Biofuels Push Could Unlock New Future For Burdekin Cane Industry

CANEGROWERS says Queensland’s growing biofuels industry could create major new opportunities for Burdekin cane growers. Photo source: CANEGROWERS

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Queensland’s push to kick-start a domestic biofuels industry could unlock significant new opportunities for the Burdekin’s sugarcane sector, according to CANEGROWERS CEO Dan Galligan.

Mr Galligan welcomed the Crisafulli Government’s recent $25 million investment into biodiesel production at Ampol’s Lytton Refinery in Brisbane, describing it as an important first step towards building a stronger and more resilient economy while paving the way for future growth across regional industries.

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“While this project may not directly involve sugarcane, it’s an important step in establishing the kind of industry that, with the right investment and policy settings, can unlock significant opportunities for cane growers,” Mr Galligan said.

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Queensland’s sugar industry has long advocated for the expansion of a domestic biofuels sector, with the potential to significantly increase ethanol production, generate more green electricity through sugar mills and eventually produce advanced biofuels such as sustainable aviation fuel.

With the Burdekin recognised as one of Australia’s largest sugar-producing regions, Mr Galligan said local growers could play a major role in helping power Queensland’s renewable fuel future.

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“This is about more than cleaner energy – it’s about building a stronger, more resilient economy, creating new markets for growers, adding value to every tonne of cane, and backing regional jobs and investment,” he said.

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“It’s also about fuel security. Recent global disruptions have shown how exposed Australia is to supply shocks, and building a domestic biofuels industry helps reduce that reliance.”

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Mr Galligan said ensuring sugarcane remained central to future biofuel production would be critical to delivering the industry at scale and strengthening long-term opportunities for regional Queensland communities.

The announcement comes amid growing national discussions around fuel security, regional manufacturing and reducing Australia’s reliance on imported fuel supplies.

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In recent weeks, the Queensland Government announced plans to strengthen the State’s fuel security through expanded local drilling, refining and storage capacity, including unlocking additional infrastructure opportunities at ports across Queensland.

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Official expressions of interest have also opened under the new Accelerating Fuel Infrastructure Program, inviting industry proposals for fuel refining and storage projects on government-owned land and ports in Townsville, Mackay, Gladstone, Abbot Point, Bundaberg and Brisbane.

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Member for Burdekin, Minister for Natural Resources and Mines and Minister for Manufacturing Dale Last said the focus was now on future-proofing the industry and creating long-term opportunities.

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"We know what the challenges are and I’m looking at the opportunities going forward, because that's where we can make the greatest change and get the most benefit," Mr Last said.

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Federal Member for Dawson Andrew Willcox said recent fuel shortages had exposed critical gaps in Australia’s fuel storage capacity, particularly for regional and agricultural communities.

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“This crisis has exposed Australia’s vulnerability to global supply shocks of critical liquid fuels, including in Dawson,” Mr Willcox said.

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“We must protect our economic foundations by scrapping the Safeguard Mechanism costs on refineries and lifting the minimum stockholding obligation. This is the only way to ensure that during global disruptions, our tractors keep moving and our supermarket shelves stay stocked.”

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CANEGROWERS said it would continue working with government and industry partners to ensure momentum in the biofuels sector translates into practical outcomes for growers and regional communities across Queensland.

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