en.Wedoany.com Reported - The New South Wales (NSW) Government has announced a AUD 225 million (approximately USD 161 million) funding package to support the local manufacturing of low-carbon products and renewable energy components.
The funding, jointly announced by Treasurer Daniel Mookhey, Energy Minister Penny Sharpe, and Domestic Manufacturing Minister John Graham, falls under the state government's Net Zero Manufacturing Initiative, which opened for applications on June 2. The initiative targets commercial and construction-ready projects with the potential for scaled production, the ability to attract private investment, and the capacity to create skilled jobs across New South Wales. Eligible categories include renewable energy components such as wind turbine towers, solar modules, batteries, and transmission cables; low-carbon products like blended cement, cross-laminated timber, and biofuels; and emerging clean technologies covering next-generation renewables, energy storage solutions, and agricultural systems.
Recipients are required to match or exceed the state government's funding contribution on a 1:1 basis, a move expected to leverage at least AUD 225 million in private investment. This funding round specifically targets regions such as the Hunter, which boasts a skilled workforce and established supply chains conducive to developing the state's low-carbon industrial base.
This announcement builds on existing commitments to the Hunter Valley Solar Foundry. This 500MW solar module manufacturing facility, developed by Sunman Group in Black Hill, Hunter Valley, has already received AUD 20 million in state government support and is expected to create 300 jobs once operational. In December last year, the Australian Renewable Energy Agency (ARENA) conditionally committed up to AUD 151 million to the project under the federal Solar Sunshot Program, the largest single commitment under the AUD 1 billion program. The facility will utilise Sunman's lightweight solar technology and, upon full operation, will become Australia's largest solar module manufacturer and the only one in New South Wales. Construction is expected to begin in mid-2026, with an initial annual capacity of 300MW, gradually expanding to 500MW as new production lines come online.
The Hunter Valley Solar Foundry is part of a national effort to build Australia's domestic solar manufacturing capacity. The federal government's Solar Sunshot Program, designed to support Australian-made solar photovoltaic modules for both domestic and export markets, has already backed several manufacturers. South Australia-based Tindo Solar received AUD 34.5 million through the program to expand its Mawson Lakes facility's annual capacity from 20MW to 180MW. Meanwhile, ARENA has launched a AUD 60 million ultra-low-cost solar research and development funding round targeting breakthroughs in cell efficiency and balance-of-system innovation. As reported by PV Tech in August last year, Tindo Solar remains the only manufacturer producing fully Australian-made solar modules. PV Tech Premium previously discussed Australia's domestic module manufacturing capabilities with Tindo Solar CEO Richard Petterson. The upstream supply chain is also receiving attention, with Australia showing potential in polysilicon supply; ARENA analysis suggests the country could help fill an estimated 350,000-tonne supply gap by 2040.
The AUD 225 million funding is a continuation of the early phase of the Net Zero Manufacturing Initiative, which has already supported over 40 projects, creating approximately 1,000 jobs across the state. Supported projects under the initiative include Green Timber Tech, which received AUD 4.8 million for manufacturing sustainable building materials. This investment is part of New South Wales' efforts to meet its legislated emissions targets, including a 70% reduction by 2035 and achieving net-zero emissions by 2050.
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