Friday, March 13, 2026
Australia is exploring new pathways to strengthen energy security while reducing emissions. One promising solution involves converting forestry residues and agricultural waste into low-carbon liquid fuels. This approach is currently being advanced by the Commonwealth Scientific and Industrial Research Organisation (CSIRO).
Australia currently imports more than 50 billion litres of refined petroleum products each year. Approximately 60 per cent of those imports consist of diesel fuel. Domestic production covers only about one-fifth of national demand. The gap has exposed the country to volatility in global energy markets.
These vulnerabilities have become increasingly visible during disruptions in international oil supply chains. As a result, policymakers and industry stakeholders are exploring domestic alternatives. Biomass-derived fuels have emerged as a potential long-term solution.
The development of alternative fuels is being driven by two major factors. These are the need to reduce greenhouse gas emissions and the need to strengthen energy independence.
These points were highlighted by Dr Daniel Roberts, who leads the Energy Technologies Research Program at the Commonwealth Scientific and Industrial Research Organisation. Roberts is scheduled to speak at the upcoming Renewable Fuels Summit, where the role of biomass fuels in Australia’s energy future will be discussed.
Liquid fuels currently account for more than half of Australia’s final energy consumption. They also represent roughly 30 per cent of the country’s national emissions.
Roberts explained that reducing emissions remains a priority. However, ensuring reliable fuel supply is equally important. These two concerns have driven alternative fuel research for many years.
Electric vehicles often dominate public discussions about the energy transition. However, many industries cannot easily switch to electricity.
Sectors such as aviation, international shipping, and heavy transport remain highly dependent on liquid fuels. Mining operations and remote agricultural sites also rely heavily on diesel-powered equipment.
Electrification in these sectors presents significant challenges. Infrastructure limitations often prevent rapid transitions.
Roberts noted that these industries require energy-dense fuels capable of operating in demanding environments. For these applications, liquid fuels will remain essential.
Biomass-derived alternatives are therefore being studied as a realistic option.
CSIRO researchers are focusing on biogenic fuel production. This approach involves converting organic waste materials into liquid fuels.
Several feedstock sources are being considered. These include forestry residues, plantation waste, agricultural by-products and urban organic waste streams.
Large quantities of such materials already exist within Australia’s economy. In many cases, they are underutilised or treated as waste.
Roberts explained that these waste streams could be transformed into valuable energy resources. Recognising their potential is an important step toward building domestic fuel supply.
Biomass fuels could also support regional industries. Forestry and agriculture may benefit from new revenue streams.
Producing biofuels at scale will require significant industrial infrastructure. Facilities capable of processing thousands of tonnes of biomass each day may be needed.
Such plants could resemble large power stations in size and complexity. Many would include advanced gasification systems and carbon capture technologies.
Electrolysers delivering hundreds of megawatts of power may also be required to support certain fuel production pathways.
Developing this infrastructure will require substantial investment. Early projects are expected to face higher costs and technical challenges.
However, these challenges are viewed as part of the innovation process. Initial projects often provide critical experience for future development.
CSIRO is already involved in several international and domestic research initiatives. One recent collaboration involved a joint trial between Australia and India.
The project demonstrated a large-scale method for partially replacing coal with agricultural waste during steel production. The trial was considered a significant technical milestone.
CSIRO is also working with the Heavy Industry Low-Carbon Transition Cooperative Research Centre. The partnership focuses on reducing reliance on natural gas within heavy industry.
Researchers are examining biomass gasification pathways that could help supply low-carbon energy to industrial sectors.
These efforts aim to lower emissions while maintaining industrial productivity.
On the commercial front, CSIRO has joined the AFWI Fibre to Fuels project. The initiative is designed to demonstrate how plantation residues can be converted into liquid fuel.
The project involves collaboration across the forestry value chain. It is supported by industry partners and regional stakeholders.
The technology demonstration will focus on plantation regions in Tasmania, Western Australia and the Green Triangle region of Victoria.
These areas produce large volumes of plantation timber. Residual biomass from forestry operations may provide suitable feedstock for fuel production.
If successful, the initiative could support new energy industries in regional communities.
Although industry interest has increased, long-term policy clarity remains essential. Infrastructure investments in fuel production often involve operational lifetimes of 30 years or more.
Investors therefore require confidence that stable markets will exist for the fuels produced.
Roberts noted that companies must be certain demand will remain consistent before committing to large-scale infrastructure projects.
Government support is also playing a role. The Australian Government recently committed $1.1 billion to accelerate development of the country’s low-carbon liquid fuels sector.
This funding package has been welcomed by industry stakeholders. The Low Carbon Fuels Alliance of Australia and New Zealand described the investment as a turning point for domestic fuel supply.
More than 300 organisations participate in the alliance, including feedstock producers, technology developers and energy companies.
Together, they aim to build a resilient and sustainable fuel industry for the future.
Source- https://woodcentral.com.au/
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Tags: Australia biofuel development, biomass energy, CSIRO, forestry residues, low carbon liquid fuels, woodworking UK
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