By the Queensland Government
As global demand grows for more secure energy sources, biofuels are emerging as a critical pillar of the transition to a lower‑emissions economy. Queensland, Australia, is well placed to lead that shift.
With varied agricultural, forestry and waste feedstocks, strong regional supply chains, established ports and freight infrastructure, and clear government support, Queensland offers investors the conditions to scale biofuels production and connect to domestic and international markets.
Why biofuels — and why now?
Globally, governments and industries are moving quickly to reduce emissions from fuels, particularly in sectors that are challenging to transition, such as aviation, freight and heavy transport.
For Queensland, this global shift presents a significant opportunity to unlock new income streams and create long-term investment in regional communities.
Queensland’s competitive advantage in biofuels
Biofuels are an emerging priority industry for the Queensland Government to unlock new economic opportunities. Investment from industry partners is helping to identify the best opportunities, identify regulatory barriers, and facilitate viable projects.
The state has access to diverse feedstocks, including agricultural by-products and residues from sugarcane, horticulture and other cropping systems. There is also potential to develop novel feedstocks such as pongamia, which is being trialled.
Queensland also offers strong logistics and export connectivity, with established ports, freight networks and proximity to Asia Pacific markets. This is a critical advantage as demand for low emissions fuels grow across the region.
From paddock to power: Kalfresh
At Kalbar in Queensland’s Scenic Rim region, Kalfresh is an agribusiness progressing Australia’s first integrated food and bioenergy precinct, utilising public‑private investment.
The A$291 million Scenic Rim Agricultural Industrial Precinct will include a bioenergy facility that will convert agricultural and food processing waste into renewable energy and sustainable fertilisers using anaerobic digestion technology.
At full capacity, the facility is expected to generate enough natural gas and electricity to power up to 31,000 homes or fuel approximately 98 million kilometres of heavy vehicle transport each year, while producing nutrient rich digestate that can be reused as a natural fertiliser on farms. Beyond energy production, the project demonstrates the circular economy potential of Queensland’s biofuels sector, where agricultural residues are converted into high value energy and soil inputs, supporting fuel security and productivity.
The precinct model also includes serviced industrial lots that can co-locate alongside renewable energy generation, further creating a scalable blueprint for other similar developments across Queensland.
The Kalfresh project is expected to deliver more than 1000 jobs during operations of the Precinct, reinforcing the role biofuels can play in supporting long-term employment and skills development.
The Kalfresh example represents a broader opportunity for investors that leverages Queensland’s agricultural strength, existing logistics networks and a strong government–industry collaboration.
Kalfresh Scenic Rim Agricultural Industrial Precinct
A growing opportunity for investors
The Queensland Government is actively supporting the growth of its broader sovereign industries agenda by backing projects that grow sovereign capability and position Queensland as a destination of choice for investment.
By creating the right conditions for industry to grow, Queensland can attract capital that drives tangible economic outcomes.
With strong policy alignment, proven industry capability and global demand converging, Queensland is well placed to support the next phase of biofuels development, moving from demonstration to scale.
Queensland is ready for the next wave of biofuels investors, those looking to partner with industry, tap into established agricultural supply chains and help build a more secure, lower‑emissions fuel future.
The upcoming Global AgInvesting Conference in Australia from 10 to 11 June 2026 will bring together government, producers, investors and innovators to explore Queensland’s growing biofuels future.
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