Introduction

Amidst the backdrop of rising energy costs and an increasingly competitive business landscape, the productive use of energy by manufacturing companies is more important than ever. The Queensland Government’s Manufacturing Energy Efficiency Grants (MEEG) program is designed to help manufacturers across the state reduce energy consumption and emissions, lower costs, and enhance their competitive edge.

About the MEEG program

The MEEG program provides eligible manufacturers with grants to invest in energy-efficient equipment and processes. By helping manufacturers optimise their energy usage, the Queensland Government is not only supporting economic growth but also contributing to the broader sustainability goals of reducing greenhouse gas emissions.

The program is administered by the Department of Regional Development, Manufacturing and Water and is an implementation activity under the Queensland Energy and Jobs Plan released in September 2022. It also complements the Queensland Government’s Advanced Manufacturing 10-Year Roadmap and Action Plan.

As our team at 100% Renewables conducts the technical assessments for the grant funding applications, we are beginning to observe some interesting patterns in the types of projects and their impact on driving energy savings across various industries. Based on progress so far, it’s clear that the program is making strides in helping businesses reduce their energy use and carbon emissions.

Program guidelines and eligibility

The MEEG Program supports eligible Queensland-based manufacturing SMEs by reimbursing up to 100% of eligible project costs for lighting projects and up to 75% for other approved projects undertaken by SME manufacturers. Grants range from $7,500 to $50,000 (excluding GST).

To be eligible for the MEEG Program, an applicant must be a Queensland-based SME (that is, with between five and 200 full-time equivalent employees) whose principal activity and majority annual turnover is derived from manufacturing, as defined under Division C of the Australian Bureau of Statistics’ Australian and New Zealand Standard Industrial Classification (ANZSIC).

Proposed projects must be able to demonstrate at least a 10% reduction in energy use or carbon emissions directly related to project implementation and align to one or more of the project focus areas listed below:

• Compressed Air Improvements
• Electrification (from gas or fuel-based process to electric)
• Heat pumps
• Industrial refrigeration
• Industrial HVAC system
• Lighting
• Energy Monitoring Systems and Energy Action Plans
• Replacement of equipment to a more energy-efficient model OR replacing parts of equipment (motors, fans, compressors, heaters, conveyors) to make the equipment more efficient

For more information please refer to the Round 2 program guidelines.

Project breakdown and key insights

The most frequently implemented energy-saving measures we have seen come through are compressed air improvements, lighting upgrades, and the adoption of electric forklifts, which together account for the majority of all project applications. These three project types are significant not only because of their volume but also due to their meaningful contributions to energy savings.

• Compressed air improvements: These projects make a noticeable contribution to the program’s overall energy savings, particularly by reducing energy demand in air-intensive production processes. They lead to process energy reductions well in excess of program requirements, enhancing efficiency across a range of applications including tyre and foam manufacturing.
• Lighting upgrades: Lighting upgrades have proven to be one of the most effective measures in terms of energy savings, consistently delivering a large percentage reduction in lighting energy use, a major consumer of energy in many facilities. Their high impact is typically due to the significant efficiency gains achieved in retrofitting older lighting systems such as fluorescent and halogen lighting with much more efficient LED alternatives, which also reduces maintenance costs.
• Electric forklifts: The transition to electric forklifts is a popular and impactful measure, demonstrating strong process energy reductions together with multiple benefits like improved indoor air quality and reduced noise. Electric forklift projects are playing a key role in reducing fossil fuel dependence of program participants, while supporting productivity objectives.

Other effective projects include:

• Motor upgrades: These have shown substantial benefits, providing significant energy savings and process improvements. They represent a valuable energy-efficiency measure within the program, contributing to operational efficiency across industries.
• Welder upgrades: Although the energy savings per project are modest, welder upgrades deliver noticeable process efficiency improvements, especially in industries that rely heavily on welding processes, such as sheet metal fabrication and bespoke engineering services.
• Pump and heating upgrades: While less common, these projects still offer tangible benefits by improving energy efficiency in specific systems, contributing to the broader goals of the program.

Conclusion

The MEEG program is providing manufacturers with the funding they need to reduce upfront barriers to investment and stimulate action to improve operational efficiency while reducing emissions. If you’re a Queensland business considering energy-efficiency projects, now is the perfect time to apply for the MEEG program and join the growing list of successful participants driving meaningful energy savings in their operations.

Round 2 is currently open for applications and will remain open until 30 June 2025 or until all funding is allocated. For more details, see the MEEG Program website at: https://www.rdmw.qld.gov.au/manufacturing/manufacturing-assistance-programs/meeg.

If you need help developing a climate transition strategy and action plan, or a climate risk assessment, contact us today to learn how we can support your transition. Reach out to  Barbara or Patrick for more information.

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