Queensland Sugarcane Set To Power Nation’s Biofuels Future

Queensland’s sugarcane industry has welcomed the Federal Government’s $1.1 billion Cleaner Fuels Program, declaring the state is perfectly placed to lead the charge in clean energy and regional job creation.

The ten-year program aims to unlock economic opportunities from low-carbon liquid fuels such as biodiesel and sustainable aviation fuel.

CANEGROWERS CEO Dan Galligan said Queensland already has a head start, with global recognition for sustainable farming practices and an extensive transport network.

“Almost half of the Queensland’s sugarcane is recognised by the world’s three biggest sustainability gatekeepers as a global leader in sustainable farming. This gives immediate confidence to airlines, freight and heavy industry that local feedstocks meet global benchmarks,” Mr Galligan said.

He explained that Queensland’s cane rail system is another advantage.

“Our growing region stretches along the Queensland coastline, alongside major population hubs. We also have a cane rail network stretching thousands of kilometres, linking farms to mills and multiple deep-water ports,” Mr Galligan said.

“This footprint shortens supply chains, cuts costs, and de-risks a rapid scale-up of domestic low-carbon liquid fuels. With sugarcane feedstock alone, Queensland could deliver more than 30% of Australia’s aviation fuel demand.

“This is about positioning Queensland as the nation’s biofuels hub. It means cleaner fuels for airlines and motorists, thousands of new jobs, and billions in regional investment.”

Australian Sugar Manufacturers (ASM) CEO Ash Salardini praised the Federal Government’s leadership.

“The government must be commended for grabbing this once-in-a-generation opportunity with both hands,” Mr Salardini said.

He also stressed the importance of strong supply chain foundations.

“We have to get the foundations right on biofuels. The challenge isn’t technology anymore – it’s standing up a reliable, scalable, and cost-effective supply chain.

“This agenda requires a laser-like focus on targeted support for feedstock logistics and infrastructure. Without it we risk building a biorefining capability that relies on imported feedstock – swapping our reliance on imported liquid fossil fuels with a vulnerability for imported bioethanol from places like Brazil and India,” Mr Salardini said.

Both CANEGROWERS and ASM agree that towns such as Cairns, Mackay, Bundaberg, Townsville, Childers and Tully could become bio-precinct hubs, producing clean fuels, biogas and renewable electricity.

With the sugar industry already supporting 20,000 jobs and contributing $4.4 billion annually to the Queensland economy, the potential for growth is significant.

“If we get it right, we’ll unlock thousands of jobs across regional Queensland and beyond, demonstrating that the net-zero ambition will bring good paying jobs to regional communities across Australia,” Mr Salardini said.

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