Deadline Date: November 28, 2025
The Victorian Government has launched Round 3 of the Energy Innovation Fund (EIF) to accelerate electrification in the State’s food and beverage processing and manufacturing sector by supporting projects that replace fossil fuel systems with electric alternatives.
Focus Areas/Objectives/Priorities/Themes: The Energy Innovation Fund supports the commercialisation of emerging energy transition technologies critical to achieving net-zero emissions by 2045. Round 3 targets the electrification of Victoria’s food and beverage processing and manufacturing sector—one of the State’s most energy-intensive industries—by co-funding innovative projects that replace fossil fuel usage with electric alternatives. The Fund aims to position Victoria at the forefront of the energy transition by supporting emerging energy technologies to transition from pre-commercial to commercially viable energy options, providing funds to fast-track the development and deployment of projects in priority energy subsectors, and targeting sectors that may not yet be commercially competitive but are anticipated to play a critical role in supporting Victoria’s energy transition.
Round 3 of the Energy Innovation Fund represents a $10 million investment by the Victorian Government to drive industrial electrification in the food and beverage sector. Grants of up to $2 million per project will be available to help businesses replace fossil-fuel-powered systems with modern electric equipment. This initiative supports businesses in lowering energy costs, reducing exposure to gas price volatility, and cutting emissions while encouraging the adoption of scalable clean technologies.
Victoria’s food and beverage industry generates $47.6 billion in annual revenue and employs more than 75,000 people across over 3,900 businesses. However, it remains one of the State’s most emissions-intensive sectors due to its heavy reliance on fossil gas for industrial heating and continuous operations. The Fund addresses this challenge by fostering the deployment of proven, efficient electric technologies, such as electrode boilers, electric dryers, and heat pumps, that can deliver immediate energy and emissions benefits.
Eligible applicants include Australian businesses, government entities, and councils that hold an ABN and meet financial and operational requirements. Projects must primarily take place in Victoria and demonstrate clear electrification outcomes contributing to the State’s net-zero emissions target by 2045. Feasibility studies and early-stage research activities are excluded from funding, as the program is designed to support capital-intensive projects that deliver measurable electrification outcomes.
Successful projects will be selected through a competitive process based on six merit criteria, including their contribution to Victoria’s energy transition, pathway to commercial operations, economic and community impact, innovation, energy sector resilience, and financial viability. Shortlisted applicants will undergo due diligence and funding agreement negotiations before implementation begins between July and September 2026.
Through this targeted investment, the Victorian Government aims to ensure the food and beverage manufacturing industry remains competitive, sustainable, and future-ready. Electrifying the sector will reduce energy costs, improve productivity, and support regional jobs while helping Victoria achieve its renewable energy and emissions reduction targets.
For more information, visit DEECA.
