Carbon Innovation Grants Program: WA’s $15 million push to decarbonise heavy industry
The Western Australian Government, through the Department of Water and Environmental Regulation, has opened the second round of its Carbon Innovation Grants Program (CIGP). The initiative is part of a $15 million Climate Action Fund pledged in the 2021 election and aims to accelerate the transition of the state’s heavy‑industry sector toward net‑zero emissions by 2050.
Round 2 makes $4.3 million available for up to ten projects, supplementing the $4.24 million awarded in the inaugural round. Grants are split between two streams – feasibility studies (up to 50 % of project costs, capped at AU$500,000) and pilot projects or capital works (up to 25 % of costs, capped at AU$1.5 million) – ensuring that early‑stage ideas can be tested and, where successful, scaled to full‑size deployment.
Key technologies funded in the current round
Three of the ten selected projects exemplify the diversity of approaches the CIGP is backing:
- Seaweed biorefinery for plastic alternatives. Researchers will convert harvested macro‑algae into bio‑based polymers that can replace conventional petro‑derived plastics in packaging. Seaweed‑derived polymers have a lower carbon footprint because the feedstock sequesters CO₂ as it grows, and the conversion process requires less energy than traditional polymerisation. A recent Wired feature highlights how similar biorefineries in Europe are already delivering commercially viable materials.
- Carbon capture from ammonia production. One project will retrofit an existing ammonia plant to extract CO₂ using solvent‑based capture technology, then convert the captured gas into valuable by‑products such as urea‑based fertilizers. Ammonia accounts for roughly 1 % of global CO₂ emissions, and the International Energy Agency has called ammonia “the next big frontier for carbon capture.” Reuters reported in September 2023 that pilots in Europe showed up to 90 % CO₂ removal efficiency, making the WA effort technically feasible (Reuters, 2023).
- Hybrid electrification of quad trailers for regional transport. The feasibility study will assess a diesel‑battery hybrid powertrain for heavy‑load quad trailers that operate on remote mining roads. By coupling a modest battery pack with a downsized diesel engine, the system can achieve up to a 30 % reduction in fuel consumption while preserving range for long‑haul trips. TechCrunch recently covered a similar hybrid concept that cut freight emissions by 25 % in the United States (TechCrunch, 2024).
How the technology fits into WA’s broader decarbonisation agenda
Western Australia’s economy is anchored by mining, petrochemicals, and fertilizers – sectors that together emit more than 10 % of the state’s total greenhouse gases. The CIGP’s focus on carbon abatement and sequestration directly supports the state’s “Net‑Zero by 2050” target outlined in the Western Australian Climate Policy. By funding pilots that demonstrate commercial viability, the program reduces the risk premium that private investors typically attach to emerging low‑carbon technologies.
Climate Action Minister Reece Whitby said the grants “turn innovation into tangible outcomes that can be rolled out across our heavy‑industry corridors,” echoing a sentiment expressed by CSIRO senior researcher Dr Lara Nguyen, who noted that “pilot‑scale carbon capture projects are the critical bridge between laboratory breakthroughs and industry‑wide adoption.”
Application process and timeline
All proposals were submitted through the Department’s SmartyGrants portal by the March 12, 2025 deadline. The evaluation criteria emphasized value for money, projected emissions reductions, and the presence of an industrial partner willing to provide a cash or in‑kind contribution. Results are slated for release in August 2025, after which successful applicants will receive milestone‑based payments in arrears, as stipulated in the grant agreement.
Interested parties can view the full list of recipients and detailed guidelines on the Carbon Innovation Grants Program website. The department also offers webinars on completing the financial model and navigating eligibility requirements.
Implications for the global clean‑tech landscape
Western Australia’s approach illustrates how regional governments can de‑risk early‑stage clean‑tech projects without relying solely on private capital. By allocating a modest share of a larger climate fund to feasibility studies, the state creates a pipeline of demonstrable solutions that could be exported to other resource‑intensive jurisdictions. The seaweed biorefinery, for instance, leverages with‑already‑established supply chains in the Southern Ocean, while the ammonia‑capture module may become a template for fertilizer producers worldwide.
For further analysis of how government‑backed grant programs are shaping the clean‑energy market, read more on Globally Pulse Technology.
