Victorian Manufacturing Driving Net Zero Future
Victoria’s transition to net zero emissions by 2045 will require more components and
products to be made to support the zero and low emissions technology sector. This
provides an opportunity for local manufacturers to supply manufactured inputs for
renewable energy generation, transmission, storage and transportation (including, but
not limited to wind, hydro, batteries, hydrogen and solar). This will generate economic
activity, secure well-paid jobs, increase exports, and reduce Victoria’s reliance on volatile
international supply chains.
The Victorian Government has unveiled the Made in Victoria – Energy Technologies Manufacturing program, designed to spur local manufacturers into the heart of renewable energy evolution. The program, heralded by Minister for Jobs and Industry, Natalie Hutchins, aims to equip manufacturers with the tools, skills, and technologies necessary to harness the vast opportunities the renewable energy sector offers. With grants ranging from $100,000 to $750,000, businesses are given support to expand their operations in creating components vital for the zero emissions and renewable energy infrastructures, including wind, hydrogen, and solar.
Victoria's ambitious journey to net zero by 2045 demands a resilient supply chain, skilled workforce, and innovative technology. This initiative seeks to meet these needs by enhancing business competitiveness, fostering skill development, and stimulating job creation. The successful implementation of this grant program is predicted to further solidify Victoria's esteemed status as a front-runner in advanced manufacturing.
Building on the momentum of the previous Low Carbon Manufacturing Grants program, which disbursed $1.8 million to 19 enterprises across the state, the Made in Victoria program showcases the government's unwavering commitment to green manufacturing. With a sector valued at $33 billion, comprising over 24,000 businesses and sustaining approximately 260,000 jobs, Victoria's manufacturing muscle proves to be an indispensable asset in the journey to a sustainable future.
"The transformation of our manufacturing realm, coupled with the infusion of skillsets, investments, and groundbreaking job opportunities, epitomises our dedicated march to a net-zero horizon," articulated Minister Hutchins. Echoing her sentiments, Minister for Energy and Resources, Lily D’Ambrosio, emphasised the imperative of empowering local manufacturers with state-of-the-art technology, framing Victoria's goals of 95% renewable energy generation by 2035 and net zero by 2045.
As the state gears up for a sustainable future, Victorian manufacturers find themselves at the nexus of opportunity, poised to lead in the development of products and components underpinning the transition to net zero. With financial support, these businesses are set to redefine the contours of renewable energy, marking a new era in Victoria's grand manufacturing story.
Close Dates: Applications close 5pm (AEST) 13th December 2023.
Grant Amount: Grants of between $100,000 and up to $750,000 are available. All grants must be matched by a minimum cash co-contribution of $3 for every $1 granted.
Program Objectives
Increase Victorian zero and low emissions energy technologies manufacturing capacity
Victorian businesses adopt and integrate new advanced manufacturing capabilities in product development and manufacturing that contribute to Victoria’s transition to net zero and low emissions.
Support the creation of new jobs and skills development required to support the manufacture of net zero and low emissions technologies
Program Outcomes
More components and products in net zero and low emissions energy technologies are made in Victoria
Improved capability of Victorian manufacturers to use new and advanced technologies to make components and products to support the transition to net zero emissions.
Businesses develop advanced skills to support a highly skilled, diverse and inclusive future manufacturing workforce.
Eligibility Criteria
The program is open to manufacturers with an existing presence in Victoria who require support to increase their capability to manufacture products or components for local and global supply chains contributing to net zero and low emissions technologies. Eligible manufacturing capabilities include but are not limited to automation, additive manufacturing, advanced materials design, robotics, and engineering.
