The Australian Renewable Energy Agency (ARENA) will provide up to $3.25 million in funding to MGA Thermal to deliver as many as five front-end engineering design (FEED) studies aimed at accelerating the commercialisation of thermal energy storage (TES) technology and supporting the shift toward industrial electrification.
At the centre of MGA Thermal’s system lies its proprietary MGA Block technology, which stores energy as latent heat for long-duration use.
Renewable electricity is converted into heat and captured within the blocks before being dispatched on demand as high-grade thermal energy suitable for heavy industrial processes.
ARENA CEO Darren Miller said the initiative targets one of the most complex challenges in Australia’s transition to net zero.
“Decarbonising industrial process heat is critical to Australia’s net zero transition, but it remains one of the hardest problems to solve,” Miller said.
“By supporting detailed FEED studies, this project could give industrial customers greater confidence in the technical and commercial viability of TES, helping move promising projects closer to investment and deployment.”
The FEED program will develop five high-potential commercial opportunities in partnership with industrial customers.
Each study will produce detailed technical designs, cost estimates, delivery schedules, risk assessments and commercial frameworks to build investor confidence and accelerate project readiness.
MGA Thermal CEO Mark Croudace said the ARENA funding marks another milestone in the company’s mission to enable large-scale decarbonisation for industry.
“ARENA’s backing gives industry the capacity to move forward with technical and commercial certainty, enabling investment in TES projects,” Croudace said.
“We’re excited to work with forward-thinking industrial companies who are ready to lead their transition.”
Insights from the FEED studies will be shared across the sector to provide guidance on the commercial and operational potential of TES systems, as well as the barriers and pathways to wider adoption.
The findings are expected to highlight how reliable, dispatchable heat from renewable sources can replace natural gas and other fossil fuels in energy-intensive manufacturing and processing.
For ARENA, the investment aligns with its broader strategy to support emerging technologies that reduce emissions, boost energy productivity and improve the competitiveness of Australian industry.
By fostering early-stage commercial development, the agency aims to bring innovative clean energy solutions closer to large-scale deployment.
This funding also strengthens Australia’s position in the growing global thermal storage market, where low-cost, scalable technologies will play a key role in balancing renewable generation and delivering reliable heat for hard-to-abate sectors.
The project is supported under ARENA’s Industrial Transformation Stream (ITS), which focuses on decarbonising industrial facilities through electrification, fuel switching and innovative clean technologies. Round 3 of the ITS program is currently open for applications.
