Bioenergy Australia Foreword
Discussions at the National Feedstock Roundtable highlighted the need to strengthen knowledge sharing and education across the value chain to build a shared understanding of feedstock opportunities and challenges. Participants highlighted that coordinated supply-side and demand-side policies are required to provide market certainty, attract investment, and position Australia’s feedstock sector as the foundation for the long-term success of the nation’s low-carbon liquid fuels and renewable gas industries.
The National Feedstock Roundtable proved to be a highly constructive initiative. Participants represented a diverse range of industries, including agriculture, forestry, waste, energy, manufacturing, construction, transport, and mining. Participant engagement highlighted that feedstock is a priority cutting across multiple sectors, with challenges and opportunities recognised as national rather than sector-specific. Industry demonstrated a strong commitment to continue working with government to develop strategies that position the sector for success, while also taking a leading role in driving progress.
Several focus areas of discussion emerged during the Roundtable, shaped by expert presentations and participant engagement.
Market access, policy signals, and industry alignment
• Demand outlook is strong, with several LCLF and RNG projects already announced and in development.
• The success of the first wave of projects will be crucial in building confidence among investors, policymakers, and the public. Adequate support is needed to ignite early industry growth and development.
Perceived availability of feedstock resources
• Mapping and understanding feedstock supply is highly complex, with many efforts underway by different organisations, but little consolidation. A stronger coordination of data and transparency is needed.
• Building on current feedstock resource data and mapping studies can strengthen alignment of Australian feedstock potential. Enhancing opportunities for biohubs, increasing confidence in supply, and attracting investment.
• Feedstock supply is dynamic, affected by seasonal variability, competing end-uses, and regional logistics constraints.
Industry readiness
• Different feedstock providers are at varying stages of understanding their potential and readiness to engage with the low-carbon fuel industry.
• Feedstock sustainability and certification emerged as a key area of focus for all sectors. Yet, there are uneven levels of understanding among participants about how carbon intensity is measured, certified, and valued
• Certification approaches will increasingly determine which feedstocks attract buyers.
While carbon accounting frameworks exist, uncertainty on how certification applies these frameworks and aligns with market expectations could delay industry planning and investment.
Importance of cross-sector collaboration
• The success of LCLF and RNG depends on cross-sector collaboration with the feedstock sector, leveraging synergies between agriculture practices, waste recovery, and low-carbon fuel production.
• Promoting knowledge sharing of carbon accounting and carbon intensity among feedstock providers and LCLF and RNG stakeholders will enhance understanding of reporting requirements and enable stronger collaboration between sectors.
• Increasing engagement with farmers and feedstock producers to position them as central stakeholders in developing the national feedstock strategy is essential for the strategy’s success.
Social license and sustainability
• Increase community education and awareness of the feedstock, LCLF and RNG sectors, emphasising that the economic benefits of developing this industry must be shared with and understood by local
communities, and that community trust is fundamental for sector growth.
• Australia’s substantial feedstock resources indicate the country has the potential and capability to develop an industry that supports “food, fibre, feed, and fuel”.
Key role of government for industry growth relies on policy
• Coordinated policy setting across wholeof-government is integral, as without it, industry risks being held back by inconsistent or fragmented policies.
• Targeted initiatives should support feedstock mobilisation, infrastructure, and logistics to enable efficient supply chains, connect producers with low-carbon fuel industries, and accelerate sector growth.
• Effective supply-side and demand-side policies and policy coordination are needed develop a domestic LCLF and RNG industry.
• Government support for innovation in agricultural practices and R&D into novel and underutilised feedstocks will broaden and diversify the feedstock base, unlocking greater supply capacity.
What was Australia’s National Feedstock Roundtable and what did it achieve?
On 28 August 2025, Bioenergy Australia convened the National Feedstock Roundtable in Canberra, in collaboration with Deloitte, industry and government. The National Feedstock Roundtable brought together Australia’s agriculture, waste, and energy sectors to discuss how to best support and optimise Australia’s critical feedstock industry to accelerate the development of LCLF and RNG.
The Roundtable was facilitated by Deloitte with speakers from Deloitte, The Department of Agriculture, Fisheries and Forestry (DAFF), GrainCorp, Clean Energy Finance Corporation (CEFC), and The Commonwealth Scientific and Industrial Research Organisation (CSIRO).
The purpose of the Roundtable was to understand the challenges, barriers, and opportunities faced by potential feedstock providers, and to create a platform for collaboration and information sharing across sectors Four key themes were discussed to gather insights and stimulate participant discussion. These themes included:
Of the four key themes, four insights emerged from participant discussions during the roundtable:
Developing an understanding of the biobased feedstock market opportunity and size will attract investment interest. This requires assessment of available feedstock supply by type and region.
Ensuring policy makers establish transparent, market-based, and technology-neutral policies that balance sustainable feedstock development, strengthen energy security, support domestic economic activity, and enable efficient emissions reduction.
