The funding could help Teys roll out new sterilisation equipment at its Tamworth meat processing site.

"Instead of using 10 litres a minute, it'll only use 126 millilitres per sterilisation," general manger of operations Michael Wells said.

"We've purchased one trial unit to make sure that it actually works and is sustainable, and if it is, we'll roll it out.

"There's a lot of money involved in changing over to these new style of sterilisers, so we would definitely be interested in any funding available to assist with that."

NSW Water Minister Melinda Pavey said Teys was a great example of a company looking to save money and water.

"They've reduced water use by 50 per cent over 10 year, while their production has grown," she said.

"Business and industry are very aware that investing in that type of technology is not only good for the environment and preserving water, but also economically."

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