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NSW invests $225M to boost local clean energy manufacturing and technologies

03 Jun, 2026
The Australian government backs next-generation battery manufacturing



The New South Wales government is investing a further AU$225 million to boost domestic manufacturing, fast-track clean energy technologies, and secure skilled jobs across the state.

The current funding round targets commercial and construction-ready projects, supporting NSW businesses in expanding local production of renewable energy components, such as wind turbines, solar panels, and batteries, alongside low-carbon building materials like blended cement and biofuels.

To maximise the economic impact, successful grant recipients will be required to match or exceed the government’s funding dollar-for-dollar. The initiative builds on the existing Net Zero Manufacturing Initiative, which has already backed more than 40 projects and generated roughly 1,000 local jobs, including a solar facility in the Hunter Valley and a renewables hub in Western Sydney.

Treasurer Daniel Mookhey said: “By backing local manufacturing, we are helping build the industries that will power the next generation of jobs and growth in NSW.

“We want more of the products, materials and technologies needed for a low-carbon economy to be made right here, using skilled local workers.”

Minister for Climate Change and Energy Penny Sharpe emphasised that the package ensures NSW remains a producer, rather than just an importer, of critical clean technologies.

“This additional funding will help ensure NSW does not just import technology, but builds more of it locally to benefit communities and workers,” she said.

The investment also aligns with the state’s legislated targets to slash carbon emissions by 70 per cent by 2035, ahead of reaching net zero by 2050.

The program has already demonstrated success in driving down industrial energy costs. In Horsley Park, state funding for a new bioenergy facility turning organic waste into biomethane will soon allow a co-located brick plant to slash its natural gas reliance by 50 per cent.

Australian Manufacturing Workers’ Union state secretary Brad Pidgeon praised the package as a vital step toward creating secure, skilled roles in the state’s traditional industrial heartlands, while Business NSW chief executive Daniel Hunter noted the funds would allow local companies to scale up and invest with confidence.

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