Grants awarded to support Australian industry's move to renewable heat

MEDIA RELEASE

16 December 2025

Australian Industry Renewable Heat Accelerator Announces Projects to Support Manufacturing Shift from Gas to Renewable Process Heat 

The Australian Industry Renewable Heat Accelerator has today announced 12 projects that will support manufacturers and industry associations to progress practical, low-carbon alternatives to gas-fired process heat. The projects span a broad range of sectors actively assessing renewable heat options including food and beverage, paper, pulp, and packaging, bricks, pavers, and concrete masonry, commercial laundries, and agriculture.

The announcement comes amid renewed national focus on gas supply constraints, price volatility and competitiveness challenges facing Australian industry. Manufacturers are responding by exploring low-carbon, reliable and cost-effective renewable heat technologies that can protect against price shocks and strengthen energy security.

The Accelerator builds on this momentum by tackling early-stage barriers and providing the support and resources needed to turn ambition into projects that deliver technical performance, reliability and scalability while cutting emissions and maintaining production standards.

Funding recipients:

Industry Associations

• The Australasian Pulp and Paper Technical Association (Appita) – Pulp, Paper and Packaging Renewable Heat Transition Pathway

• Australian Dairy Products Federation (ADPF) – Australian Dairy Industry Decarbonisation Pathway Study

• Australian Food and Grocery Council (AFGC) – Renewable Heat Opportunities in Australian Food and Grocery Manufacturing 

• Think Brick Australia and the Concrete Masonry Association of Australia (CMAA) – Renewable Heat Feasibility Study for Bricks, Pavers and Concrete Masonry Sectors

Manufacturers, Processors and Producers

• Barret Burston – Malting Facility Heat Pump Feasibility Study

• Brick Lane Brewing – Renewable Heat Options Study for Brewery

• Burra Foods – Dairy Processor Renewable Heat Decarbonisation Roadmap

• George Weston Foods (DON Castlemaine) – Smallgoods Manufacturer Process Heat Electrification Study

• GrainCorp – Food Oils Refining Facility Heat Pump Study

• Linen Services Australia – Commercial Healthcare Laundry Thermal Battery Feasibility Study

• Su Xin Foods – Food Manufacturing Decarbonisation Feasibility Study

• Wingham Beef – Rendering Plant Renewable Heat Masterplan

Tom Connell, Accelerator Co-Lead said "The projects we’re supporting clearly demonstrate the commitment and ambition of industry to reduce reliance on expensive and polluting gas and move forward with renewable process heat solutions. This is about businesses taking decisive action and showing that they are ready to get on with the transition."

Emma Peacock, Accelerator Co-Lead said "Manufacturers are looking for clear, practical pathways to reduce their exposure to energy and emissions risks. The Accelerator is about partnering with manufacturers and industry associations to build confidence and translate emerging options into practical, well-tested pathways. These projects will generate the insights needed to support reliable, cost-effective and resilient process heat over the long term.”

Jarrod Leak, CEO of the Australia Alliance for Energy Productivity (A2EP) said "Decarbonising process heat is a major challenge facing Australian industry, but there are solutions available right now. Through the Accelerator, organisations are being supported to investigate and adopt technologies that will future-proof their operations and strengthen Australia’s competitive position in a low-carbon economy."

Process heat accounts for significant energy use and emissions across manufacturing sectors and is traditionally supplied by gas and other fossil fuels. Transitioning to renewable heat via technologies including industrial heat pumps, thermal storage and direction electrification can cut emissions, improve energy resilience and support Australia’s 2030 and 2050 climate targets. 

The Australian Industry Renewable Heat Accelerator is a philanthropy backed initiative delivered with support from A2EP. It works with industry to expand renewable heat capability and demonstrate the scalable solutions required to maintain a strong, competitive manufacturing sector.

Media contact

Tom Connell tom@sustainableadvisory.com.au

Emma Peacock emma@emmapeacock.com