New funding opportunity to support industrial heat decarbonisation

24 June 2005

Australian Industry Renewable Heat Accelerator launched to help manufacturers transition from gas to renewable process heat

A new initiative has been launched to help Australian manufacturers tackle early-stage barriers in transitioning from gas to renewable heat technologies. The Australian Industry Renewable Heat Accelerator (AIRHA) will provide support and funding to mass-market manufacturers and manufacturing industry associations for projects including pre-feasibility and options studies, small-scale pilots and appliance switching, and sector roadmaps across sectors such as food and beverage, agriculture, textiles, chemicals, and building materials.

The initiative comes as gas prices have surged in recent years and industry faces growing concerns about potential shortfalls, while at the same time renewable heat technologies have become technically and commercially appealing alternatives. Additionally, many industrial gas users are experiencing increasing stakeholder pressure for decarbonisation as governments, customers and consumers seek to decarbonise supply chains.

“Having worked with manufacturers for over 15 years, I know that lack of time, budget, and unfamiliarity with technology options are some of the biggest barriers to adopting renewable heat solutions,” said Emma Peacock, AIRHA Co-Lead. “The Accelerator is designed to tackle these early-stage barriers by providing the resources and expertise manufacturers need to explore viable alternatives that can lower costs, improve sustainability, and strengthen business resilience.”

Tom Connell, AIRHA Co-Lead, highlighted the increasing viability of renewable heat solutions: “We are seeing a large number of industrial processes - from washing and sanitation to drying, pasteurisation, and distillation - increasingly switching to renewable heat, giving manufacturers greater certainty over their production. Many of those processes that require low-temperature hot water, steam and heat are suited to electrification with heat pumps, and there are a range of technologies emerging for higher heat applications, such has thermal storage, bioenergy, and solar thermal.”

The initiative is supported by the Australian Alliance for Energy Productivity (A2EP) and aims to demonstrate a nimble, scalable model for accelerating industry decarbonisation by efficiently providing support to a sector which has been historically underfunded.

Jarrod Leak, CEO of the Australian Alliance for Energy Productivity (A2EP), emphasised the importance of renewable heat for Australia's productivity and its manufacturing future.

"Industrial process heat is one of Australia's biggest decarbonisation challenges, accounting for around 20% of end-use energy, with most of that heat supplied by fossil fuels.

"Transitioning to commercially available renewable heat technologies will help manufacturers secure energy costs, meet net zero targets and remain competitive in a decarbonising global market."

Consultations are available throughout June, with applications expected to open in July. Priority applications are expected to close in late August, with the first projects commencing in September and October 2025.

Manufacturers, industry associations, technology providers, and other stakeholders interested in learning more about the Australian Industry Renewable Heat Accelerator can contact the team for initial consultations.

What the Accelerator offers: 

• Support and funding for pre-feasibility and options studies and small-scale pilots or appliance swaps. 

• Support and funding for industry associations to build sector capability, including through development of roadmaps and information resources. 

• Connections to expert engineers, consultants, and OEMs.

• Simple and quick application process, collaborative approach.

About the Project Leaders:

Emma Peacock is an independent sustainability advisor with experience leading complex change projects focused on capturing opportunities generated by the transition to a more sustainable world. She has worked across private, public, and not-for-profit organisations including Unilever, Coca Cola Amatil, and NSW Government.

Tom Connell is a renewable energy and decarbonisation professional with broad experience across renewable energy technologies and projects, project development and delivery, funding programs and multi-sector decarbonisation.

Contacts: 

Emma Peacock: emma@emmapeacock.com 

Tom Connell: tom@sustainableadvisory.com.au