YSRC Luka Gray and Jarrad Oakley Nicholls with Andi Csontos from Veyter

DEVELOPMENTS in Australia’s fledgeling biofuel sector include a proposed value-adder for Western Australian tallow and canola, endorsement of Bomen Bioenergy, and an update on JetZero.

Refinery proposed near Geraldton

The Yamatji Southern Regional Corporation (YSRC), Australian strategy and design firm Veyter and its Canadian parent Agilitas Advisory Corp have signed a Memorandum of Understanding to explore the development of a renewable agri-diesel refinery near Geraldton in Western Australia’s Mid-West.

The MOU was endorsed by the YSRC Board, and concept-stage work has now commenced as the parties progress the project through feasibility.

The plant would produce about 1.1 billion litres of agri-diesel a year, equivalent to 20,000 barrels per day, or approximately 4 percent of Australian diesel demand, made from WA canola and tallow.

Agri-diesel is a drop-in substitute for conventional diesel, requiring no blending or engine modification, and cutting lifecycle emissions by approximately 85pc.

Output would be sold domestically into mining, agriculture, transport, aviation and defence markets.

A facility of this scale would carry indicative capital expenditure of approximately $2.5 billion, including the refinery, an integrated oilseed-crushing facility, and associated infrastructure.

Confirming and refining that estimate will form part of the feasibility studies.

Any decision to build would follow front-end engineering design and a final investment decision.

WA is Australia’s largest canola-producing state and accounts for around half of national production, worth about $1.2 billion a year, and Australia is the world’s largest exporter of tallow.

Refining that feedstock domestically would keep more of the value onshore and reduce exposure to imported product, which the parties estimate carries a 2-8pc premium at the wholesale level.

The Pilbara alone consumes around 4 billion litres of diesel a year.

“For Yamatji people, this is about moving beyond participation to genuine ownership of major industry on our Country,” YSRC chief executive officer Luka Gray said.

“A project of this scale has the potential to create lasting economic opportunities for Yamatji people, Mid West growers and the broader region, while contributing to Australia’s domestic fuel security.”

The project is being progressed on the basis of 51pc First Nations majority ownership, giving Yamatji Traditional Owners a controlling interest in the project.

The remaining 49pc interest would be held by Veyter.

The model is designed to ensure Yamatji people participate not simply as stakeholders or beneficiaries, but as majority owners of a major industrial project on Yamatji Country.

Oakajee Strategic Industrial Estate is being assessed as a potential location, alongside other sites within the Yamatji Nation ILUA area.

Agilitas Advisory Corp managing partner Ron Loborec said early estimates indicate approximately 4000 construction jobs and approximately 400 direct operating positions, alongside additional demand for Mid West grain growers.

“Projects like this get financed when the feedstock, the land, the power and the offtake market are already in place. In the Mid West they are,” Mr Loborec said.

“We have taken renewable fuel projects to FEED stage in Canada with First Nations partners holding the majority, and that experience is what we bring here.”

Policy settings

Australia currently has no commercial-scale renewable diesel production, and the project’s viability depends on Commonwealth policy now under development, in particular the demand-side mechanism for low carbon liquid fuels.

The parties consider that substantive demand-side certainty, alongside the Cleaner Fuels Program and the Future Made in Australia Innovation Fund for Low Carbon Liquid Fuels, is a precondition for a final investment decision.

Veyter strategy designer Andi Csontos said engagement will continue with the Commonwealth and the Western Australian Government.

“Projects of this scale are rarely undone by the engineering,” he said.

“They are successful as a result of the relationships, and by decisions taken with the right people in the room,”

“Our work is designing how this partnership makes its decisions, so that Traditional Owners, the State, growers and future offtakers each have a genuine say from the start.”

The parties have commenced a staged 12-month program of work to complete a full pre-FEED study by Q3 2027.

Subject to those results and a final investment decision, front-end engineering design would be underway in 2027 with first production targeted for 2032.

Wheat stubble near Ardlethan, NSW. Photo: Valorify

NSW agri project endorsed

The Bomen Bioenergy project, also known as the Riverina Bioenergy project, has been named as one of five investments to be endorsed under the NSW Government’s Investment Delivery Authority.

The IDA program provides practical, non-financial support to projects to remove delivery barriers, improve coordination across government and accelerate delivery.

Expressions of Interest opened in in June for a targeted fuel security round of the IDA program for commercially led projects valued at more than $100 million.

A total of 26 EOIs were received, while 24 submissions were made through the concurrent market sounding process.

The Bomen Bioenergy project is proposed for the Wagga Wagga Special Activation Precinct.

The facility will produce biomethane using agricultural feedstocks to generate renewable fuel and associated products.

Parent company, Valorify, wrote on social media that it was “proud to announce that its Riverina Bioenergy project…has been identified and endorsed by the NSW Investment Delivery Authority”.

“Our project offers genuine scale in both renewable gas and/or low carbon liquid fuels, enhancing domestic energy security while also activating rural and regional communities across the state,” the post said.

