Industry Growth Program Update

Program Overview:

The Industry Growth Program (IGP) supports innovative SMEs undertaking commercialisation or growth projects that will build Australian capabilities in priority areas for the National Reconstruction Fund (NRF). These priority areas include:

• renewables and low-emissions technologies,

• medical science and manufacturing,

• transport,

• value-add in agriculture, forestry and fisheries,

• value-add in resources,

• defence capability, and

• enabling capabilities (including advanced manufacturing, AI, quantum technologies, robotics, etc.).

The $392 million IGP was announced in the 2023-24 Federal Budget Announcement and replaced a similar program (Accelerating Commercialisation). The stated objective of the program is to help businesses commercialise their ideas, expand operations, and engage in national and international markets, positioning them for future investment and growth opportunities, including through the NRF.

Recipients to date:

Since launching the IGP in late 2023, the Australian Government has awarded $29 million in grants (7% of allocated funding) to 25 companies across the two funding streams.

Early-Stage Commercialisation:

• A total of $1,452,880 has been awarded to 8 recipients, with an average grant amount of $181,610 per project.

• The highest Early-Stage Commercialisation grant to date is $250,000 (the maximum grant amount under this stream, awarded to 3 of the 8 recipients), and the lowest is $59,500.

Commercialisation & Growth:

• A total of $26,560,423 has been awarded to 17 recipients, with an average grant amount of $1,562,378 per project.

• The highest grant under this stream to date is $4,277,616 (Cauldron Molecules Pty Ltd), while the lowest is $200,000 (Tetrisize Oceania Pty Ltd).

• The majority of Commercialisation & Growth grants awarded to date (approx. 70%) have been between $200,000 and $2mill.

Top Recipients:

• Cauldron Molecules Pty Ltd has received the largest grant of $4.28mill to build the world's first fully automated 10kL hyper-fermentation line for producing food, animal feed, fibre and fuel.

• Allume Energy Pty Ltd has been awarded $3.77mill to expand its world first ‘behind the meter’ SolShare technology, enabling apartment residents to increase their solar use and reduce power.

• Seed Terminator Pty Ltd has secured $3.1mill to scale up production and manufacturing capability of its technology which mechanically destroys weed seeds during harvesting.

NRF Sector Focus:

• Renewables and Low Emission Technologies: Several IGP recipients are driving sustainable solutions, with grants issued for projects involving hydrogen fuel cells, graphene manufacturing, resource recovery, and solar energy technology.

• AgriTech & Food Innovation: Harvest B Pty Ltd (alternative protein blends) and Magic Valley Pty Ltd (cultivated meat) are recipients of funding, highlighting projects to drive growth in sustainable food production.

• Medical Science: Notable IGP recipients in the Medical Science space include Electrogenics Laboratories Ltd who are seeking to scale up their innovative patient radiation dosimeter.

• Value-added Agriculture, Forestry and Fisheries: Several recipients are focused on improving agriculture outcomes, including Forager Automation Pty Ltd which is developing a robotic blueberry harvester. 

• Defence: Acacia Systems Pty Ltd has received funding to enhance defence capabilities through surveillance technologies for maritime security.

• Enabling capabilities: Several recipients are pursuing advanced manufacturing, robotic or other projects to grow ‘enabling capabilities’. For example, projects include strengthening Australia’s industrial capability through the development of a universal vehicle controller for autonomous robotics in defence, marine conservation, and firefighting.

There is no publicly available data on the distribution of funding by priority sectors. Our analysis is based on the description of the projects that have been funded. While the grants announced to date appear to have good coverage across the NRF sector focus areas, projects with a sustainability focus are prevalent in the list of grant recipients. 

Next Steps:

If you're looking to establish your eligibility for the IGP, please reach out and we can assist you.

Be aware that before applying for IGP grant funding, you must first apply for and complete a commercialisation Advisory Service. Eligible businesses will be connected with an Industry Growth Program Adviser, who will provide specialised guidance to support your commercialisation and growth opportunities and priorities. Once completed, applications for IGP grant funding can then be made.

It's also important to consider the potential impact of the upcoming Federal election, as policy changes could affect the availability of IGP funding in the coming months. We will be monitoring comments from both sides of the Federal Government to understand how the election and election results might impact the operation of the IGP going forward.

Get in touch if you need further information with accessing the IGP, or if you’d like to understand what other funding opportunities are aligned with your projects.