The federal government's Climate Ready program is providing $458,370 to Air Change to build 'The Green Machine' - an air-conditioning system which is expected to be up to 12 times more power efficient than traditional systems.

"Air Change will use a combination of technologies, including solar, to significantly reduce power consumption. This system will eliminate the need for refrigeration compressors, with the only external energy requirement being to drive the fans," says minister for innovation, industry science and research, Kim Carr.

The technology is designed for use in new buildings and can also be retrofitted in existing buildings.

The $75 million Climate Ready program offers matching grants from $50,000 to $5 million to help develop innovative solutions to climate change. It is part of the Clean Business Australia initiative - a $240 million partnership over four years between the Rudd government and industry to deliver energy and water-efficient projects with a focus on productivity and innovation.