What makes decarbonisation commercially compelling

Aug 13, 2026

​Decarbonising Australian manufacturing isn’t something that happens from a desk. It starts on the factory floor.

That is why AMGC has been getting out and visiting manufacturers as part of the delivery of the $10 million SME Industrial Decarbonisation Fund, funded by the Australian Renewable Energy Agency (ARENA). The Fund is designed to help small and medium-sized manufacturers replace fossil-fuelled processes with electric alternatives, while improving the competitiveness and resilience of their operations.

The response from industry has been encouraging. Expressions of Interest have come from an extraordinarily diverse range of manufacturers – from small-goods manufacturers and dairies through to heavy equipment manufacturers, construction materials, med-tech, and automotive component manufacturers.

That diversity reflects an important point: there is no single pathway to industrial decarbonisation. Every manufacturer has a different processes, equipment, energy requirements and opportunities to improve.

Our recent site visits have brought this to life.

At Lovells Springs in Newcastle, we saw how replacing gas-fired furnaces with induction heating could reduce emissions while improving productivity, precision and product quality. At DECO in Sydney, the team is investigating new surface-coating processes that could reduce reliance on fossil fuels while maintaining the high-quality products it supplies to customers across Australia.

We have been speaking directly with manufacturers at industry events, including more than 140 manufacturers from Southern Strength and i3Net who came together to hear about how the Fund could support their business.

What stands out from these conversations is that manufacturers aren’t looking at the Fund simply through an emissions lens. They are considering investments that can strengthen supply chain resilience, reduce operating costs, lower emissions, and improve productivity, often delivering several benefits at once.

That is ultimately what makes industrial decarbonisation commercially compelling.

For Australian manufacturing to remain competitive, we need to modernise the processes behind the products we make. The SME Industrial Decarbonisation Fund is about helping manufacturers take that next practical step.

To learn more about the Fund, visit: https://amgc.org.au/decarbonisation-fund/. Or get in touch with us to discuss your business or arrange a site visit.

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