Australia: Government excludes hydrogen and used oils from bioenergy strategy

Australia refocuses its national biomass plan on agriculture and forestry, excluding green hydrogen and urban waste from eligible feedstocks.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2€/month*
then 14.90€ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

The Australian government has outlined a new direction for its bioenergy policy with the release of a consultation paper on its National Bioenergy Feedstock Strategy. This plan, led by the Department of Agriculture, explicitly excludes certain feedstocks such as used cooking oil, municipal waste, and non-biogenic sources like green hydrogen.

This decision reflects a strategic shift toward materials derived directly from the agricultural and forestry sectors. The government aims to support the development of local supply chains based on established resources such as canola, tallow, woody biomass, sugarcane, and sorghum.

Targeted financial support for mature pathways

The plan will be implemented in coordination with the Cleaner Fuels Program, which is backed by AUD1.1bn ($710mn) over ten years. The programme aims to boost production of low-emission liquid fuels, including renewable diesel and sustainable aviation fuels, by focusing on technically proven solutions.

The exclusion of emerging technologies, such as Fischer-Tropsch and alcohol-to-jet processes, signals a preference for established agricultural biofuel pathways, particularly the hydroprocessed esters and fatty acids method. Authorities also confirmed that hydrogen will not be part of the bioenergy feedstock pool, although it remains eligible for support through the AUD2bn Hydrogen Headstart Program.

Waste streams removed from the immediate scope

While used oils and municipal waste remain relevant in a broader circular economy context, they are not included in this agriculture-driven strategy. This reflects a clear separation between support policies for different energy pathways.

The consultation paper has received positive responses from industry representatives. The Australian Forest Products Association welcomed the recognition of the economic potential of wood and forestry residues for bioenergy production.

A strategy linked to agricultural exports

Australia currently exports nearly AUD4bn worth of agricultural feedstocks that could be converted into biofuels domestically. The government views this as an opportunity to enhance energy sovereignty and generate local added value.

Stakeholders, including producers and industry associations, have until November 7 to submit their feedback. A separate paper detailing the operational design of the Cleaner Fuels Program is still pending.

Vermont’s energy regulator authorises final review of a 2.2 MW project led by Clean Energy Technologies to convert agricultural waste into renewable electricity.
The increase in Brazil’s biodiesel blend mandate to 15% has reignited calls for stronger regulatory supervision as prices climb and budget constraints limit enforcement.
Waga Energy strengthens its presence in Brazil, betting on a rapidly structuring market where biomethane benefits from an incentive-based regulatory framework and strong industrial investment prospects.
John Cockerill and Axens launch NesaBTF, an industrial torrefaction technology designed to optimise biomass supply, with targeted ambitions in the growing sustainable aviation fuel market.
A R550mn grant enables Johannesburg to launch a waste-to-energy project with a 28 MW capacity under a 25-year public-private partnership model.
ENGIE signs a 15-year agreement with CVE Biogaz for the purchase of biomethane produced in Ludres, under the Biogas Production Certificates mechanism, marking a structuring step for the sector's development in France.
The first phase of a green methanol project in Inner Mongolia has successfully completed biomass gasifier technical tests, marking a key milestone in Goldwind's industrial deployment.
Eni begins the transformation of its Priolo complex in Sicily with a 500,000-tonne biorefinery and a chemical plastic recycling plant, based on its proprietary Hoop® technology.
Waga Energy has launched a biomethane production unit in Davenport, Iowa, in partnership with the Scott County Waste Commission and Linwood Mining and Minerals, with an annual capacity exceeding 60 GWh.
German group Uniper has entered into a long-term supply deal with Five Bioenergy for biomethane produced in Spain, with deliveries scheduled to begin in 2027.
Hanoi is preparing a tax relief plan for biofuel producers to support domestic ethanol output ahead of the E10 mandate rollout planned for 2026.
Lesaffre and ENGIE Solutions have inaugurated a waste heat recovery unit in Marcq-en-Barœul, covering 70% of the site's thermal needs through two industrial heat pumps.
Biochar projects are drawing investor interest in India, but signing regulated offtake contracts has become essential to ensure market compliance and financial stability in the carbon sector.
EDF power solutions and Refocosta have inaugurated Colombia’s largest wood biomass power plant in Villanueva, with 30 MW of capacity and an annual output of 200 GWh injected into the national grid.
Copenhagen Infrastructure Partners invests in Nivalan Biokaasu, Finland’s largest bioLNG plant, with construction set to begin in late 2025 and operations scheduled for 2027.
The Netherlands' lower house voted to adopt RED III, including technical amendments, paving the way for timely transposition by January 1, 2026, in line with EU commitments.
Technip Energies has secured two engineering contracts from Repsol for an innovative waste-to-methanol facility in Tarragona, Spain, marking a strategic milestone in its partnership with Enerkem.
Energy producer CVE Biogaz launches a facility in Tarn capable of processing 21,500 tonnes of biowaste per year to produce biomethane injected into the local gas network.
A bipartisan group of 47 lawmakers is calling on the US Environmental Protection Agency to maintain high biodiesel quotas to support local agriculture affected by falling exports to China.
Subsidised bio-LNG is gaining traction in European maritime transport, supported by strong demand and a narrowing price gap with unsubsidised volumes.

All the latest energy news, all the time

Annual subscription

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2€/month*
then 14.90€ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.