Aviation biofuel bucks a boon for NQ canegrowers

The Townsville Bulletin

A $30 million boost for the aviation industry has promising knock-on effects for North Queensland sugarcane growers, farmers and politicians say.

This week the federal government announced a $30 million grant scheme for companies to manufacture sustainable aviation fuel.

Growers producing heavier, less sugar-focused cane could be at the forefront of biofuel-based sustainable fuel.

A group of farmers called Burdekin Renewable Fuels has been lobbying state and federal governments for funding for the past few years. Director and Home Hill grower Phil Monaro said the funding was welcome but he would wait and see the true benefit for North Queensland sugarcane farmers.

“The funding is encouraging and it’s something that’s needed.

“We’ve had meetings with (state and federal) government departments and they’re keen to get renewables up and running,” Mr Monaro said.

“If we get this (biofuels) industry up and running we can control our own futures … Burdekin growers will be keeping a close eye on this funding.”

Burdekin Renewable Fuels itself was in the thick of a pre-feasibility study into aviation fuel, due in the next few weeks, and after that a 12-month study would be done into building a plant, Mr Monaro said.

In May the state government signed a memorandum of understanding with Qantas to build a sustainable aviation fuel industry, leveraging sugarcane and agricultural by-products for biofuel.

Before the federal election last year, Labor promised $5m to Sydney-based company Licella, to prepare for a bio-refinery in the Burdekin.

The Australian Defence Force has signalled up to half of its fuel could be replaced with renewables, but that required a commercialised industry.

Bob Katter said North Queensland’s sugar industry was primed to deliver Australia’s renewable and sustainable fuel requirements.

Former Queensland Canegrowers chair and Mackay grower Paul Schembri said the developments in biofuels was vindication for the industry.

“ … because for decades we’ve been saying sugarcane could be the cornerstone of a bioenergy industry,” Mr Schembri said.

While growers could celebrate the funding news, they needed to be kept in the “economic loop” of any developments, and incentivised to be a part of the biofuel industry, he said.

In announcing the scheme on Wednesday, federal Climate Change and Energy Minister Chris Bowen said aviation emissions were 1.5 per cent of national emissions.

“ … but if we’re going to reduce emissions by 43 per cent and get to net zero, we need to make every post a winner.”

“People in the (aviation) sector want to reduce emissions, but it’s genuinely difficult,” Mr Bowen said.

ARENA, the federal government’s renewable investment agency, would invest the $30m to work with companies to make sustainable aviation fuel a reality, the Minister said.

Early stage research had been done, so the scheme was about turning that research into commercial reality, so Australian and international airlines refuel with biofuel in Australia, he said.

Federal Transport and Regional Development Minister Catherine King said the scheme was “great for our agricultural sector”.

“We know there are people, particularly in industries like the sugar industry that are looking for new ways to develop their products and the feedstock with sustainable aviation fuel is an exciting opportunity for many of them.”