Forestry Industry Claims Biofuel Demand Will Be Met as Climate Goals Approach

South Australia's Forestry Industry Explores Biofuel Opportunities

South Australia’s forestry industry is exploring innovative ways to utilize timber waste as a potential source of aviation and shipping fuel. This initiative aligns with the country's broader efforts to reduce reliance on diesel fuels and transition towards more sustainable energy sources.

The federal government has identified the development and implementation of biofuels as a crucial component of its 2035 climate targets. To support this goal, the government announced the $1.1 billion Cleaner Fuels Program, which aims to foster the growth of low carbon liquid fuels. This program is expected to play a significant role in advancing the biofuels sector across Australia.

Nathan Paine, the chief executive of the South Australian Forest Products Association, highlighted the importance of partnerships between the forestry sector and biofuel manufacturers. He explained that forestry residue, generated after timber logs are processed, often ends up being burned or left unused. By collaborating with biofuel developers, the industry can find new uses for this waste material.

“We're very optimistic agreements will go a very long way to using the leftover residue that industry can utilise,” Mr Paine said. The ambition is to make the most of every available resource, ensuring that no part of the timber is wasted.

A Key Partnership for Sustainable Fuel Development

OneFortyOne, a company that owns 80,000 hectares of pine plantations in the Green Triangle region, has entered into an agreement with HAMR Energy, a biofuel developer. This partnership involves supplying forestry waste to be converted into low-carbon methanol at HAMR’s future site in Portland, Victoria.

The agreement includes a two-year research and development phase, during which OneFortyOne will supply timber waste for testing. Nick Chan, director of strategy and corporate development at OneFortyOne, emphasized the importance of maximizing the value of the trees they grow.

“You grow these trees for 30 years or longer and you want to make sure that you get the most out of it over that entire time period,” he said. “Every thing you can do to ensure you minimise the waste is only going to add to the value of those trees.”

HAMR Energy plans to complete the initial research phase within two years, with the proposed Portland site expected to be operational by 2030. David Stribley, co-founder of HAMR, noted that the agreement is a significant milestone in the project’s development. It helps attract potential customers and investors who are essential for bringing the facility online.

Mr Stribley also mentioned that the Cleaner Fuels Program has provided confidence to the growing biofuels sector. “Transitioning society's use of fossil liquid fuels, along with bringing fuel production back onshore in Australia, is a huge undertaking,” he said.

Biofuels and Electrification: Driving the Future of Transport

Mark Brown, director of the University of the Sunshine Coast Forestry Research Institute, has been working with forestry industries globally to explore biofuel opportunities. He pointed out that while recent announcements have brought biofuels into the spotlight, the industry has been investigating this area for decades.

“[It's] the ability to produce a fuel that's effectively the same as the fossil-based fuels used today and drop that into existing technology,” Professor Brown said. “This represents a huge opportunity to accelerate the transition to renewables and tackle the climate change challenge more acutely.”

Australia’s climate projections emphasize the need for electric-powered cars, trains, and trams to reduce emissions. However, in sectors where electrification is not feasible—such as aviation, shipping, and long-distance freight—biofuels are expected to serve as a viable alternative to traditional diesel.

Professor Brown added that in the early days of renewable energy, each form of renewable energy sought to be the sole solution. Now, the focus has shifted to a suite of solutions, including wind, solar, hydro, and biofuels. This diversified approach is critical for achieving long-term sustainability goals.