The NSW Government late last week released its Renewable Fuel Strategy. What’s involved in the strategy, and how are other states prioritising biofuels?
The Strategy commits up to $170 million in funding for renewable fuel and biomethane production and expands the Renewable Fuel Scheme – which was previously focused on green hydrogen – to include biomethane.
Up to $130 million funding will be provided through the Net Zero Manufacturing Initiative to support emerging technologies and build local manufacturing capacity.
Renewable diesel trials will also be carried out in transport, construction, mining and agriculture sectors, along with crop research and development trials to test and demonstrate biomass production.
Bioenergy Australia chief executive officer Shahana McKenzie said the Strategy provides much-needed policy direction.
“Renewable fuels are no longer a future ambition for NSW,” she said. “Today’s announcement moves them into the mainstream of the state’s clean energy transition and provides the certainty needed for investment, construction and new regional jobs.”
McKenzie said this policy would help build “capability at scale” and be especially critical for sectors unable to electrify quickly.
“Heavy transport, mining fleets, manufacturing, maritime and aviation all need viable low carbon alternatives right now,” she said. “Renewable fuels and biomethane offer immediate, scalable solutions for these sectors, and NSW is positioning itself to meet that demand.”
An Australia-wide commitment
NSW is being praised as a national leader by launching a dedicated renewable fuels strategy, so how is the rest of Australia tracking in its commitment to bioenergy?
The Federal Government announced its $1.1 billion Cleaner Fuels Program in mid-September, forming part of the Future Made in Australia initiative. This is focused on low carbon liquid fuels (LCLF) such as waste materials, biomass, and renewable hydrogen.
Submissions for comment are open until December 19, with the Federal Government seeking input for the framework and key design principles of the program.
The Federal Government launched its National Bioenergy Feedstock Strategy soon after, which will be focused on developing clear, coordinated direction to support sustainable production of bioenergy feedstock.
The WA Government announced in mid-October that it would commit $1.2 million towards the development of an Advanced Biofuels Strategy.
Churchill Capital Consulting and GHD will partner to deliver the Advanced Biofuels Strategy, which will look to leverage WA’s vast supplies of oat, wheat and barley stubble to explore the production of bioethanol and other biofuels.
A comprehensive economic analysis into WA’s biomass feedstocks, supply chains and technology pathways will be conducted as part of preparations.
Queensland has a goal to be an Asia-Pacific hub for biorefining in an effort to enhance fuel security, support economic diversification, and create high value jobs. At the same time, the state is supporting local agriculture to become a $30 billion industry by 2030.
Queensland has also launched biofuels mandates as part of the Liquid Fuel Supply Act 1984 that requires fuel sellers in the state to sell minimum amounts of bio-based fuels such as E10.
Tasmania aims to launch its Future Clean Fuels Strategy in late 2025, while Victoria and South Australia don’t have dedicated biofuels strategies in play. The Northern Territory, on the other hand, is eager to become a leader in sustainable aviation fuel (SAF) development, which blends with conventional jet fuel to decarbonise the aviation industry.
Ernst and Young was engaged by the NT Government in 2024 to undertake a feasibility study into the development of a SAF industry in the NT.
Australia has demonstrated its commitment to biofuels in various shapes and forms, with NSW the clear bellwether in this space. With this nascent industry proving to be a low-hanging fruit for industrial decarbonisation, expect plenty more biofuels developments on a national and state scale.
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