Bioenergy circular economy opportunities
Bioenergy is a form of renewable energy generated from the conversion of biomass into heat, electricity, biogas and liquid fuels. Biomass is organic matter derived from forestry, agriculture or waste streams available on a renewable basis. It can also include combustible components of municipal solid waste.
The bioenergy sector is a complex industry, comprising many different resources, technologies, products, coproducts, stakeholders, and markets.
Organic waste that ends up in landfill produces methane emissions as it breaks down. Methane emissions are 25 times more harmful than carbon dioxide. Using organic waste to generate bioenergy reduces greenhouse gas emissions, not only through diversion from landfill but by displacing demand through fuel switching of electricity, gas or liquid fuels.
Investing in bioenergy
Australia’s Bioenergy Roadmap, developed by the Australian Renewable Energy Agency, projects that Australia’s bioenergy sector could:
- contribute to around $10 billion in extra GDP per annum
- create 26,200 new jobs
- reduce emissions by about 9 per cent
- divert an extra 6 per cent of waste from landfill
- enhance fuel security.
The Bioenergy Roadmap highlights the opportunities bioenergy offers for regional development. Many of the bioenergy feedstocks come from agricultural activities and the livestock industries. As most of these industries are regional, bioenergy investment will support long-term regional employment, provide additional revenue streams for farmers and ultimately national economic growth.
In Victoria, the agricultural sector has the largest theoretical potential for bioenergy production followed by the tertiary services sector which includes industrial food production and commercial food waste. Mixed organics and biosolids (municipal wastewater sludge) from the MSW sector present the next streams for potential biogas potential.
For more information on bioenergy opportunities refer to Victoria’s Investment Prospectus Bioenergy
Sustainability Victoria provides facilitated support and guidance to companies and individuals involved and interested in Victoria’s bioenergy value chain.
We can assist you to develop your project strategy and help you build relationships within Victoria’s bioenergy value chain. We assist to identify and source funding options and can help you navigate and understand the approvals pathways for your project. Our goal is to support the development of Victoria’s bioenergy sector and bring together project partners to contribute to overall uplift and development of the sector.
For more information on Sustainability Victoria facilitation support, contact us at invest@sustainability.vic.gov.au
Bioenergy plays a major role in supporting the dual aspirations of halving organic waste from landfill by 2030 and increasing the proportion of renewable energy generated in Victoria to 50% by 2030 and Victoria's transition to a circular economy.
With efforts to decarbonise mains gas through Victoria’s Gas Substitution Roadmap, bioenergy / biogas could also play a role in supporting the transition to net zero emissions for the gas sector.
The Gas Substitution Roadmap, released in July 2022, details the Victorian Government’s priorities and actions for decarbonising the gas sector.
Contact us for more information at invest@sustainability.vic.gov.au.
Resources
- Read the Australian Biomass for Bioenergy Assessment Report. The Australian Biomass for Bioenergy Assessment (ABBA) is funded by ARENA. Its purpose is to identify biomass resources for bioenergy across Australia to catalyse investment in the renewable energy sector.
- Read more about the Australia Biochar Roadmap. It demonstrates and explains the huge potential for growth of biochar production and use in Australia.
- Read the Estimate of Victoria’s Biogas Potential report which analyses and expands the Australian Biomass for Bioenergy Assessment (ABBA) project biomass data and provides an estimate of Victoria’s biogas potential.
- Read the Government Measures and Intervention report which investigates global measures and intervention strategies that facilitate anaerobic digestion infrastructure development and provides recommendations for Victoria.
- Check Recycling Victoria’s Data Hub for Victoria’s waste projection model on organics.
Victorian Bioenergy Network
The Victorian Bioenergy Network (VBN) is an association of people who share a common interest in bioenergy as a form of renewable energy. Their vision is to revolutionise Victoria’s energy landscape by driving forward the innovative potential of bioenergy within the circular economy. Through collaboration, advocacy, and strategic partnerships, they are committed to leading the way towards a circular and greener energy future for Victoria and beyond.
Bioenergy Australia
Bioenergy Australia is committed to accelerating Australia’s bioeconomy. Our mission is to foster the bioenergy sector to generate jobs, secure investment, maximise the value of local resources, minimise waste and environmental impact, and develop and promote national bioenergy expertise into international markets.
Be a part of Australia’s bioenergy future: join Bioenergy Australia.
Grants and investment
In 2022, Sustainability Victoria opened a $10 million Waste to Energy Bioenergy Fund to support the development of projects that recovers organic waste and increases waste to energy infrastructure processing capacity in Victoria.
Twenty-six projects are supported through the Bioenergy Fund, which will process residual organic waste and increase renewable energy generation in Victoria.
Read about Waste to Energy Fund: Bioenergy – Funded projects.
Check Sustainability Victoria Grants and Funding for the list of current and upcoming grants
Subscribe to Sustainability Victoria Grants and Funding alert to receive notifications of new grants.
The following government departments and agencies may also have grants available for you:
Rebate programs
In addition to government grant funding, there is potential for all waste to energy (including bioenergy) projects to access rebates through Victorian Energy Upgrades (VEU) program and Emission Reduction Fund (ERF) incentives. A project cannot claim environmental rebates under more than one federal or state-based scheme. It is recommended that project developers start conversations early on in their project, with accredited consultants, to understand the suitability and timeline of these schemes to their project activities.
Victorian Energy Efficiency Certificate, Essential Services Commission
Victorian Energy Efficiency Certificates (VEEC) are delivered by the Essential Services Commission under the Victorian Energy Upgrades program. Eligible projects that can demonstrate CO2 reduction through energy related activities can access VEEC rebates. Each VEEC represents one tonne of greenhouse gas emissions reduction. VEEC value is projected to keep rising in response to market drivers and VEEC creation can cover a considerable portion of the project cost.
Australian Carbon Credit Units, Clean Energy Regulator
The Australian Carbon Credit Unit (ACCU) Scheme (formerly known as the Emissions Reduction Fund) provides incentives for a range of organisations and individuals in the industry and the land sector. Industry can participate in the ACCU Scheme by reducing emissions, improving energy efficiency, avoiding emissions of methane and nitrous oxide or converting methane into carbon dioxide. Each ACCU represents one tonne of carbon dioxide equivalent (tCO2-e) emissions stored or avoided by a project.
Renewable Energy Target, Clean Energy Regulator
The Renewable Energy Target (RET) is an Australian Government scheme, under the Clean Energy Regulator (CER), designed to reduce emissions of greenhouse gases in the electricity sector and encourage the additional generation of electricity from sustainable and renewable sources. Large-scale power stations and owners of small-scale power systems that generate electricity from an eligible renewable energy source such as biomass or organic feedstock can apply to participate in the Large-scale Renewable Energy Target (LRET) and Small-scale Technology Certificates (STC) for every megawatt hour of power generated.
Help with your circular economy project
Our Circular Economy and Investment Facilitation Service helps you navigate the approvals pathway and source funding options for bioenergy infrastructure.
