Biofuels

Vision

The Queensland Government has committed to explore how the biofuels industry can expand while working closely with the agricultural sector to boost its output to $30B by 2030.

Queensland’s sovereign biofuels production supports our key industries with benefits shared throughout the value chain.

Why Queensland’s biofuels industry matters

Global and domestic demand for biofuels is forecast to grow substantially. The potential size of the biofuels opportunity for the Australian and Queensland economy is significant.

Queensland can capitalise on this opportunity with diverse feedstocks that suit different biofuels processing technologies, highly skilled labour and engineering resources, and proximity to markets.

In regional Queensland, the biofuels opportunity could open doors to new investment that builds resilience, diversifies local economies and supports high-quality jobs. Sharing those benefits along the value chain from growers and producers through to fuel manufacturers and users is a priority for the Queensland Government and shapes how we're supporting the biofuels sector.

In addition to the direct economic contribution of the biofuels value chain, biofuels are going to be critical for some industries to remain globally competitive and grow.

Those traditional sectors powering our economy – resources, tourism, primary industries – will all need biofuels for at least another two decades and, in some cases such as aviation, considerably longer.

Domestic biofuels production will be vital for fuel security in a world where demand will outstrip supply.

Biofuels have the potential to be a major contributor to achieving the target to boost Queensland’s primary industries output to $30B by 2030. This target is supported by the Primary Industries Prosper 2050. This 25-year blueprint for the agriculture sector considers biofuels a value-adding opportunity for feedstock growers and producers.

Types of biofuels

Biofuels are renewable energy sources derived from biogenic materials, such as biomass and residues, that are used as alternatives to fossil fuels. They are considered renewable as the feedstock for their production can be grown relatively quickly or are by-products or waste from other industries.

How government supports biofuels industry development

Biofuels is one of the priority industries identified as a focus for industry development to build sovereign capability, unlock new economic opportunities and grow Queensland’s regions.

The Queensland Government working with industry partners to facilitate viable biofuel projects, identify opportunities to increase the availability of feedstocks, and address regulatory barriers. This includes:

• facilitating high potential projects and working with industry stakeholders and proponents along the supply chain, such as Ampol and Jet Zero, to understand emerging needs and issues, and looking to identify and address systemic barriers for industry;
• continuing to work with federal and other state counterparts to share information and learnings, and to influence relevant policies and programs.

In early 2025, a Biofuels Feedstock Expansion Study was commissioned, which considers 22 feedstocks across Queensland’s 9 regions. Due for completion in mid-2026, the Study will provide an evidence base for industry, communities and the Government, setting out the critical pathways for each region in Queensland for the most viable feedstocks to meet commercial production requirements.

For more information on biofuels industry development or to discuss potential project opportunities, contact biofuels@dsdip.qld.gov.au

Strategic Biofuels Advisor

Mr Chris Tindal is Queensland’s Strategic Biofutures Advisor. Since July 2018, he has provided a direct connection between the Queensland Government and key global and domestic stakeholders with a view to helping cement business relationships and projects for Queensland.

Biofuels Industry Envoy

Professor Ian O'Hara is Queensland's Biofuels Industry Envoy. Appointed in December 2016, he has extensive biofuels knowledge and global networks to promote and connect the Queensland domestic industry.

Sovereign Industry Development Fund

This fund focuses on strategic and catalytic investment partnership. Applications closed on 27 February 2026.

Queensland biofuels mandates

Queensland’s sustainable biofuel mandates set minimum requirements for the sale of biobased petrol and biobased diesel.

Find out more about E10 compatibility and learn more about the Queensland biofuel mandates.