund its share of costs.

Individuals, partnerships, trusts (an incorporated trustee may apply case by case) and government bodies are not eligible.

What can the money be spent on?

Eligible expenditure includes capital equipment that enables the move from fossil fuels to electrification (up to 75 per cent of total project cost), upgraded power supply, regulatory compliance for power or facility upgrades, staff training and certification, and consultants for renewable energy assessment (up to 10 per cent of project cost).

The Fund won't support carbon capture and storage, waste incineration, or projects that mainly deploy already-proven options such as rooftop solar, battery storage or power purchase agreements. Software counts only where it is an integral part of the decarbonisation process; stand-alone software projects don't fit the Fund. Spending before AMGC's Board approves the project is ineligible.

How applications are assessed

Applicants first complete a self-assessed Eligibility Check on the Good Grants portal, then the full application. Five merit criteria are each worth 20 points: contribution to the Fund's outcomes, applicant capability and capacity, project design and risk, financial viability and co-funding, and knowledge sharing. Applications need at least 50 out of 100 to progress. The budget and milestones must name suppliers, and quotes for major costs may be requested.

Enquiries go to [email protected].

How StepSharp helps manufacturers with electrification projects

StepSharp is an Adelaide software, AI and automation company that implements AI, ERP, MES and IoT systems for manufacturers. In a decarbonisation project, that work supports the new equipment rather than replacing it:

• IoT energy monitoring and metering to capture gas and electricity use before and after the switch, so you can measure CO2 and energy savings, which the Eligibility Check asks about.
• MES and ERP integration so new electric boilers, ovens or furnaces feed production, maintenance and cost data into the systems you already run.
• AI process optimisation to help tune heat pump, boiler or curing schedules around production demand and energy costs.
• Reporting dashboards that make milestone reporting and the Fund's knowledge-sharing requirements easier.

Because the Fund only backs software that is integral to the decarbonisation process, StepSharp scopes this work as part of your electrification project, with clear costs your budget can name as a supplier.

Thinking about switching a gas-fired process to electric? Contact StepSharp to talk through how monitoring and systems integration could fit your project, and check the full details on the official AMGC Fund page before you apply.