Business & Investment

Gas Efficiency Grants

These grants offer matched funding of up to $50,000 to assist eligible businesses with the cost of a variety of gas-related projects that will:

  • improve energy productivity and affordability,
  • support jobs, and
  • reduce greenhouse gas (GHG) emissions.

What are the benefits of improving gas efficiency?

"Right now, it’s cheaper to buy Australian gas in Japan than it is in Victoria, which is putting pressure on local businesses, jobs, and household gas bills.” Ministerial Media Release, 7 June 2017

The Gas Efficiency Grants will support businesses to take practical action that results in more efficient use of gas, helping relieve gas cost pressures.

For large gas users, there are often many opportunities to improve efficiency such as upgrades to boiler or steam systems, industrial ovens or kilns, or recovering waste heat. Even improving the operation and maintenance of steam boilers can typically save up to 5% in gas use – that’s 5% less gas that your business needs to purchase.

Sustainability Victoria supported South Pacific Laundry to improve its steam distribution system by upgrading boilers and replacing steam traps, reducing gas consumption by 4-6%. The business also benefited from improved OH&S, better quality outputs, equipment reliability and a better understanding of the value of preventative maintenance. 

If you are unsure whether it is worthwhile investing in gas efficiency at your business, a good place to start is by learning more about potential opportunities. For example, participate in a Gas Efficiency Masterclass or apply for an Energy Assessment Grant.

What businesses can apply for grant funding?

Gas Efficiency grants are intended to support businesses operating in Victoria with an annual energy spend above $20,000 and using gas for equipment and/or processes that are core to the business operations. The types of businesses that can apply include, but are not limited to, manufacturers and processors.

Please note that some types of businesses and activities will not be eligible for funding, such as:

  • Commonwealth, State, or local government entities,
  • Any organisation that is applying for upgrades to premises owned by a government entity
  • Any organisation that is applying for upgrades to an office building - check out the Better Commercial Buildings grants instead
  • Any organisation that is applying for upgrades to equipment that is used for staff amenities – i.e. not core to the business operations

Note that a funding cap of $50,000 will apply to a business and its related entities. Similarly, SV may apply a funding cap to a franchise chain or group buying chain.

The complete eligibility criteria are published in the Grant Program Guidelines.

What types of projects can be funded?

Four different types of project activities are eligible for funding:

  • Capital equipment upgrades that result in improved gas efficiency or gas productivity.
  • Non-routine maintenance and repairs of existing equipment and systems that results in gas used more efficiently.
  • Fuel switching from gas to another energy source, provided that there is no increase in the GHG emissions or other environmental impacts.
  • Installation of metering equipment that will create immediate gas efficiencies and/or build the case for future investment in capital upgrades that will improve gas efficiency or gas productivity.

An eligible project may focus on just one or a combination of these activities.

There is flexibility as to whether your project improves gas efficiency or gas productivity. This concept is most applicable to a manufacturing or processing facility that is expanding its operations:

  • Gas efficiency means that the upgrade results in the business using less gas per annum, whilst producing or processing the same units of output
  • Gas productivity means that the upgrade results in the business using less gas per unit of output. The business may actually use the same or more gas per annum because the number of units of output has increased.

Further information about the types of projects that can be funded will be published in the Grant Program Guidelines.

How will applications be assessed?

Grants will be approved for funding on a rolling basis. Gas Efficiency Grants will be available until the total pool of funding, $2 million, has been fully allocated. Information about grants awarded to-date will be published on the Sustainability Victoria website, as recipients are announced. The grants opened for applications on 11 October 2017. No grants have been awarded yet.

How do I apply?

Step 1 - Download the guidelines

Download the Grant Program Guidelines and familiarise yourself with the eligibility criteria. Check if your business is eligible to apply and if the project you are proposing is eligible for funding.

Document | PDF | 572KB
Gas Efficiency Grants program guidelines
Document | DOC | 4162KB
Gas Efficiency Grants program guidelines - Word version

If you are interested in applying, please register your details to be kept informed about any announcements, changes, or upcoming information sessions for these grants. We will also share latest news about the Boosting Business Productivity program.

Register your interest to be kept informed


Step 2 - Download and complete the application form

As part of the application process, you will need to complete a survey on energy use. Refer to the Application form for guidance on completing either the Victorian Government or the Sustainability Victoria survey.

Document | DOC | 289KB
Gas Efficiency Grants application form

Step 3 - Review the Terms of Participation

Review the Terms of Participation in a Grants Program before submitting your application.

Document | PDF | 203KB
Terms of participation in a grants program

Document | DOC | 61KB
Terms of participation in a grants program - Word version


Step 4 - Submit your application

Submit your completed application form to grants.applications@sustainability.vic.gov.au

If successful, you will need to enter into a Funding Agreement (contract) with Sustainability Victoria. Review the template contract, and standard Terms and Conditions.

Document | PDF | 189KB
Gas Efficiency Grants Terms and Conditions 

Document | PDF | 333KB
Template funding agreement
Document | DOC | 82KB
Template funding agreement - Word version

Further information

If, after reading the Grant Program Guidelines, you have any specific questions, call 1300 363 744 or email grants.enquiries@sustainability.vic.gov.au