Supporting the RNG and LCLF markets requires targeted feedstock infrastructure, mobilisation, and logistics to enable supply chain growth. Without clear support signals from government, confidence to scale capital investments becomes limited.
Enhancing collaboration across sectors along the value chain will reduce information asymmetry and deliver benefits to sustainable feedstock management and regional economies.
Live polling conducted by Deloitte captured participant perspectives on the progression and status of Australia’s feedstock and low-carbon fuel sectors, key barriers to cross-sector alignment, and potential solutions to these challenges. The data helped create a clearer understanding of industry views across the value chain and identified priority actions to inform market development and support. The live polling included:
15
82 Participants Critical Questions 745 Responses
Developing an understanding of the biobased feedstock market opportunity and size will attract investment interest. This requires assessment of available feedstock supply by type and region.
Recommendations for government and industry
Federal and state government to coordinate a comprehensive feedstock supply analysis as part of the forthcoming National Bioenergy Feedstock Strategy, identifying biomass potential and distinguishing between theoretical potential and practical feedstock uses.
Industry to share and coordinate data through initiatives such as the National Bioenergy Feedstock Strategy to help industry determine economic outcomes, project viability, and feedstock requirements. These insights could then be used to evaluate value pools and inform commercial decision making.
Government to allocate resources and funding to drive innovation through pilot projects that demonstrate agricultural advancements, such as those that could help expand feedstock supply and improve carbon intensity, such as:
• New crop rotations,
• Novel feedstocks,
• Planting on marginal land,
• Inclusion of Carbon Capture Storage for treatment and processing, and
• Adoption of new catalysts and enzymes
Building on the Australian Government’s ongoing efforts to develop the National Bioenergy Feedstock Strategy, enhancing feedstock transparency and advancing agricultural innovation are identified as critical steps.
The Roundtable revealed the need to drive clarity on the market’s full potential and priority investment areas. Major barriers included limited transparency around current and future feedstock supply, and insights around the commercial viability of feedstocks and locations.
Participants highlighted the need for clearer information on feedstock carbon intensity, consolidation of the various mapping initiatives underway across government and industry, and how food and fuel production can coexist.
Almost half of the feedstock industry are prioritising other end-use markets
42% of feedstock suppliers and aggregators are prioritising established demand drivers, such as overseas supply until clearer demand signals emerge within the clean fuels value chain.
Participants highlighted the importance of investigating and understanding carbon intensity for both conventional and emerging feedstocks. They emphasised prioritising the mapping and alignment of carbon intensity frameworks with key international trading partners to support the development of Guarantee of Origin (GO) standards.
Insights highlighted that consistent and competitively priced supply of high-quality feedstock is constrained by perceived costs of processing and limited infrastructure and transport across the supply chain. Australia’s nascent LCLF/RNG feedstock infrastructure reflects limited investor appetite based on the status of the industry.
While government investment can support the initiation of infrastructure and supply chain development, achieving large-scale outcomes depends on sustained private capital investment, which requires attractive returns.
Participants
indicated that understanding long-term economics was the greatest barrier in entering low-carbon fuels
market
Supporting the LCLF and RNG markets requires targeted feedstock infrastructure, mobilisation, and logistics to enable supply chain growth. Without clear support signals from government, confidence to scale capital investments becomes limited.
Recommendations for government
and industry
75% of industry participants indicate a need for concessional
funding
Majority of feedstock suppliers and aggregators expressed that the cost of expanding their production is too high and they require government grants for infrastructure, R&D and regional scale-up.
50% of forestry producers call for government-led infrastructure development
When asked about government initiatives to advance clean fuels, 50% of forestry producers highlighted the need for government led studies on supply chain cost and logistics, and investment to develop infrastructure and regional hubs.
Industry to identify and provide the government with priority logistical barriers to LCLF and RNG deployment, focusing on site-and-region-specific infrastructure needs. Government should include these priorities in a dedicated section of Australia’s Infrastructure Plan to guide targeted infrastructure development and support industry growth at local, regional, and national levels.
Industry should identify the most promising infrastructure and supply chain business models, highlighting key opportunities and challenges to guide targeted government support.
State and federal governments should develop detailed guidance and long-term investment plans based on industry needs, including assessments of costs, benefits, and carbon intensity, to address barriers and maximise the impact of public funding.
Ensuring policy makers establish transparent, market-based, and technology-neutral policies that balance sustainable feedstock development, strengthen energy security, support domestic economic activity, and enable efficient emissions reduction.
Transparent government supply and demand policies, developed with industry input to drive feedstock supply and LCLF and RNG uptake, are essential to grow Australian fuels and feedstock sectors. Increasing LCLF and RNG production will send a credible demand signal to feedstock suppliers, hence facilitating the expansion of domestic feedstock supply. Policies must be market-based and technology-neutral, aiming to develop a competitive market which drives measurable improvements in feedstock price and quality, decreasing carbon intensity and cost of abatement through stronger demand and technological advancement.
