Australia has released a new National Bioenergy Feedstock Strategy designed to accelerate development of the nation's bioenergy sector, potentially creating a $15 billion annual feedstock opportunity by 2050 whilst addressing fuel import dependency and decarbonising hard-to-electrify transport and industrial sectors.
The strategy, released by the federal government, establishes a national framework for building a larger, more competitive and sustainable bioenergy feedstock industry through co-ordination between government, industry and supply chains. It recognises that Australia's agricultural and forestry sectors, combined with organic waste streams from commercial and municipal sources, represent a substantial untapped resource base.
Australia currently imports or sources from overseas crude more than 90% of the 56 billion litres of liquid fossil fuels it consumes annually. A mature domestic bioenergy sector could theoretically supply more than 40% of Australia's projected liquid fuel demand by mid-century, according to government estimates.
The strategy identifies five priority areas for industry development: improving access to market-ready feedstock data, supporting innovation, strengthening regional supply chains, developing credible sustainability and certification systems, and building industry capability. The framework aims to unlock investment, create revenue opportunities for farmers and regional communities, and establish a competitive, scalable and internationally connected industry.
Bioenergy, including low-carbon liquid fuels and renewable gases produced from organic feedstocks such as agricultural waste and wood, remains one of the largest renewable energy sources globally, accounting for nearly 60% of renewable energy consumption in the European Union.
Companies developing bioenergy infrastructure in Australia are positioning themselves to capitalise on the emerging market. Delorean, an ASX-listed operator, has been developing anaerobic digestion facilities since 2011 and is transitioning towards a build-own-operate model to generate long-term recurring revenue from owned assets.
The company's first wholly-owned facility, located in Adelaide's Salisbury precinct, is nearing completion. Designed to process 70,000 tonnes annually of organic waste from the Adelaide metropolitan area, the facility is expected to produce 210 terajoules per annum of renewable gas and 6,000 tonnes of biogenic food-grade liquid CO2, with a long-term offtake agreement secured with Origin Energy for biomethane injection into the Adelaide gas network.
Delorean's development pipeline extends across multiple Australian states, including projects in Sydney and Victoria backed by government grant funding. The group has delivered four commercial-scale facilities for third parties since 2014 and plans to replicate its owned-asset model across further sites.
Anaerobic digestion technology is well established in international markets, with mature supply chains and proven operational performance. The challenge for Australia lies not in technology adoption but in establishing reliable, scalable feedstock supply chains aligned with energy infrastructure and long-term offtake agreements.
The government strategy directly addresses these supply-side constraints, reflecting industry consensus that feedstock security—not technology innovation—represents the foundation for sector growth.
