New National Biofuel Strategy to Generate $15bn and Create Thousands of Jobs

by Jessica Wang (Townsville Bulletin) Australian farmers could reap up to $15 billion a year from a biofuel revolution designed to slash the nation’s reliance on imported fuel and shore up energy security. -- Farmers will be placed front and centre in Australia’s foray into biofuels, which could generate up to $15 billion a year for producers supplying the canola, grains and other products necessary to make the next generation of aviation fuel and bio diesel.

The push for a domestic biofuel market comes after the closure of the Strait of Hormuz exposed Australia’s fuel supply vulnerability given the country imports more than 90 per cent of its liquid fuels.

While some feedstocks — the resources used to create the fuels — like canola, and sugar are already exported overseas at scale, the National Bioenergy Feedstock Strategy set to be announced by Agriculture Minister Julie Collins at the Bush Summit on Wednesday (August 26, 2026), identified five priority areas for “collective effort” to boost the growing sector.

Steps include improving industry data, strengthening emissions accounting and certification frameworks, boosting regional supply chains and sector capability. It also calls for a national approach, acknowledging that “no single feedstock, region or technology will deliver the scale required” to ensure Australia can meet growing global demand.

The report states the feedstock industry could create about 26,000 new jobs by 2050 and inject $15bn into the economy annually once mature.

Australian Sugar Manufacturers chief executive Ash Salardini said sustaining the industry’s 20,000 jobs “will require us to make more than just sugar”.

“That is why we fully support ambitious low-carbon liquid fuel and bioenergy feedstock agenda. It is good for regional jobs, fuel security, emissions and long-term fuel affordability,” Ms Salardini said.

Australian Forest Products Association acting chief executive Richard Hyett said a national plan would help “maximise the potential for forest industries to enhance our contribution, grow public awareness of bioenergy and help achieve Australia’s climate ambition”.

GrainGrowers said it was “critical” for Australia’s local biofuels industry to be “built on domestic feedstocks… so we don’t simply replace dependence on one imported fuel source with another”.

“Leveraging Australia’s abundant feedstock resources presents a significant opportunity to support Australia’s decarbonisation, strengthen fuel security, drive domestic manufacturing and deliver economic growth in regional communities,” said boss Shona Gawel.

However Labor’s biofuel push faces fierce opposition from the Coalition after a consultation paper exploring biofuel usage mandates by airlines, miners and farmers showed it could “increase compliance costs for obligated entities”. READ MORE

Excerpt from Australia Minister for Agriculture, Fisheries and Forestry: The Albanese Labor Government is committed to supporting new opportunities for our farmers, producers and regional communities and is today launching the National Bioenergy Feedstock Strategy.

The National Bioenergy Feedstock Strategy recognises Australia’s comparative advantage in agricultural and forestry systems, the potential to significantly increase the scale of feedstock production to meet growing demand, and the significant economic opportunity for producers and regional Australia.

Australia produces world-class agricultural and forestry commodities, such as canola, sugar and other crops that are already supporting bioenergy production overseas.

As Australia works towards a lower-emissions future, bioenergy - including low carbon liquid fuels - can help reduce emissions, strengthen fuel security and support new economic growth.

Australia’s farmers can and should play a key role in securing more home-grown fuel production in Australia and the National Bioenergy Feedstock Strategy will complement the Albanese Labor Government’s $1.1 billion Cleaner Fuels Program and the design of market measures to drive demand to make sure they do.

Drawing on significant input from stakeholders across the supply chain, the Strategy provides a shared direction for governments, industry and producers to work together to support sustainable growth of Australia’s feedstock industry.

It identifies priority areas for collective action including improving market ready data, supporting innovation, strengthening regional supply chains, building credible sustainability and certification systems, and improving sector capability.

These foundations will support the industry to grow in a way that complements food, fibre and forestry production, maintains community confidence and maximises opportunities for producers and regional communities.

Quotes attributable to Minister for Agriculture, Fisheries and Forestry, Julie Collins MP:

“A strong bioenergy feedstock sector can support Australia’s emissions reduction ambitions, strengthen fuel security and deliver economic benefits across the country.

“Australia already produces and exports around $6 billion of high-quality feedstocks each year, that support bioenergy production overseas.

“We heard from farmers and producers across the supply chain about the need for a clear national direction for Australia’s bioenergy feedstock sector and this new Strategy responds to that call with a clear framework for sustainable growth.

“This is another way the Albanese Labor Government is supporting Australian producers and regional communities while helping position Australia for the opportunities of the future.” READ MORE