Australian developer Optimal Renewable Gas (ORG) has been awarded a $20 million government grant to accelerate construction of the Griffith Biohub, a $58 million project that will convert agricultural waste from New South Wales's Riverina region into renewable biomethane.
The funding was granted under the NSW Low Carbon Product Manufacturing Grant programme, part of the state government's $480 million Net Zero Manufacturing Initiative. Construction is scheduled to begin in late 2026, with commercial operations targeted for 2028.
In its first phase, the facility will process up to 100,000 tonnes of agricultural organic waste per year using anaerobic digestion technology, producing around 460 terajoules of gas annually — sufficient to meet the needs of more than 30,000 households.
Residual nutrients will be returned to farmland as fertiliser. A second stage is planned to expand throughput to more than 250,000 tonnes of organic waste from across the wider Riverina. The project is also assessing whether biogenic carbon dioxide produced during the process could be captured for industrial use.
Managing director Mike Davis said the project would demonstrate commercial-scale biomethane production and provide a template for replication across regional Australia.
ORG has set a target of ten large-scale biohubs in development by 2030, with combined annual production of up to ten petajoules.
Key stakeholders include Jemena Gas Networks, Baiada Poultry and Osaka Gas Australia. Jemena, which already operates Australia's first biomethane injection plant at Malabar, has signed a memorandum of understanding with ORG to help establish a renewable gas market.
ORG chairman Dr John Hewson, the former Liberal Party leader, described the Griffith project as a model of regional circular economy development.
Optimal Renewable Gas secures $20m grant for Griffith biomethane hub
