10th February 2026
NSW's small to medium manufacturing sector has the potential to reduce its gas consumption by 75% by 2050 with the right policy support, future-proofing industry and helping to tackle climate change.
A new report, Future Proofing NSW Small to Medium Sized Industry: A Decarbonisation Roadmap, released today by the Nature Conservation Council of NSW, shows that by supporting this sector to get off gas will deliver long-term economic and employment benefits for regional NSW.
Small to medium industries, representing 12% of NSW's gas use, are not expected to reduce gas use to 2050 under current policy settings according to the report. Coordinated policy action from the NSW government is crucial to help these industries overcome existing barriers to get off gas.
By improving electricity network readiness streamlining and simplifying grant programs, lifting workforce capability, and unlocking timely capital investment, total gas use for small to medium manufacturers in NSW can be reduced from 14.5 PJ to 3.1 PJ by 2050.
Quotes attributable to Eve Altman, Clean Energy Campaigner, of the Nature Conservation Council of NSW:
"As the NSW government looks to develop a Gas Decarbonisation Roadmap, it's crucial that all types and sizes of industry are supported to get off polluting gas.
"Anyone who's paid an energy bill in NSW knows how expensive gas is. It's no different for businesses here.
"These businesses currently fall through the cracks in Federal and State policy, meaning it's much harder for them to get the support they need to decarbonise.
"By supporting these businesses to shift to proven technology like heat pumps, the NSW Government could shore up Australian manufacturing, support almost 8,000 businesses to keep over 100,000 jobs in NSW and support regional economies."
Case studies
1. After participating in an NSW government heat pump feasibility study pilot program, pharmaceutical company AstraZeneca installed a heat pump in their Sydney manufacturing plant which saw a 46% reduction in gas use. This shows how important government support is in helping small to medium manufactures overcome barriers and kickstart their gas substitution journey.
2. In 2024, plastics manufacturer Quenos went into administration, blaming both the rising cost and unreliable supply of gas. Rising gas costs pose a financial risk for all manufacturers in NSW. A strong policy strategy is needed to support the small to medium manufacturing sector to move off gas and onto more reliable energy sources.
