The New South Wales government has today unveiled its Renewable Fuel Strategy, marking a major expansion in the state’s industrial and clean energy ambitions.
The initiative commits up to $170 million to support renewable fuel and biomethane production, broadens the scope of the existing Renewable Fuel Scheme to encompass biomethane, and sets a clear framework to scale up domestic renewable fuels in NSW.
According to the government, this new strategy cements NSW’s position as a national leader in renewable fuel development.
The funding aims to spur new projects and technologies, while strengthening regional economies, cutting emissions from sectors like heavy transport and manufacturing, and boosting fuel and energy security at a time of ongoing global volatility.
Bioenergy Australia CEO Shahana McKenzie praised the announcement, stating: “Today’s announcement shows the NSW government is prepared to lead the next phase of Australia’s low-carbon industrial transition.
“Renewable fuels are no longer a future ambition for NSW.
“Today’s announcement moves them into the mainstream of the state’s clean energy transition and provides the certainty needed for investment, construction and new regional jobs.”
McKenzie highlighted that the strategy is the sort of policy “that builds capability at scale,” claiming that “it will stimulate new biomethane and biofuel production, activate agricultural residues and waste streams, and boost local manufacturing, transport and logistics activity across regional NSW”.
These developments are expected to offer significant benefits to regional areas, increasing investment and local employment opportunities in the clean energy sector.
The state government also emphasised the vital role of renewable fuels in sectors that face challenges in electrification, such as transport, aviation, mining, and manufacturing.
McKenzie added: “Heavy transport, mining fleets, manufacturing, maritime and aviation all need viable low carbon alternatives right now.
“Renewable fuels and biomethane offer immediate, scalable solutions for these sectors, and NSW is positioning itself to meet that demand.”
NSW’s expanded Renewable Fuel Strategy is seen as having national implications, as Australia aims to decrease its reliance on imported fuels.
McKenzie underlined the wider impact, noting: “This is a significant moment for NSW and for Australia.
“It signals that renewable fuels are essential to a resilient, low-carbon economy and that the state intends to compete in a global market that is growing at extraordinary speed.”
Bioenergy Australia has pledged to work closely with government, industry, researchers, and investors to ensure the strategy supports project delivery and commercialisation, with the goal of achieving real emissions reduction and scaling up a domestic renewable fuels industry.