Companies
Applicants must meet the following criteria to be eligible for assistance under the program:
a. be an eligible legal entity1; and
b. hold an Australian Business Number (ABN); and
c. be an employing business registered for WorkCover insurance with WorkSafe Victoria; and
d. agree to meet any co-contribution requirements with eligible cash expenditure
e. be currently engaged in manufacturing or the manufacturing supply chain or demonstrate a genuine commercial connection to the manufacturing supply chain in Victoria.
f. attest that they:
i. agree to conduct the proposed activities in Victoria
ii. have met all industrial relations obligations as an employer in accordance with the National
Employment Standards; and
iii. will participate in future program evaluation activity; and
iv. will provide financial reports as defined in section 5.5 of these guidelines to enable the Department of Jobs, Skills, Industry and Regions (the department) to conduct a Financial Risk Assessment (FRA).
v. will comply with the requirements of the Fair Jobs Code if applicable.
Trust Structures
An Incorporated Trustee can apply on behalf of a Trust provided that the Trustee:
a. will remain sufficiently liable for the performance of any agreement it signs
b. has a right to be indemnified from the assets of the Trust
c. is indemnified from the assets of the Trust
d. comply with the criteria as set out for Companies under items a) to f) in 2.1.1.
The Project
Projects must involve the manufacturing of components or products for which there is demand in net zero and low emissions markets.
Examples of areas of priority include:
advanced materials and components for renewables, such as wind turbines
zero emissions transportation, such as electric vehicles
batteries and other new energy technology components, to support the transition to net-zero
Eligible Project
To be eligible, the project must involve the development or purchase of new equipment, processes, skills, or technology that directly support the making of products or components that will help Victoria transition to net zero.
Funding may support, but is not limited to:
the purchase of capital equipment
technology adoption and associated project expenditure
Eligible Project Expenditure
Eligible project expenditure includes:
capital expenditure (e.g., manufacturing machinery, equipment, and technology)
other project-related non-capitalised expenditure (e.g., related to product and process improvements, evaluation and testing of new products and processes, technology development and supply chain capability development)
minor building alterations and fit-out costs
training specific to the technology (external costs only)
labour and contractors related to the delivery of the project (but do not include internal salaries).
Eligible project expenditure must:
be incurred by the grant recipient within 12 months of execution of the Grant Agreement
be a direct cost of the project
be exclusive of Goods and Services Tax (GST).
Ineligible Expenditure
The program is not intended to support projects which involve:
routine replacement or a minor upgrade of plant and equipment
purchase of vehicles
routine operational expenses, including, communications, accommodation, office computing facilities or software, printing and stationery, postage, legal and accounting fees, and bank charges
costs related to preparing the grant application, preparing any project reports, and preparing any project variation requests
projects where the primary purpose relates to offshore or interstate manufacturing
building websites, marketing, sales, and promotional activities
early-stage Research and Development (R&D) activities
expenditure that is incurred prior to the project commencing
internal salaries
entertainment cost
land acquisition
expenditure where other grants or subsidies are available e.g. Solar for Business Program.
Project Timelines
Projects will be expected to commence within 30 days of execution of the grant agreement and evidence provided that the applicant has committed a minimum of ten per cent of eligible project expenditure by this date.
Successful applicants will need to complete the project activities within 12 months of the date of the grant agreement. Completion of the project within this timeframe will be a legally binding commitment in the grant agreement.
It is anticipated that successful projects will be able to commence in the first quarter of 2024.
Grant Funding and Co-Contribution
The program provides grants on a 1:3 basis (between the government and the successful applicant). Grants of between $100,000 and up to $750,000, (excluding GST), are available on a competitive basis.
All grants require a cash co-contribution from the applicant. In-kind contributions are excluded
(i.e., non‑monetary resources).
Funds from other Victorian or Commonwealth Government programs cannot form part of the
co‑contribution (but can form part of the total project value).
Applicants will be required to provide quotations and estimates in support of their applications. Funding will not be provided for retrospective activities, (i.e., where project expenditure is incurred prior to execution of a Grant Agreement and project commencement).
Source: Made in Victoria – Energy Technologies Manufacturing Program | Business Victoria
Haines Consulting Group is a management consultancy firm specialising in business strategy, growth, government grants and new venture developments. If you need any assistance with a grant submission please contact us now for a confidential conversation.
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