MEDIA RELEASE
21 November 2025
NSW Renewable Fuel Strategy to accelerate low carbon industry growth
The NSW Government today released its Renewable Fuel Strategy, marking a major step for the state’s industrial and clean energy future. The Strategy commits up to $170 million in funding for renewable fuel and biomethane production, expands the Renewable Fuel Scheme to include biomethane, and sets a clear pathway for scaling domestic renewable fuels in NSW.
This positions NSW as a national leader in renewable fuel development, strengthening regional economies, reducing emissions from heavy transport and industry, and improving domestic fuel and energy security at a time of ongoing global volatility.
Bioenergy Australia CEO Shahana McKenzie said the Strategy provides exactly the type of policy direction needed to unlock new projects and commercial momentum. “Today’s announcement shows the NSW Government is prepared to lead the next phase of Australia’s low carbon industrial transition. Renewable fuels are no longer a future ambition for NSW. Today’s announcement moves them into the mainstream of the state’s clean energy transition and provides the certainty needed for investment, construction and new regional jobs.”
“This is the kind of policy that builds capability at scale. It will stimulate new biomethane and biofuel production, activate agricultural residues and waste streams, and boost local manufacturing, transport and logistics activity across regional NSW.”
McKenzie said the Strategy is especially critical for sectors that cannot electrify quickly, “Heavy transport, mining fleets, manufacturing, maritime and aviation all need viable low carbon alternatives right now. Renewable fuels and biomethane offer immediate, scalable solutions for these sectors, and NSW is positioning itself to meet that demand.”
She said NSW’s move has national significance, “This is a significant moment for NSW and for Australia. It signals that renewable fuels are essential to a resilient, low carbon economy and that the state intends to compete in a global market that is growing at extraordinary speed.”
Bioenergy Australia looks forward to working with government, producers, researchers and investors to ensure the Strategy drives real project delivery, commercial outcomes and emissions reduction.
ENDS
Available for Interview: Shahana McKenzie, CEO, Bioenergy Australia
Media Enquiries: Claire Maloney | 0431 279 785 | [email protected]
About us:
About Bioenergy Australia, the Low Carbon Fuels Alliance of Australia and New Zealand (LCFAANZ) and the Renewable Gas Alliance (RGA):
The Low Carbon Fuels Alliance of Australia and New Zealand (LCFAANZ) acts as a collaborative platform to advance low carbon fuel production, policy, education, and marketing across Australia and New Zealand, with the goal of building a commercially viable industry. The LCFAANZ supports the development of a variety of low-carbon liquid fuels, including Sustainable Aviation Fuel (SAF), renewable diesel, biodiesel, biomethanol, and ethanol.
The Renewable Gas Alliance aims to create a collaborative environment to drive a higher level of understanding, uptake and engagement relating to the renewable gas opportunities in Australia. Whilst we acknowledge there are other forms of renewable gas, the focus of this Alliance is Renewable Natural Gas (RNG), also known as Biomethane.
Bioenergy Australia is the national industry association committed to accelerating Australia’s bio economy. Through targeted advocacy, campaigns, education, industry building and allied sector engagement, we are:
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Enabling decarbonisation of Australia’s hard to abate sectors
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Enhancing energy security, supply and supporting the transition of Australia’s energy system
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Growing Australia’s economy and providing jobs and economic development including for regional Australia
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Enabling the development of Australia’s circular economy
Contact details:
Media Enquiries: Claire Maloney | 0431 279 785 | [email protected]