Powering the Regions — Industrial Transformation Stream

Powering the Regions ITS — Round 3

Funds regional industrial decarbonization projects at Australian facilities to strengthen real-world implementation.

Powering the Regions — Industrial Transformation Stream (ITS) Round 3 is an ARENA grant program providing A$180 million in remaining funding (from a A$400 million total pool) to decarbonise existing industrial facilities located in regional Australia. The stream focuses on real, operational assets rather than greenfield projects: eligible activities include electrification, energy efficiency upgrades, low-emissions processing, and fuel switching at manufacturing, processing, and other heavy industrial sites. Round 3 opened in September 2025 on an ongoing basis, replacing the now-closed Rounds 1 and 2.

Eligible applicants include Australian-registered for-profit companies, not-for-profits, universities, and research organisations, but the program's operational-asset requirement means the practical applicant pool is dominated by industrial operators and their technology partners. Individuals may not apply. Award amounts are not published on the ARENA landing page. The application pathway is structured in three stages: applicants must first submit a Funding Advice enquiry, then a Project Plan expression of interest (limited to 20 pages), and only then a full application — a staged approach ARENA uses to filter for genuine project readiness before full assessment.

The program is competitive in both the grant-quality and timing dimensions: with A$180 million remaining of an original A$400 million envelope, the pool may close before any formal deadline is announced. Organisations with shovel-ready decarbonisation projects at regional industrial sites — particularly those with co-investment from industry and clear emissions-reduction metrics — are best positioned. The three-stage process rewards applicants who secure early ARENA engagement through the Funding Advice pathway.