As the government calls for submissions to the National Bioenergy Feedstock Strategy, Daily Cargo News investigates what progress is being made towards equipping the maritime sector with its clean energy needs.
“AUSTRALIA'S low-carbon fuels sector is at a historic turning point. Momentum has never been stronger, and it will only accelerate in the coming months.”
Shahana McKenzie, CEO of Bioenergy Australia, October 2025.
“Rising demand for LCLF’s is a tailwind for a new wave of advanced domestic refining capacity.”
Securing our Fuel Future: Resilience Through Low Carbon Liquid Fuels, March 2025
“We have all the ingredients in Australia to be a global clean energy superpower, and the Future Made in Australia fund will help bring that potential to reality.”
Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King March 2025.
Bioenergy Australia sees the first National Bioenergy Feedstock Strategy as marking “a game-changing moment”.
Chief executive Shahana McKenzie says that it will create “a clear pathway for homegrown low carbon fuels” and demonstrate “a clear signal to global investors that Australia is open for business in low-carbon fuels”.
The Department of Agriculture, Fisheries and Forestry issued the National Bioenergy Feedstock Strategy discussion paper on 2 October inviting submissions by 7 November.
What about the supply of biofuels for shipping and ports in Australia?
Maritime Industry Australia chief executive Angela Gillham said there was currently little in the way of biodiesel, renewable diesel, or sustainable aviation fuel (SAF) being produced in Australia.
Just Biodiesel, with an existing 50,000MT capacity biodiesel plant and Oztek Holdings, with its 40,000MT rendering plant. Both businesses are co-located at a regional site in northern Victoria and have been operating for 20 years.
Just Biodiesel director Peter Chomley said the companies’ expertise was in processing and trading in fats and oils, predominantly tallow, used cooking oil (UCO) and canola oil.
He said most of the tallow and UCO was exported to Neste Singapore or the US for use in renewable fuels. This has amounted to around 600,000MT per annum.
Just Biodiesel has secured accreditation with International Sustainability and Carbon Certification (ISCC), as this globally recognised system promotes sustainable, traceable, and deforestation-free supply chains, enabling the company to export to EU and NZ markets.
Mr Chomley said the biodiesel industry in Australia currently operated at 20% capacity utilisation because of the feedstock price issue.
“When the feedstock price was below mineral diesel, we have supplied the full biodiesel capacity into the domestic market 50,000MT per annum. for a five-year period,” he said.
He said little biodiesel was being used in shipping, but he hopes that would change.
In his submission to the National Bioenergy Feedstock Strategy, he said it was uneconomic to produce renewable diesel fuels in Australia, where there was no support program, hence most of the feedstock was exported.
As for biofuel bunkering trials, Mr Chomley said Just Biodiesel provided ISSC approved B100 for a trial conducted in Sydney Harbour by Viva Energy and the Royal Caribbean Group earlier this year.
This was a first-of-its-kind operation to deliver marine biofuel to a cruise ship in Australia. According to Richard Xin, Viva Energy’s general manager specialities, marine & defence, this was a crucial step towards establishing lower carbon marine fuels in Australia.
MIAL senior advisor sustainability and industry transformation, Clare Grandison, said other industry players were engaging in bioenergy production for use in Australia and overseas.
She spoke of Rio Tinto’s biofuels pilot in n partnership with Midway Limited, to explore the potential of pongamia seed oil as a feedstock for renewable diesel.
MIAL also reported on the ANL partnership with Woolworths, undertaking the first containerised shipping biofuel trial.
As part of the CMA CGM Group, ANL aims to achieve net zero carbon by 2050 and the saw its 2022 biofuel powered sailing trial as a major step towards decarbonisation of ocean freight.
The Deloitte report, Securing our Fuel Future: Resilience Through Low Carbon Liquid Fuels, completed for Bioenergy Australia earlier this year, emphasised that maritime transport remained critical for Australian trade.
“With 87% of international trade volume moving by sea, Australia’s key export commodities — including iron ore, coal, and natural gas — depend entirely on maritime fuel security,” it stated.
The report concluded that based on CSIRO estimates, Australia could produce 8,100 ML of low carbon liquid fuels (LCLF) by 2040 and 12,800ML by 2050; enough to displace almost 20% of expected imports required in 2040.
If the National Bioenergy Feedstock Strategy comes to fruition, as expected before the end of this year, the maritime sector, including Australian ports, are expected to have a much better idea on what’s possible for the biofuel industry to achieve, with the right level of incentives and investment.
This is the first in a series of articles on bioenergy for the maritime sector. The next one will focus on hydrogen, ammonia and methanol, while the third will concentrate on electrification and energy efficiency.