Carbon Innovation Grants Program

Supporting WA heavy industries to transition to net zero carbon emissions
Graphic for Carbon Innovation Grants Program

The Carbon Innovation Grants Program is part of the Government of Western Australia’s $1.25 billion Climate Action Fund announced in 2021.

The purpose of the program is to build the capacity of heavy industry sectors to transition to net zero emissions by 2050, in line with government targets.

The program will fund feasibility studies and trials 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 will administer the $15 million program over the next five years through competitive grant rounds.

The application process for Grant Round 1 opened on Thursday 13 October 2022. You can view more information on how to apply below.

Grant funding streams

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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.

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

Supporting real-world testing of innovative technologies and methods from pilot stage through to full-scale deployment.

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.

Applying for Grant Round 1

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The application process for Grant Round 1 opened on Thursday 13 October 2022.

Grant Round 1 will close at 2pm (Australian Western Standard Time) on Friday 16 December 2022.

Grant applications are managed via our SmartyGrants portal

Guidelines for using SmartyGrants to apply for the grant are available when you click on the link in the SmartyGrants portal.

If you have technical queries about using the SmartyGrants application, please contact SmartyGrants support on 03 9320 6888 or email at service@smartygrants.com.au

Frequently asked questions (FAQs)

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You may find these frequently asked questions useful. Note that they will be updated periodically.

Can I apply for this grant if I am receiving another grant from the Department of Water and Environmental Regulation? 

Yes,  the Carbon Innovation Grants Program allows for up to 50 per cent of the eligible costs for a Feasibility Project and 25 per cent of the eligible costs for a Pilot and Capital Works Project to be to be funded from WA Government grant sources.

Who is eligible for the Carbon Innovation Grants Program (CIGP) grant? 

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. 

How much funding is available? 

Approximately $4 million per round over three grant rounds. The amount of funding ultimately awarded per round is at the discretion of the Minister for Climate Action.  

What types of projects can be funded? 

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. 

How will the Department of Water and Environmental Regulation support the application process? 

The Program Manager – Carbon Innovation Grants is available to support administrative queries relating to the application process and can be contacted on 08 6364 7666 or email at carbongrants@dwer.wa.gov.au. We will provide online information sessions to support applicants to meet the requirements in the CIGP Applicant Guidelines.  

What are the two streams of funding? 

The first funding stream is for Feasibility Studies with 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. 

The second funding stream is for Pilot Projects and Capital Works with 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.

Can I apply for both streams?

Yes. Applicants may make multiple applications to either or both funding streams if they have multiple eligible project proposals.  

What projects would not meet the eligibility criteria? 

Ineligible project types include but are not limited to: 

  • existing projects that are already underway 
  • ceasing operation of a business to reduce emissions 
  • business as usual activities, that is normal operation of an existing business or venture  
  • renewable energy generation that is not directly supplying heavy industry processes on the same site (these types of projects may be funded by the Clean Energy Future Fund)  
  • broad or generic research that is not specific to a heavy industry facility or facilities  
  • projects not involving specific sites or locations in Western Australia   
  • projects without an industrial business partner providing a cash or eligible in-kind contribution to the project 
  • projects intending to generate carbon credits outside of Western Australia and/or projects using crediting methods that are not eligible for use under the Climate Active Carbon Neutral Standard.  

Online information sessions

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While the grant round is open, we will be holding online information sessions on the application process.

The first session was held on Wednesday 26 October, 10.30am – 12.30pm. You can view the presentation slides and video recording of this session.

The second information session was held on Monday 14 November 2022, 2.00pm – 3:30pm. You can view the presentation slides and video recording of this session.

Further online information sessions may be held depending on demand.

More information

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If you have queries about the program, including eligibility and merit criteria contact us on 08 6364 7666 or email carbongrants@dwer.wa.gov.au

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Page reviewed 1 December 2022