50% of feedstock suppliers and aggregators require clear demand signals
Most of the feedstock industry stated that insufficient and unclear market demand signalling has been a major barrier when considering participating in the renewable fuels sectors.
Recommendations for government:
LCLF
and industry
Government to develop a demand-side policy to ensure realistic demand measures are appropriately considered. Frameworks with broad coverage that set clear, outcome-focused performance targets, aiming to minimise costs for consumers. These frameworks should include broad coverage, set ambitious and achievable targets, and aim to minimise costs for consumers.
Government to consult across the supply chain on the $1.1 billion Cleaner Fuels Program production incentive for LCLFs to ensure it effectively drives impact, addresses industry needs, reduces barriers, and supports growth and uptake of LCLF production.
Facilitate a buyer's club to aggregate demand for LCLF and RNG, improving cost efficiency.
RNG
policy
Government to identify opportunities to expand existing initiatives, such as the Hydrogen Headstart and the Hydrogen Production Tax Incentive to include RNG.
Include RNG as an investment area within the Future Made in Australia initiative. This will allow RNG to be considered alongside other critical emission reduction pathways, such as renewable hydrogen and LCLF.
Allocate targeted funding to support the establishment of the RNG sector covering development, capital and operational aspects to support bridging the cost gap between RNG and fossil gas during the early market phase.
Engaging stakeholders involved in local feedstock development and supply, the production, processing, and supply of LCLF and RNG through coordinated collaboration will reduce information gaps to accelerate knowledge transfer, strengthen sector cohesion, and enable more focused and effective project delivery.
Co-action (Figure 1) is a structured framework that brings researchers, funders and users together during the early stages of knowledge acquisition/creation to ensure that research insights result in evidenceinformed policies that reflect cross-sector perspectives. The 3 stages, design, analysis, and creation form a continuous cycle of learning and improvement.1
DESIGN
CREATION
COLLABORATION
Joint evaluation of impacts of policies, strategies and interventions
Joint development of policy scenarios
of policy and innovation agendas
1
62% of participants have limited knowledge about feedstocks and their importance in producing LCLF and RNG
highlighting a major gap in industry understanding. With less than half feeling well-informed; this gap hinders effective decision-making and slows sector growth.
Enhancing collaboration across sectors along the value chain will reduce information asymmetry and deliver benefits to sustainable feedstock management and regional economies.
Recommendations for industry
Industry to convene multi-stakeholder workshops and focus groups to collaboratively share insights, build networks, and enhance both industry and cross-sector knowledge regarding feedstock deployment.
Industry to support the roll out of key government initiatives such as the National Feedstock Strategy, Low Carbon Fuels Consultation, Guarantee of Origin Scheme methodology development and the CSIRO’s Low Carbon Fuels Knowledge Hub.
Industry to work with government to prioritise critical infrastructure upgrades required to accelerate the sector.
Industry to drive cross-sector messaging that supports the “food, fibre, feed, and fuel” narrative, showcasing how Australia’s low-carbon industry complements rather than compromises Australian agriculture resources.
Adapted from Karcher, D. B., Cvitanovic, C., Hobday, A. J., Shellock, R., Stephenson, R. L.
Figure 1: The Co-Action process
List of participants
Airlines for Australia & New Zealand
AGRENEW
Australian Renewable Energy Agency (ARENA)
Australian Trade and Investment Commission (Austrade)
Australian Constructors Association
Australia Forest and Wood Innovations (AFWI) Centre for Sustainable Futures
Australian Forest Products Association
Australian Oilseeds Foundation
Australian Sugar Manufacturers
Bioenergy Australia
Blunomy
Brickworks
CANEGROWERS
Cargill
Clean Energy Finance Corporation (CEFC)
CSIRO
Cyan Ventures
Deloitte
Energy Users Association of Australia
DAFF
Federal Department of Climate Change, Energy, the Environment and Water
Federal Department of Infrastructure, Transport, Regional Development, Communications and the Arts
Forestry Australia
Grain Trade Australia
GrainCorp Energy
GrainGrowers
Grains Research and Development Corporation (GRDC) – Spiegare
LMS Energy
Manildra Group
Maritime Industry Australia Ltd (MIAL)
Meat and Livestock Australia
National Farmers Federation
NSW Climate Change, Energy, the Environment and Water
NSW Climate Change, Energy, the Environment and Water - GreenPower Accreditation Program
NSW Department of Primary Industries and Regional Development
Nufarm
Oil Mallee Association of Australia
Qantas
Queensland Department of Primary Industries
Queensland University of Technology
Race for 2030 Cooperative Research Centres
ResourceCo
Rio Tinto
Truck Industry Council
University of South Queensland
Water Services Association of Australia
Western Australia Department of Primary Industries and Regional Development
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