NSW minister unveils Renewable Fuel Strategy

REDUCING emissions and underpinning economic growth in the Hunter Valley and the Port of Newcastle are key objectives of the Renewable Fuel Strategy recently announced by the government of New South Wales

Speaking at the Asia Pacific Hydrogen Summit, state climate change and energy minister Penny Sharpe spoke of the importance of the Hunter Valley Hydrogen Hub in addressing the hard-to-abate sectors like manufacturing, farming and transport.

She also spoke about how the renewable fuels strategy would help NSW meet its emissions reduction targets.

Renewable fuels are low carbon alternatives to fossil fuels, such as biomethane, sustainable aviation fuel, green hydrogen, biodiesel and renewable diesel.

Ms Sharpe said a strong renewable fuels sector would accelerate the transition from fossil fuels because these alternatives offered low carbon solutions for hard-to-electrify sectors like shipping, manufacturing, aviation and heavy transport.

“This is a win-win-win opportunity: a win for jobs, a win for fuel security and a win for the planet,” Ms Sharpe said.

She said the government was “boosting local production of renewable fuels to diversify the economy and deliver new jobs, growth and enhanced energy security for our state”.

Ms Sharpe said the Renewable Fuels Strategy “shows our commitment to building a robust and resilient renewable fuels industry right here in NSW”.

She also mentioned the importance of the partnerships NSW had with Japan and South Korea to build and expand export opportunities.

The minister also drew DCN’s attention to the Port of Newcastle Clean Energy Precinct, as it acts as an export hub for clean energy products and technologies, including hydrogen and ammonia.

The precinct is supported by a $100 million Commonwealth Grant administered by the state government.

The strategy outlines 20 actions to boost the state's renewable fuel industry, including:

• Expanding the Renewable Fuel Scheme to include biomethane.
• Up to $170 million in funding for renewable fuel and biomethane production in NSW.
• Funding research and innovation to improve industry capability, including crop research and development trials to test and demonstrate biomass production opportunities in partnership with primary producers.
• Supporting the expansion of GreenPower certification to additional renewable fuels and co-products.

The strategy was developed in collaboration with government and industry stakeholders and informed by feedback gathered from the 2024 discussion paper.

It invites collaboration across industry, researchers, investors and communities to make renewable fuels a core part of NSW’s clean energy future.