According to the Valorify website, the Bomen Bioenergy project will produce four petajoules (PJ) of biomethane into the NSW gride per annum across two stages.

The total output would require approximately 300,000 tonnes of straw per year to be transformed into biomethane.

“Riverina Bioenergy will create new jobs in the region, offering diversification of farm income and leveraging existing pipeline infrastructure, while also helping to reduce the impact of crop stubble burnoff,” the website said.

“The operating model will also produce a biofertiliser product to be recirculated back into the farming catchment as part of a regional scale, Circular Economy initiative.”

Minister for Industry and Trade Anoulack Chanthivong said five projects spanded fuel storage infrastructure, renewable fuel production and heavy electric vehicle charging infrastructure.

The other projects included a waste-oil re-refinery with onsite storage; expansion of aviation fuel storage infrastructure; expansion of fuel storage, blending and pipeline infrastructure; and an electric truck depot featuring ultra-fast charging infrastructure and a renewable-powered freight fleet.

“Industry has responded strongly to this targeted fuel security round, and these five projects are exactly the kind of investments we want to see more of: commercially driven, future-focused and capable of strengthening our economic resilience,” Mr Chanthivong.

“At a time of global uncertainty, NSW is backing the infrastructure and industries that will secure supply chains, support jobs and keep our economy moving.

“The Investment Delivery Authority is helping turn major proposals into real projects faster, giving investors’ confidence that NSW is open for business and ready to partner with industry.”

Jet Zero hits milestones

Jet Zero Australia has achieved three major milestones for Project Ulysses, its proposed commercial-scale Sustainable Aviation Fuel (SAF) and Renewable Diesel (RD) refinery in Townsville

These milestones include:

• completing a $30 million funding round, backed by Qantas and Airbus;
• welcoming POSCO INTERNATIONAL as a new strategic investor; and
• securing Final Development Approval for its proposed refinery site in Townsville from the Queensland Government.

The $30 million funding round, managed by Barrenjoey, received strong institutional investor support, including investment from Qantas and Airbus.

The proceeds will primarily fund completion of Front-End Engineering Design (FEED) and the Project’s continued progression towards Final Investment Decision (FID) and construction.

POSCO INTERNATIONAL, a global energy and manufacturing company, becomes Jet Zero’s latest strategic investor.

The partnership will explore opportunities across fuel offtake, infrastructure and feedstock, subject to further agreement.

The investment represents POSCO INTERNATIONAL’s first globally in a SAF and Renewable Diesel developer, reinforcing growing international interest in Queensland’s emerging low carbon liquid fuel industry alongside existing investor Idemitsu Kosan.

Jet Zero Australia chief executive officer Ed Mason welcomed the completion of funding round, especially the involvement of POSCO INTERNATIONAL.

“Completing our $30 million funding round, welcoming POSCO INTERNATIONAL and securing final development approval are defining milestones for Project Ulysses,” Mr Mason said.

“We are particularly pleased to welcome POSCO INTERNATIONAL as a strategic investor.

“Their financial strength, global reach and deep understanding of energy markets make them an ideal partner as we progress the Project towards construction.”

He said the company was pleased that it had backing from organisations along the supply chain.

“Some organisations will buy low carbon liquid fuels.

“Others will invest in building the industry.

“We are fortunate to be backed by organisations committed to doing both.”

A spokesman on behalf of POSCO INTERNATIONAL backed the views of Mr Mason, commenting that the company was “thrilled to partner with Jet Zero Australia at such a pivotal moment”.

“Australia has always been a strategic core hub for POSCO INTERNATIONAL’s traditional energy and mineral businesses, and this investment marks a significant step in transitioning our portfolio towards a decarbonized future,” the spokesman said.

“By strategically securing essential low carbon liquid fuels like SAF and Renewable Diesel, we are expanding our sustainable energy and feedstock distribution capabilities.

“Using Project Ulysses as an anchor asset, we look forward to co-developing SAF supply chains that will ultimately grow into a vital hub, contributing to the shared energy security of both South Korea and Australia.”

Qld Govt approvals

Project Ulysses has also received its final Development Permit Decision Notice from the Queensland Office of the Coordinator-General, completing its principal development approvals.

These include its Environmental Authority, EPBC Act determination of “not a controlled action” and Cultural Heritage Management Agreement with the Bindal People.

The Project is expected to create approximately 1000 jobs during construction and 100 permanent operational roles, while helping establish a broader Australian biofuels industry capable of supporting more than 18,000 jobs by 2040 across feedstock production, agriculture, refining, manufacturing and logistics.

The Project is positioned to strengthen Australia’s fuel security and sovereign industrial capability, while helping establish North Queensland as a leading hub for Australia’s emerging low carbon liquid fuels industry.

The milestones come as the Queensland and Australian Governments progress policies to strengthen fuel security, sovereign manufacturing capability and regional investment, including measures designed to support the development of a domestic low carbon liquid fuels industry.

Sources: Agilitas Advisory Corp, Jet Zero, NSW Government