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On Island Processing Program

Applications for round 2 funding are now open

The Tasmanian Government has committed a total of $15 million the On-Island Processing Program (the Program) to grow the Tasmanian forestry sector’s on‑island processing capabilities. The first round of the Program was launched in 2021 with funding committed to seven projects.

Applications are now open for the second round of the Forestry On-Island Processing Program. $8.5 million of grant funding is available under this Program to grow the Tasmanian forestry sector’s on-island processing capabilities, increase the value of Tasmanian wood, expand the state’s sovereign capabilities, reduce the need for imported forest-based products, and create employment opportunities.

A particular focus of the second round will be increasing the value of Tasmania’s new plantation hardwood resource, while also continuing to provide funding support to new, innovative uses for other types of timber.

This focus will be achieved with $5 million of the total funding pool reserved for projects which are primarily focussed on processing Tasmania’s hardwood plantation resource, supporting the transition to this new sustainable resource as it enters the supply chain in increasing volumes to the timber processing sector.

Grants will be made available to eligible timber processors to implement processing projects with demonstrated feasibility, a strong business case and demonstrated value-adding to the resource. The new resource offers the opportunity to develop quality products such as: sawn timber, veneer, engineered wood products or new high value timber products.

Projects which will be highly regarded are those best able to demonstrate viability and those providing the greatest increase in the value and/or return from Tasmania’s hardwood plantation.

Applications should be submitted using the online SmartyGrants system.

Contact

Any queries can be directed to the Resources Policy Branch via email: forests@stategrowth.tas.gov.au.

Links

Frequently Asked Questions

Does the Department provide a business case template for applications?

We have not provided a standard template for a Business Case for the OIPP2 as the information can vary depending on the nature and complexity of each project. The information you provide must be sufficient to meet the requirements of the guidelines, including supporting your claims of project viability.

How will Right to Information requests be handled for the OIPP2

The Program Guidelines state “Information provided to State Growth may be subject to disclosure in accordance with the Right to Information Act 2009 (the Act)”. Each right to information request (and any related relevant information which is located in our records) is assessed by an independent delegate, who determines whether information is to be released or whether it can be exempt. If information about a business is located, in response to a request under the Right to Information Act 2009, the Act contains a requirement to consult with third party businesses if information about their business affairs is considered for release. This means under the Act a business which has applied for the OIPP2 would have an opportunity to comment on the release or withholding of their business information. While the final decision is yours as to the information you provide, applicants should closely read the program information and guidelines (at https://www.stategrowth.tas.gov.au/oipp2) to ensure all requirements are fully met for their project and the grant application.

The Act can be found at the link below for reference.

https://www.legislation.tas.gov.au/view/html/inforce/current/act-2009-070

Can a biomass to energy project be considered under the OIPP2

It may be possible for a biomass to energy project to be considered under the program if it meets all requirements of the guidelines.

Applicants should closely read the program information and guidelines (at https://www.stategrowth.tas.gov.au/oipp2) to determine if their particular project and feedstock would meet all program requirements.