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Friday, 26 September 2025
Forestry industry says it can meet demand for biofuels as climate targets near.
Forestry products could one day be shipped out of the Port of Portland using fuel made from the industry's own waste. (Supplied: SA Timber Processors Association)
In short:
The Australian government has announced a $1.1 billion program to promote biofuel manufacturing and development.
Forestry company OneFortyOne has announced a deal with biofuel developer HAMR to supply waste to be converted into bio-methanol.
What's next?
The Australian government is aiming to cut emissions by 62-70 per cent by 2035.
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South
Australia's forestry industry says it can turn its timber waste into
aviation and shipping fuel as part of the country's move away from
diesel fuels.
South
Australian Forest Products Association chief executive Nathan Paine
said partnering with biofuel manufactures allowed the sector to reduce
waste.
Nathan Paine says the sector has been looking for the best way to manage "residue". (ABC South East SA: Sam Bradbrook)
He said forestry residue, created after timber logs were manufactured, was often heaped together and burned.
"The ambition is to utilise every stick of fibre domestically,"
Mr Paine said.
"We're very optimistic agreements … will go a very long way to using the leftover residue that industry can utilise."
Forestry deal reached
OneFortyOne
owns 80,000 hectares of pine plantations in the Green Triangle region,
between south-east SA and south-west Victoria, and operates a sawmill in
Mount Gambier.
This week it
reached an agreement with biofuel developer HAMR energy to supply
forestry waste to be converted into low-carbon methanol at its future
site in Portland, Victoria.
OneFortyOne's timber mill in Mount Gambier manufactures construction timber for housing construction. (ABC News: Bec Whetham)
The agreement will see OneFortyOne supply timber waste for research and development for the first two years.
"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," said the
director of strategy and corporate development Nick Chan.
"Every thing you can do to ensure you minimise the waste is only going to add to the value of those trees."
South Australia's south-east is the home of the state's forestry industry. (ABC News: Bec Whetham)
HAMR's
proposed Portland site is expected to be completed in about two years,
once the initial research phase with OneFortyOne is complete.
Co-founder David Stribley said the company expected to be manufacturing biofuels by 2030.
"Getting
this agreement in place is an important milestone in the development
phase in the project, helping attract potential customers and investors
who will be key to bringing the facility online," he said.
Federal government makes major investment in cleaner fuels (AM)
Mr Stribley said the Cleaner Fuels Program had given the burgeoning biofuels sector confidence.
"Transitioning
society's use of fossil liquid fuels, along with bringing fuel
production back onshore in Australia, is a huge undertaking,"
he said.
Biofuels, electrification, to drive transport
University
of the Sunshine Coast Forestry Research Institute director Mark Brown
has been working with forestry industries around the world to work with
biofuel programs.
He said while last week's announcement pushed biofuels into the spotlight, forestry had been investigating the 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.
Professor Mark Brown says Australia is behind other countries when it comes to biofuel implementation. (Supplied: Forestry Australia)
"[It]
represents a huge opportunity to accelerate that transition to
renewables and tackle that climate change challenge more acutely."
Australia's climate projections call for electric-powered cars, trains and trams to help reduce emissions.
But
where electrification is impossible, like in aviation, shipping and
long-distance freight, biofuels are expected to replace traditional
diesel.
"In the early days of renewables there was a lot of each renewable seeking to be the solution," Professor Brown said.
"We've moved away from a solution to a suite of solutions — wind, solar, hydro, biofuels and bio-energies."
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