Bioenergy Australia CEO Shahana McKenzie
New analysis from over 50 representatives from the agriculture, waste, energy and government sectors unveiled key recommendations to boost policy, investment and data frameworks for scaling low-carbon fuels and gas production.
Australia has the resources to power a thriving low-carbon fuels and renewable gas industry, with new analysis highlighting the key steps needed to unlock this potential and translate it into economic growth and emissions reduction.
Australia has more than enough feedstock to underpin a $10 billion-a-year industry supporting over 26,000 new jobs, according to the ARENA Bioenergy Roadmap. The pathways to unlock these opportunities were uncovered at Australia’s first National Feedstock Roundtable, convened by Bioenergy Australia and facilitated by Deloitte, which brought together more than 50 representatives from the agriculture, waste, energy and government sectors.
The roundtable marked the first time these sectors came together to chart a path forward for the National Feedstock Strategy and identify the actions needed to accelerate Australia’s low-carbon liquid fuels and renewable gas industries, both of which are critical components of the nation’s clean energy transition.
Discussions explored Australia’s feedstock opportunities and challenges, as well as the synergies in scaling low-carbon liquid fuel (LCLF) and renewable natural gas (RNG) production. Key recommendations included mapping national bioenergy potential, investing in innovation, improving data transparency, supporting long-term investment and demand frameworks, and expanding programs to accelerate industry growth.
“Australia has the resources and capability to become a global leader in low-carbon fuels – but policy consistency, infrastructure investment and data transparency are essential to unlock that potential,” said Bioenergy Australia CEO Shahana McKenzie.
“Industry is ready to invest. What’s needed now is a coordinated, whole-of-government policy that connects farmers, waste managers, energy producers, infrastructure owners and customers into a national feedstock ecosystem.”
A new report summarising the insights from the roundtable highlights that while demand for low-carbon fuels and renewable gas is rising, establishing a substantial domestic industry will require targeted government support to build regional infrastructure, standardise feedstock mapping, and align carbon certification with international markets.
Key recommendations captured in the report include:
- Coordinating supply and demand-side policies to provide market certainty and attract private capital. The report found 50% of feedstock suppliers and aggregators who participated at the roundtable require clear demand signals
- Investing in critical regional infrastructure and logistics hubs;
- Consolidating feedstock mapping and carbon intensity data under the forthcoming National Feedstock Strategy
- Greater investment in, and the expansion of existing programmes to boost deployment of low carbon liquid fuels and renewable natural gas.
Moving from insight to action, the group of representatives recommended the government undertakes the following:
- Map Australia’s bioenergy potential: Conduct a national feedstock supply analysis to identify where biomass resources can be practically and sustainably used.
- Invest in innovation and pilot projects: Fund demonstration projects that improve feedstock supply and lower carbon intensity through new crops, novel feedstocks, planting on marginal land, carbon capture, and advanced processing technologies.
- Improve data sharing and transparency: Strengthen national data coordination to help industry assess project viability, identify value opportunities, and inform investment decisions.
- Develop long-term investment frameworks: Establish clear government guidance and funding plans, supported by robust cost–benefit and carbon assessments, to remove barriers and direct public investment where it will have the most impact.
- Support the Renewable Natural Gas (RNG) sector: Provide targeted funding to help bridge the early cost gap between renewable and fossil gas and accelerate market development.
- Expand existing clean energy programs: Broaden initiatives like Future Made in Australia, the Hydrogen Production Tax Incentive, and Hydrogen Headstart to include renewable gas and low-carbon fuels.
- Introduce a demand-side policy for low-carbon fuels: Develop clear frameworks and performance targets to stimulate demand, support emissions reduction, and keep costs low for consumers.
- Consult on the $1.1 billion Cleaner Fuels Program: Engage with industry to ensure the production incentive effectively reduces barriers and drives uptake of low-carbon liquid fuels.
“Unlocking Australia’s feedstock potential isn’t just about resources – it’s about connections,” continued McKenzie. “By the entire supply chain coming together to recognise feedstock as a priority across sectors, and committing to work with government on effective strategies, the industry has demonstrated it’s ready to unlock Australia’s feedstock potential and maximise its value. This is how we build a resilient, national clean fuels industry that benefits farmers, communities, and the environment alike.”
About low-carbon liquid fuels:
Low carbon liquid fuels can be used as drop-in or blended fuels, compatible with existing vehicles, machinery and infrastructure – allowing fuel-reliant sectors to reduce emissions without the cost, delay or disruption of overhauling their existing equipment and operations. This means that Australian planes, cranes, trucks, boats and tractors can keep running as usual—while reducing emissions.
And the benefits go far beyond reducing emissions. Low carbon liquid fuels can build our national fuel resilience and reduce reliance on imports, futureproof international travel, keep our industries competitive, and deliver thousands of regional jobs – fuelling strong economic growth and resilient communities.
About renewable gas:
RNG can be injected directly into existing gas networks without requiring modifications to equipment or infrastructure, enabling gas-reliant sectors such as steel, food processing, glass, brick, cement, and manufacturing to reduce emissions while maintaining their existing operations and assets.
As Australia enters a pivotal stage in its clean energy transition, and with gas shortages set to intensify, RNG is likely to be one of the most affordable and practical ways to strengthen energy security while providing Australia’s $100 billion manufacturing sector with a viable path to decarbonisation.
About Bioenergy Australia, the Low Carbon Fuels Alliance of Australia and New Zealand (LCFAANZ) and the Renewable Gas Alliance (RGA):
The Renewable Gas Alliance aims to create a collaborative environment to drive a higher level of understanding, uptake and engagement relating to the renewable gas opportunities in Australia. Whilst we acknowledge there are other forms of renewable gas, the focus of this Alliance is Renewable Natural Gas (RNG), also known as Biomethane.
Bioenergy Australia is the national industry association committed to accelerating Australia’s bio economy. Through targeted advocacy, campaigns, education, industry building and allied sector engagement, we’re:
Enabling decarbonisation of Australia’s hard to abate sectors
Enhancing energy security, supply and supporting the transition of Australia’s energy system
Growing Australia’s economy and providing jobs and economic development including for regional Australia
Enabling the development of Australia’s circular economy
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