A2EP welcomes up to $170 million in funding for biomethane and renewable fuel production in NSW Renewable Fuel Strategy
- A2EP
- 45 minutes ago
- 2 min read
MEDIA RELEASE
21 November 2025
NSW could lead the country in sustainable biomethane production and industrial use with major support outlined in the NSW Renewable Fuel Strategy
The Australian Alliance for Energy Productivity (A2EP) welcomes the NSW Renewable Fuel Strategy launched today by the NSW Government as comprehensive plan for NSW to capitalise on untapped natural resources, close circular economy gaps and answer industrial decarbonisation challenges.
Jarrod Leak, Chief Executive Officer of A2EP, commends the measures contained in the strategy to support greater utilisation of biomethane, an economical, drop-in fuel which can help decarbonise heat in the industrial and commercial sectors.
“Australia has the potential to replace more than 50% of its current industrial fossil gas usage with biomethane produced with anaerobic digestion technology but is 20 years behind the rest of the world in developing the industry,” said Mr Leak.
“It’s fantastic the NSW Government has recognised the potential of biomethane as a renewable fuel and has set out a plan backed with funding to kick-start the industry in NSW and lead the nation on this.”
The incentives and grants under the Renewable Fuels Strategy will help establish the first round of production facilities in NSW, drawing investment to regional areas and creating jobs.
Mr Leak highlights that incentives and grants cannot be provided indefinitely so the strategy must be complemented by better regulation to enable the greatest value to be extracted from these resources and technologies.
“Full value comes when the agriculture sector utilises the bio-fertiliser produced (digestate) and industry utilises the bio-CO2 produced. Well-defined frameworks and regulations will help monetise these value streams as well as reduce planning costs from more than $1 million potentially to less than $200,000.
“At A2EP, we see bioenergy and renewable fuels as critical to a more energy productive, decarbonised and resilient economic future for Australia. We are dedicating more resources to support bioenergy and look forward to working with the NSW Government to develop this exciting industry,” said Mr Leak.
A2EP is building support for renewable fuels in a number of ways:
Establishing and convening the Australian Bioenergy Industry Roundtable.
Hosting the Australian Renewable Heat Conference in 2024 and 2025 in Sydney with dedicated sessions on biogas and biomass opportunities for decarbonising heat.
Announcing this week the appointment of respected renewable fuels leader, Bronwyn See, to lead A2EP’s work in this area.
Planning to host a regional bioenergy forum in regional NSW in collaboration with the Victorian Bioenergy Network.
ENDS.