Open Call: Carbon Innovation Grants Program (Round 2) – Australia

The Carbon Innovation Grants Program is part of the Government of Western Australia’s Climate Action Fund announced in 2021.

The program will fund feasibility studies, pilot projects and capital works that help to avoid, reduce or offset carbon emissions from heavy industry processes, with a focus on supporting innovative technologies for carbon abatement and sequestration.

The Department of Water and Environmental Regulation administers the $15 million program through a competitive process, which is expected to run across three grant rounds.

Grant Funding Streams

• The program includes two grant funding streams to reflect the different stages of technology development that may require government support. These streams are:
  • Feasibility Studies
    • Supporting technologies and methods to progress from concept to real-world trials.
  • Pilot Projects and Capital Works
    • Supporting real-world testing of innovative technologies and methods from pilot stage through to full-scale deployment.

Funding Information

• Feasibility studies have a minimum funding limit of $50,000 and a maximum funding limit of $500,000, which must be no more than 50 per cent of eligible project costs.
• Pilot projects and capital works have a minimum funding limit of $100,000 and a maximum funding limit of $1.5 million, which must be no more than 25 per cent of eligible project costs.
• Total funds available in Round 2 is $4.3 million
• Maximum time to spend funds
  • Feasibility studies must complete the project within two years of signing the conditions precedent.
  • Pilot/capital works projects must complete the project within three years of signing the conditions precedent.
• Funding payment mechanism: The grant is paid by milestone in arrears on evidence the milestone has been completed including payment for goods and services received.

Eligible Activities

• Examples of the types of activities that could be funded include but are not limited to:
  • Feasibility Studies
    • Concept design, field and or lab testing and economic analysis of industrial process technologies that reduce emissions
    • Carbon capture and or use and or storage
    • Industrial process feedstock swapping
    • Analysis of deploying new, or existing, Australian Carbon Credit Unit methods with current low market utilisation
    • Applying innovative approaches to existing Australian Carbon Credit Unit methods to increase credit volume or reduce costs.
  • Pilot Projects and Capital Works
    • Trials of new technology and or novel modifications to industrial processes
    • Field trails of industrial process feedstock swapping
    • Field testing of carbon capture, and or use, and or storage methods
    • Deploying existing and or new Australian Carbon Credit Unit methods with current low utilisation at pilot trial or full scale
    • Applying innovation to existing Australian Carbon Credit Unit methods at pilot trial or full scale to increase credit volume and/or reduce operating costs.

Eligibility Criteria

• Applicants that:
  • have an Australian Business Number (ABN) and are registered for GST
  • meet one or more eligibility criteria that are listed in the CIGP Applicant Guidelines
  • have members of the management team who are all fit and proper persons as defined in the CIGP Applicant Guidelines
  • if intending to generate Australian Carbon Credit Units, demonstrate the ability to meet the eligibility criteria relevant to the proposed carbon crediting method.
• In addition, an applicant’s project must:
  • be located in Western Australia or involve feasibility studies specific to sites or locations in Western Australia
  • seek funding within the published funding range and other nominated financial commitment thresholds
  • demonstrate clear alignment to the CIGP objectives, including that the project must be new, involve carbon abatement or sequestration, progress technologies or methods along the pathway to commercial viability, include at least one industrial business partner, and be permissible by law
  • be able to commence and be completed within the minimum and maximum timeframes outlined in the CIGP Applicant Guidelines.

Assessment Criteria

• Eligible applications will be assessed for overall value for money, high emissions reduction and the quality of information provided against merit criteria. Value for money is a key underlying principle in the expenditure of public funds. This means gaining the best possible outcome, for every dollar spent, by assessing the overall costs and benefits to Western Australia.

For more information, visit Government of Western Australia.