Cardinal George Pell announced the grant Monday, reported the The Courier-Mail.
The Church is opposed to research on cells harvested from human embryos, but has supported the use of adult cells.
Cardinal Pell said breakthroughs in adult stem cell research have the potential to lead to life-saving treatments, and «far surpass anything that has been attained in the area of embryonic stem cell research.»
«The Catholic Church always supports good science working from a good ethical foundation,» he added.