Australia Eyes Sugarcane Biofuels to Power Its Green Future – ASM Sees Potential to Meet 30% of Aviation Fuel Demand

The Australian Sugar Manufacturers (ASM) has presented an ambitious proposal to the Parliamentary Inquiry into Sugarcane Bioenergy Opportunities in Queensland, urging a $40 million investment to position the sugar industry at the forefront of Australia’s renewable energy and low-emissions fuel transition.

Representing a sector that sustains over 20,000 jobs in regional areas, ASM’s submission outlines how Queensland’s sugar industry can capitalise on its feedstock — including cane juice, molasses, and biomass — to become a national leader in biofuels, biogas, cogeneration, and biomanufacturing. The proposal hinges on coordinated action from both government and industry.

Key highlights of the submission include:

• The potential to meet up to 30% of Australia’s aviation fuel needs using sugar-derived materials. 

• The capacity to supply renewable baseload electricity to power 500,000 homes via cogeneration. 

• The opportunity to develop bioenergy precincts throughout regional Queensland, utilising a 4,000 km cane rail network to collect agricultural and forestry waste for fuel production. 

• New income streams for growers by using sugarcane tops and trash in bioenergy production. 

• ASM CEO Ash Salardini described the submission as a call to government to work alongside industry to establish a robust bioenergy and biomanufacturing sector in Queensland. 

“This is about more than energy — it’s about creating well-paid jobs in regional centres like Cairns, Mackay, Townsville, Tully, Ingham, Childers, and Bundaberg,” Salardini said. “We have the chance to build a sovereign capability in liquid fuels and bioenergy that will ensure the long-term future of one of Queensland’s foundational industries.”

The submission warns that the sugar sector is at risk without urgent diversification. Many mills are operating with production costs higher than global prices — prices that are artificially lowered due to international subsidies.

Salardini drew comparisons to global trends: “Countries like China, India and Brazil have recognised the strategic importance of industries like steel and sugar, and are backing them with significant support as part of their food and fuel security agendas.”

To enable this transformation, ASM is asking the Queensland Government for:

• ASM is seeking about AUD 40 million in combined government support for R&D, project development, and infrastructure  

• The inclusion of cane rail infrastructure in disaster recovery funding to enhance resilience. 

• Exploration of electricity offtake agreements to support sugar industry cogeneration, which offers renewable, baseload, and synchronous power. 

“We’re putting forward a proactive, cost-effective plan for government support that will future-proof an iconic Queensland industry,” he said. “We won’t sit back and wait for our viability to disappear.”

With the feedstock, infrastructure, and expertise already in place, the next step is a coordinated strategy. ASM called for a coordinated government–industry strategy to diversify the sugar industry and build a national bioenergy capability.