Grants will be up to 50% of total eligible project expenditure, up to $2.5 million per project. A higher maximum grant amount may be considered if the total project expenditure is greater than $5 million, and the applicant can demonstrate a greater expected outcome of the project against South Australia’s mid to long-term energy needs.

Distribution of grant funding will be assessed on a case-by-case basis which may include providing funding in a phased approach, based on pre-agreed performance milestones for the project and set out in the grant agreement.

Where proponents submit more than one application, they must demonstrate that they have the financial capacity to match co-funding for all applications in the event that more than one of their project bids are successful.

Eligible expenditure

Eligible project expenditure considered for funding must be:

• a direct cost of the project. This can include exploration costs, drilling costs, production costs, infrastructure costs, technology development costs etc.
• incurred by the applicant within the project period (between project commencement date and completion date).

Grant funding will not be provided for:

• day-to-day operation expenditure including administration or marketing activities
• leadership or administrative staff costs not directly related to project management tasks for the project, including Chief Executives, accountants and lawyers
• financing, interest, insurance or freight costs
• early-stage proof of concept activities, feasibility studies or investments
• business cases or costs associated with preparing applications and project management fees and costs to submit an application
• retrospective funding, where projects have been completed or have commenced prior to the application being submitted
• legal or land access (including native title, heritage or landowner engagement and agreement-making).

Applications will be assessed against the eligible criteria, including an overall consideration of meeting South Australia’s mid to long-term energy needs. Successful applications will be selected on the basis of meeting the following competitive technical merit and applicant criteria.

The 2025 SA Gas Initiative aims to build a portfolio of high quality, technically and economically sound projects, with the most substantiated prospects of project delivery before the last quarter of calendar year 2028. All proposals will be assessed by an evaluation panel, including energy resource specialist members from the Department for Energy and Mining, who will seek advice from an independent industry expert.

Applications will be assessed on a case-by-case and aggregate grant program basis. Conforming grant applications must specify and address the following assessment criteria.

Targeted outcomes

Describe and substantiate how the project will:

• Help in meeting gas supply shortfalls predicted to impact South Australia from 2028
• Support lower energy prices in South Australia
• Contribute to the achievement of South Australia and Australia’s greenhouse gas reduction targets
• Support broader economic and regional benefits in South Australia, where possible

Likelihood and materiality of success

Details of, and substantiation for:

• Gas supply or gas capacity (as relevant) forecasts expected from the project, including their associated range of uncertainty
• The assessed probability of success for project delivery
• Follow-up work stimulated by successful outcomes of the project

Project delivery

Details of, and substantiation for

• Expected costs for project delivery
• Expected timelines for project delivery (e.g. project schedule)
• How gas supplies or gas capacity (as relevant) are to be delivered to South Australian gas markets (i.e. access to infrastructure)

The following key criteria must be satisfied for a proposal to progress to be considered eligible for the 2025 SA Gas Initiative.

Tenure and shovel-readiness

Proposed projects within South Australia under the Energy Resources Act 2000 (ER Act) must hold, or have realistic plans to hold, a relevant licence (e.g. Petroleum, Regulated Substance, Gas Storage, Pipeline or Special Facility licence class). Supported projects can be claimed to meet existing minimum work program or expenditure requirements.

Companies based, or with operations in, South Australia that could supply new gas from sources outside the state will also be considered for grant funding.

Licensees and operators must be in compliance with the terms and conditions of their licence under the ER Act (if applicable).

The applicant must demonstrate all reasonably necessary access to land (including native title agreements where required) and facilities.

Financial and technical capability

The applicant must demonstrate sufficient capacity to meet co-funding requirements for the proposed project, as evidenced through financial or other relevant information provided in the application including independently prepared financial statements.

The applicant must demonstrate sufficient technical and operational capability to deliver the proposed project.

The applicant must be in good standing under the ER Act with no outstanding liabilities. The Department for Energy and Mining’s Environmental Liability Management Policy (PDF, 291.3 KB) applies to any project licensed under the ER Act.

Successful 2025 SA Gas Initiative grant applicants will be notified of their success or failure to secure grant funding via phone and/or email, in due course.

Commercially sensitive information included in the successful applications will not be released and unsuccessful grant applications will be held confidential. Applicants will then be formally notified in writing in due course.

An agreement in the form of a Funding Agreement will be executed prior to the issue of grant funds. Such agreement will include agreed criteria to measure the delivery of project outcomes, to ensure that all proposed commitments are met, and will provide for repayment clauses in the event that the successful applicant does not meet agreed milestones outlined in the Schedule of the Funding Agreement. Force majeure situations will be defined in the Funding Agreement.

Grant recipients will be required to comply with standard reporting requirements under the ER Act and Energy Resources Regulations 2013. In addition, recipients will be required to share knowledge with the Australian Government Department of Industry, Science and Resources, as well as Fund contributors.

All Funding Agreements will be entered into with the successful applicant. Funding will need to be committed, if not distributed, by the close of the 2025–26 financial year.

The Draft Funding Agreement will provide the legal framework for the obligations of each party and terms and conditions in relation to the funded project.

Applications must be submitted by 4:00 pm ACDT, Friday 28 November 2025.

All applications for grants should be made electronically to the Department for Energy and Mining via email:

• DEM.SAGI2025@sa.gov.au

Applications should be marked 'Commercial in Confidence – Contains 2025 SA Gas Initiative Project Proposal'.